Despite the Japnese onslaught, the Chinese government never surrendered. The Chinese achieved few real military victories, but the Japanese were never able to defeat them. They moved further inland, setting up a new capital Kumintang. The War continued on a lower scale, but envolving the continued deployment of the bulk of the Japanese Army. After the fall of Hankow (October 1938), Nationlist tactics changed. The Nationalists after withdrawing west into the internior were on more defensible ground. The Japanese advantaged diminished as they moved away from the voast and supply lines became streached. The Nationists adopted what they described as "magnetic warfare". They attempted some major engagements if they were able to gain advantageous deployments against over streached Japanese units. The most sccessful Chinese operation was the repeated defense of Changsha. Japan and the Nationalist thus reached a stalemate (1940). Japan controlled the coast and most of the major cities. The Japanese found it difficult to persue their offensive into China's interior. In addition, the resistance in occupied areas ccupied substantial Japanese forces. Brutal Japanese actions against the civilian populatiin was unable to supress the resistance. Both Chiang and Mao concerned about each other were relkuctant to launch major operations againsdt the Japanese that might weaken their forces. Chiang was unable to launch any majoe offense against the Japanese with his poorly equipped and led army.
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