- Zhang Guotao's efforts to reinforce in Sichuan are met with a peasant rebellion, and his forces are driven out, northward.
1937 - 1945
- The Second Sino-Japanese War preempts the fighting of the Second Chinese Civil War, resulting in only intermittent clashes as the forces of Chiang Kai-shek defend their southern strong-holds and move northward seeking to win the support of folks in what would be the hinterland of the Communist Army who are preoccupied with fighting off the Japanese who are invading Korea and Manchuria.
Conclusion of hostilities in the First Indochina War. The stage is set for a cold war between the Kuomintang forces of South China and the French.
- March - Chiang Kai-shek decides against using the troops of the Northern Warlords in fighting against the CPC, rather negotiating a deployment of these troops to the southern and western fronts to fight against the Communists. He ignores the well-intentioned suggestions of the US General Marshall to cease his attacks.
- Chinese Civil War comes to an end as Chiang Kai-shek, his American supporters and the People's Liberation Army conclude a peace treaty, partitioning China into the People's Democratic Republic of China and the Republic of China.
- The Republic of China establishes the capital of Shenzhen, and quickly industrializes over the next 15 years to become a economic and industrial powerhouse.
- Tensions between the United States of America and the Union of Soviet Socialist Republics escalate to war erupting in Korea. For 1950, however the People's Democratic Republic of China and the Republic of China remain neutral, at least on the surface. It is abundantly clear to US-related forces that the Russians are transiting goods and materiel across PDRC territory.
- By year-end 1950, the combined UN forces have pushed the North Koreans nearly back to the Chinese and Russian borders.
- Squabbling between Moscow and Beijing results in only a limited force being supplied for the Chinese Spring Offensive, thus resulting in a smaller recapture of North Korean territory.
- The "Line Dakota" stalemate continued until the Armistice in 1953.
- An Armistice is signed between North and South Korea, backed by the UN. U.S. factories in South China are re-tooled and begin large-scale industrial production, beginning the Dragon Economy of South China.
- The course of the war continues much as OTL, however, due to the proximity of China, the USA and the USSR establish a very strong industrial complex to support the war. The USSR, in the closing days of the war destroys or moves their war factories to Vladivostok, whereas the USA transitions their factories in a lend-lease program to the government in Shenzhen.
- The line of the armistice and the DMZ follows a line from the mouth of the Taedong river to Songnim, down to Sariwon, to Ich'on, and up to Wonsan. South Korea's capital of Seoul was able to better dictate terms to North Korea and the communist government.
- North Korea establishes Pyongyang as its capital, while South Korea re-establishes its capital at Kaesong. Under strong trade from South China, South Korea prospers throughout the next 30 years.