This view was confirmed when the Manchurian general Chang Hsüeh-liang, a recent convert to the Kuomintang, refused to halt construction of railway and harbor facilities in competition with the South Manchurian Railway, referring Japan to the Nationalist central government.
When a bomb of unknown origin ripped the Japanese railway near Shenyang (then known as Mukden), the Japanese army guarding the railway used the incident as a pretext to occupy Manchuria (Sept.18, 1931).
The 10,000-man Japanese Kwantung Army was responsible for guarding the Manchuria railway. In September 1931, it attacked one of its own trains outside Mukden (present-day Shenyang). Claiming that the attack had been carried out by Chinese soldiers, the Japanese used the event—now known as the Manchurian Incident—to provoke a fight with Chinese forces in Mukden and as an excuse to start a full-scale war in China.
The instigators of the incident were Kanji Ishihara and Seishiro Itagaki, staff officers in the Kwantung Army, a unit of the Imperial Japanese Army. Some blame these two men for starting World War II in the Pacific. They modeled their attack on the assassination of Zhang Zuolin, a Chinese warlord with a strong influence in Manchuria, whose train was blown up in 1928.
After the Manchurian Incident Japan sent 100,000 troops to Manchuria and launched a full-scale invasion of Manchuria. Japan took advantage of China's weakness. It encountered little resistance from the Kuomintang, taking Mukden in a single day and advancing into Jilin province. In 1932, 3,000 villagers were massacred in Pingding, near Fushan.
Chiang Kai-shek's army offered no resistance against the Japanese after Japan entered Manchuria in 1931. Out of disgrace Chiang resigned as head of the nation but continued on as head of the army. In 1933, he made peace with Japan and attempted to unify China.
In a tactic intended to halt the southward movement of Japanese soldiers from Manchuria before World War II, Chiang Kai-shek ordered his soldiers to breach the levees of the Yellow River and purposely divert its flow. At least 200,000, maybe millions, died, millions more were made homeless and the Japanese advanced anyway.
Despite Japanese cabinet opposition and a pledge before the League of Nations to withdraw to the railway zone, the army completed the occupation of Manchuria and proclaimed the puppet state of Manchukuo (Feb., 1932).
In March 1932, the Japanese created the puppet state of Manchukou. The next year the territory of Jehoi was added. The former Chinese emperor Pu Yi was named the leader of Manchukuo in 1934. In 1935, Russia sold the Japanese its interest in the Chinese Eastern Railway after the Japanese had already seized it. China’s objections were ignored.
Japanese sometime romanticize their occupation of Manchuria and take credit for the great roads, infrastructure and heavy factories they built. Japan was able to exploit resources in Manchuria using the Russian-built trans-Manchurian railway and an extensive network of railroads they built themselves. Vast expanses of Manchurian forest were chopped down to provide wood for Japanese houses and fuel for Japanese industries.
For many Japanese Manchuria was like California, a land of opportunity where dreams could be realized. Many socialists, liberals planners and technocrats came to Manchuria with utopian ideas and big plans. For Chinese it was like the German occupation of Poland. Manchurian men were used as slave laborer and Manchurian women were forced to work as comfort women (prostitutes). One Chinese man told the New York Times, “You looked at the forced labor in the coal mines. There wasn’t a single Japanese working in there. There were great railroads here, but the good trains were for Japanese only.”
The Japanese enforced racial segregation between the themselves and the Chinese and between the Chinese, Koreans and Manchus. Resisters were dealt with using free fire zones and scorched earth policies. Even so Chinese from the south migrated to Manchuria for jobs and opportunities. The pan-Asian ideology given lip service by the Japanese was a view widely held by the Chinese.
Japanese forces fought with Soviet forces along the Manchuria-Outer Mongolia bordered during May-September 1939. Japanese troops were slaughtered in a Mongolian Desert called Nomonhan by Soviet tanks because the military leaders though they were assured of victory because they had been given a blessing by the Emperor.