The Guomindang/CFM, the only party in the Japanese puppet Republic of China, has lost most of its supporters among the Chinese after the Axis vixtory. The ineptitude of Wang Jingwei as the president of the Republic became apparent. A new, "progressive" force, sought inspiration and renovation; soon, European fascist principles were embraced: racism, militarism and collectivism. The Blue Shirts, the far right-wing Guomindang's militia, exterminated their political opponents within the party, and China was reorganized. While regarding Imperial Japan as a "big brother" and the Japanese as the Asian master race, the new Chinese Republic became an epigone of other European Fascist countries. Chiang became the great leader of China, ushering in a vicious cult of personality, the freedom of speech was quasi-abolished and the people were organised in new mass organizations. The foundations of Fascist China became nationalism, racism and Confucian values; non-Han minority peoples were regarded as inferior, and systematically exterminated or sinicised, thus copying the Japanese racial policies. Nonetheless, both Japanese and Shinto were adopted as national principles.

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