Japan's failings
The capture of Puyi would be the heaviest blow yet to the Japanese war effort. In fact, previous Japanese losses were not half as disastrous as the capture of Puyi. Within days, virtually all of the Manchurian army deserted, most of them surrendering to the nearest Chinese unit. Meanwhile, Chinese peasants all over Manchuria began harassing and often openly attacking Japanese supply lines. An incredibly large number of trapped Japanese solders still needed those supplies. The Japanese sent an envoy stating they would cede all their continental possessions to the Chinese save Korea.
Chiang quickly shot them down before ordering the destruction of all Japanese left in Manchuria.
Mao led a push into the sands of the Gobi. Their had been so many battles fought there that in some places you could walk from body to body without ever touching the sand.
The 7th Jun led an assault into the mountains still held by the Japanese. The Japanese were short of everything from ammunition to boots, but never the less fought courageous holding actions before retreating.
The last attack in the operation was launched by several Kuomintang army units, supported by over 200,000 Zapai. An unknown number of Japanese troops were taken prisoner, but it is known that Japanese losses dwarfed any other major defeat to date. It was quite possibly, as Chiang boasted, the worst defeat in Japanese military history.
Chiang ordered Port Arthur taken, but Mao ordered his army to move as fast as their legs would carry them to beat the Nationalists there, hopping to regain lost prestige. It was a vital port, and they met fierce resistance.
Despite ground victories, Japanese bombers were still a common sight over Nanjing, and Chiang ordered that better anti-aircraft systems be developed.
7th Jun pushed the enemy back into Korea, in preparation for the invasion.
However, Chiang could wait no further, and Operation Korean Liberation was launched on June 14th, before all the Chinese forces were in position.
Japan was desperate to turn the war around, and they demanded Indochina from the French Government, and got it. They thought they would open another front and weaken Chinese forces in Korea.
Chiang had long expected this, and the 200,000 Zapai of the Indochinese Army Group surged into the jungles of this new front, meeting little resistance.
Only twenty days after the invasion of Korea began, Chinese forces were making headway. This progress was delightful for Chinese command, who had feared a stalemate in the mountains. Most Japanese troops were ill trained Korean conscripts who surrendered at the first opportunity.
20,000 Japanese troops surrendered in the Cheongjin pocket alone.
The most notable resistance was in Ganggye, were under-supplied Japanese marines stubbornly resisted for over a month.
When they collapsed on July 26th, Japan sent another offer of peace, better then they had ever sent. Chiang still turned it down, knowing he could get more.
By mid August, all Japanese resistance in Korea had disintegrated.
Chinese forces smashed aside all resistance in Indochina, soon capturing Hanoi.
By September, China had complete control of Korea.
On the 25th, Indochina became a Chinese "vassal".
On the same day, Chiang made a radio announcement to all of China:
Chiang during his famous speech
"Four years ago, the great Chinese people were attacked by the Empire of the Rising Sun. It was the same Empire that humiliated our great country in 1895, and sent many of our grandfathers to their graves. Much has changed that day. Our nation now stands as a power that has crushed these invaders, and driven them into the sea! We have all suffered for this victory. Four million sons will never return to their mothers. Four million solders will never again drink with friends or kiss their wives. And four million good, brave men will never live in the China they fought for. But they did not die purposeless! They did not die for nothing! They died for a place, and an ideal, and a people! They died for China! They died for a true China, without the greedy Japanese coming and taking land whenever they felt like it! They died to show the Japanese Emperor that he was no god! They died so the flies would feed on Japanese corpses! And they died, so that the Land of the Rising Sun would see darkness. And they died for victory! So that the Land of the Rising Sun would forever be known as the Land of the Fading Sun!"
OOC: Sorry about the "attached thumbnails" but this new format is screwing me up