The chapter offers a general introduction to the Ichigo campaign, particularly with reference to its economic impact. Launched late in the war when Japan’s position in the Pacific was deteriorating, it was the largest military campaign ever undertaken by the Japanese Imperial Army. The armies of Chiang Kai-shek performed very poorly, often just melting away. There was general pessimism about the war in China even as the Allies did well elsewhere.

The campaign had a calamitous economic impact on Free China. Food supplies were cut off. Hyperinflation continued to have a devastating impact on the lives of Chinese. There were struggles in maintaining the exchange rate of fabi and the beginnings of conflict with the United States over this issue. US treasury secretary Morgenthau became angry with Chiang. A second dispute over the sale of gold in China supplied by the United States created tension between Morgenthau and T. V. Soong who represented Chiang in Washington.