The Rise of Communism in China∗ Ting CHENy James Kai-sing KUNGz This version, December 2020 Abstract We show that the Chinese Communist Party (CCP) experienced significantly faster growth in counties occupied by the Japanese Army than those garrisoned by the Kuomingtang (KMT) during the Sino-Japanese War (c. 1940-45), using the density of middle-to-upper rank Communist cadres (5.4%) and the size of the guerilla base (10.3%) as proxies. The struggle for survival and humiliation caused by wartime sex crimes are the channels through which the CCP ascended to power. We also find that people who live in former Japanese- occupied counties today are significantly more nationalistic and exhibit greater trust in the government than those who reside elsewhere. Keywords: Communist Revolution, Peasant Nationalism, Struggle for Survival, Humilia- tion and Hatred, Puppet Troops, China JEL Classification Nos.: D74, F51, F52, N45 ∗We thank seminar participants at the Chinese University of Hong Kong, the Hong Kong University of Science and Technology, and National University of Singapore for helpful comments and suggestions. James Kung acknowledges the financial support of the Research Grants Council (RGC) of Hong Kong (GRF No. 17505519) and Sein and Isaac Soude Endowment. We are solely responsible for any remaining errors. yTing Chen, Department of Economics, Hong Kong Baptist University, Renfrew Road, Hong Kong. Email:
[email protected]. Phone: +852-34117546. Fax: +852-34115580. zJames Kai-sing KUNG, Faculty of Business and Economics, University of Hong Kong, Pokfulam Road, Hong Kong. Email:
[email protected]. Phone: +852-39177764. Fax: +852-28585614. 1 Introduction \Precisely because of the Japanese Imperial Army, which had occupied a large part of China, making Chinese people nowhere to go; once they understood, they began taking up arm- struggle, resulting in the establishment of many counter-Japanese military bases, thereby creating favorable conditions for the coming war of liberation.