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As what always happens, the rich got richer and the poor ended up living in squalor and poverty. The Chinese rule was corrupt and the foreigners exploited the locals. Rebellion and revolt became inevitable. The Nationalist Party overthrew the Qing Dynasty and declared China as the New Republic. Sun Yat Sen was the new president. Marxism was soon becoming popular among the Chinese intellectuals, and in 1921 the Communist Party was formed. Among the party members was the young Mao Ze Dong. The Communist Party and the Nationalists initially formed an alliance together to unite the whole country. During World War II, the Japanese invaded Shanghai and afterwards, there was a power struggle, where the Communists forced the Nationalists out of China. The Nationalists ended up fleeing to Taiwan. In 1949, the Peoples Republic of China was formed by the Communist ruler Mao Ze Dong. This spelled trouble for Shanghai, where Communism did nothing for Shanghai. When Mao died, Deng Xiao Peng became ruler and in 1979 he opened up the markets and reformed all its trading links with the world. Shanghai benefited immensely from this economic development. |