- In December, the US Ambassador to China, General George Marshall (picture) declines tomediate between the Nationalists and Communists in the civil war.
- Harbin falls to Nationalists on June 5. The rest of the Communists including Lin Biao is captured.Xu Xianqian and He Long are captured at Shanxi. Mao Zedong, Zhou Enlai captured in Yianan. Mao andZhou are tried and executed while the rest were put in lengthy sentences.
- the last Communists including Zhu De and Pend Dehui were captured in northern Jiangsu region.The first National Congress is convened in Nanking (as in OTL) on 25 December.
- Chiang Kai-shek (picture) elected President (with Li Zhongren as Vice-president) and nominatesChen Jitang as the Premier. Hyperinflation is controlled at 25% with Chiang Ching-kuo's acts to controlfinancial security. Two battlions of Central Nationalist elite forces in Northeastern China are moved toHunan and they queshed the forces of Tang Shengzhi. Chiang announces all villages in counties andzones in cities are to be directly elected immediately.
- the last of the Communists in Guangdong, along with Ye Jianying, was captured in March. Chiangremoves Lung Yun and Lu Han as Provincial Governors and removes the battalions from Yunan,Guizhou, and Sichuan to Jiangsu and Zhejiang. Li Zhongren dissents and conspires with Bai Chongxi,