The Republic of China under Dictator/General Chiang Kai-shek is a torn Land, in more than one way. Ideologically, the Communists under Mao Tse-tung want a Revolution (even after they lost more than 90% of their force during the Long March); imperial(ist) Japan already separated Manchuria and turned it into its puppet state of Manchukuo, and openly leads war against China since occupying Shanghai in 1937; and moreover, there are warlords in many Provinces, over which Chiang Kai-shek has barely any control. No earlier than 1930, the Nationalist government was nearly bankrupted by the Central Plains War.
Already many big cities like Peking, Tientsin, and the old capital of Nanking have been lost to the Japanese. In the latter, then the Rape of Nanking happened, during which the Japanese murdered ten thousands, if not hundreds of thousands of Chinese. Only thanks to John Rabe, head of the International Committee for the Nanking Safety Zone - that despite him being a convinced Nazi! - some hundreds of thousands of Chinese could be saved. The country's capital had to be moved twice after this, first to Wuhan, then to Chungking. And on the 20th of March 1940, Japan established in the old capital the "Reorganized National Government of the Republic of China" under their collaborator Wang Ching-wei, which controls an area of 1,264,000 sq km.
Theoretically China has Troops of several Million Men against somewhat more than a Million Japanese available, but in Practice they're lacking tanks and other vehicles, and many Troops just exist on Paper. Army and Bureaucrats are corrupt, nobody who has money has to fight, and many Chinese desert because of draconic punishments (disobedience can be punished by cutting off the ears). Only rarely, like 1939 at the defense of Changsha, the Chinese were able to defeat the Japanese. Many Chinese are so desperate they commit suicide attacks against the Japanese.
After the defeat of France in June 1940, the Situation became even harder, since Japan took over the control of the border to French Indochina and also blocked the transit of weapons via Hong Kong.
