After the war with the Japanese ended, Chiang Kai-shek quickly moved KMT troops to newly liberated areas to prevent Communist forces from receiving the Japanese surrender. The US airlifted many KMT troops from central China to the Northeast (Manchuria).

Using the pretext of "receiving the Japanese surrender," business interests within the KMT government occupied most of the banks, factories and commercial properties, which had previously been seized by the Imperial Japanese Army. They also conscripted troops at an accelerated pace from the civilian population and hoarded supplies, preparing for a resumption of war with the Communists. These hasty and harsh preparations caused great hardship for the residents of cities such as Shanghai, where the unemployment rate rose dramatically to 37.5%.

The US strongly supported the Kuomintang forces. About 50,000 US soldiers were sent to guard strategic sites in Hebei and Shandong in Operation Beleaguer. The US equipped and trained KMT troops, and transported Japanese and Koreans back to help KMT forces to occupy liberated zones as well as to contain Communist-controlled areas. According to William Blum, American aid included substantial amounts of mostly surplus military supplies, and loans were made to the KMT. Within less than two years after the Sino-Japanese War, the KMT had received $4.43 billion from the US—most of which was military aid.