of withdrawing, Japan invaded French Indochina in 1940–41. In response, the U.S., Britain and the Netherlands cut off oil imports in 1941, which accounted for over 90% of Japan's oil supply. Negotiations with the US led nowhere. Japan attacked U.S. forces at the Battle of Pearl Harbor in December 1941, triggering America's entry into World War II. Japan rapidly expanded at sea and land, capturing Singapore and the Philippines in early 1942, and threatening India and Australia. Although it was to be a long and bloody war, Japan began to lose the initiative in 1942. At the Battle of the Coral Sea, a Japanese offensive was turned back, for the first time, at sea. The June Battle of Midway cost Japan four of its six large aircraft carriers and destroyed its capability for future major offensives. In the Guadalcanal Campaign, the U.S. took back ground from Japan. U.S. occupation of Japan After its defeat in World War II, Japan was occupied by the U.S. until 1951, and recovered from the effects of the war to become an economic power, staunch American ally and a liberal democracy. While Emperor Hirohito was allowed to retain his throne as a symbol of national unity, actual power rests in networks of powerful politicians, bureaucrats, and business executives. Cold War The Japanese growth in the postwar period was often called a "miracle". It was led by manufacturing; starting with textiles and clothing and moving to high-technology, especially automobiles, electronics and computers. The economy experienced a major slowdown starting in the 1990s following three decades of unprecedented growth, but Japan still remains a major global economic power. The Chinese Civil War resumed after World War II concluded. In 1949, Mao Zedong proclaimed the People's Republic of China and the Republic of China, which had governed mainland China until this point, retreated to Taiwan. Since then, the jurisdiction of the Republic of China has been limited to the Taiwan Area. After the surrender of Japan, at the end of World War II, on 15 August (officially 2 September) 1945, Korea was divided at the 38th parallel into two zones of occupation. The Soviets administered the northern-half and the Americans administered the southern-half. In 1948, as a result of Cold War tensions, the occupation zones became two sovereign states. This led to the establishment of the Republic of Korea in South Korea on 15 August 1948, promptly followed