The industries in the Nationalist Zone was reduced to 10% before the Sino-Japanese war, thereby losing the basis to be self-sufficient in industrial goods. Thus, the Nationalist Zone had to depend on imported goods to make up for deficient supplies which led to the expansion of imports. However, the export had been declining in consideration of the exchange rate. After the war, America was forming an ever-greater part of the import in the Nationalist Zone, and South East Asia were beginning to represent an increasing share of the economy. But the trade with Japan was almost brought to a halt. The foreign trade structure in the Nationalist Zone had kept the wartime trade basis of importing war supplies and daily necessity and exporting agricultural and marine products. Owing to the war, it was divided into the Nationalist Zone and Japanese Occupied Territory, resulting in the change of the center of foreign trade. Shanghai which suffered a direct loss of the war was replaced by Guangzhou as the center of foreign trade. However, as Guangzhou was occupied by Japan, Shanghai recovered the role as the center foreign trade. After the Pacific War, Shanghai fell into the hands of Japanese armies and Japanese armies imposed a blockage of the coastal provinces in China, the Nationalist Zone had lost a major foreign trade route. Kunming, the only channel of foreign trade in the Nationalist Zone, served as the center of foreign trade albeit restricted, and foreign trade centers were diversified and small-scale trade was carried out there. After the Sino-Japanese war, the Nationalist Government of China suffered a tight financial situation and the foreign trade routes were restricted from a blockage of Japanese armies. The Nationalist Government of China needed desperately the expansion of foreign trade to address the tight financial situation and to secure foreign trade routes. Accordingly, the trade policy of the Nationalist Government of China was aimed at, on the one hand, stabilizing the economy of the Nationalist zone by acquiring necessary supplies and foreign exchange to continue the war against Japan and on the other hand lowering Japan`s capability of conducting the war by limiting the export to Japan. The Japanese army restricted the movement of supplies to isolate the Nationalist Government of China and were committed to cutting off smuggling routes. Thus, the Nationalist Government of China made a detour of Japan`s blockade or created new trade network consistently, even importing supplies from Japan. In times of the Sino-Japanese war, the controlled trade policy of the Nationalist Government were implemented inevitably to utilize effectively the limited supplies during the war. However, the controlled trade policy of the Nationalist Government was not performed only in the Nationalist zone, not the Japanese occupied area, therefore, only the exporter and importer in the Nationalist zone suffered a losses discriminatorily. In addition, the organization to manage this was not established and thereby was not performed effectively. Furthermore, inflation and the controlled policy resulted in the adverse effect of the decline in the value of the legal tender and excessive concentration of currency which placed a big burden on the Nationalist Government.