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In the Chinese civil war, the communists had a superior strategy of guerrilla warfare, ability to win the hearts of and extract resources (as well as intelligence) from the people in the countryside and better discipline in the party. The nationalists over-spread their forces, concentrated on holding important cities (to which they were later surrounded, their weapons being taken by the communists and troops being assimilated to the Red Army). The nationalists had weapons and equipment from the US, but they failed to use them effectively; the communists had equipment taken from the defeated Japanese in the north (as well as the nationalists). The nationalists mis-administered areas under their control, alienating most of the population, resulting in corruption and having huge inflation.

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