into the greatest industrial center in the Far East, had escaped any large scale descruction until the Soviet invasion in the final week of the war. The Red Army rapidly overran Japanese forces, commencing a 3-month occupation defined by systemic campaign of looting and destruction. Soviet Premier Josef Stalin ordered all equipment, moveable parts, tools and even material wealth plundered from private homes, shipped back to the USSR, what could not be pillaged was to be destroyed. When the Soviets withdrew in October, the result was near total. What had been China's industrial epicenter was reduced to rubble, virtually all factories had been destroyed, not a single mine was operational. Manchuria had been stripped of virtually all heavy machinery and was left without even electricity as the Soviets had dismantled or destroyed all power plants, even removing the turbines from dams. The war brought about a massive increase in government control of industries. In 1936, government-owned industries were only 15% of GDP. However, the ROC government took control of many industries in order to fight the war. In 1938, the ROC established a commission for industries and mines to control and supervise firms, as well as instilling price controls. By 1942, 70% of the capital of Chinese industry were owned by the government. Inflation spiraled during the war. The ROC government's tried unsuccessfully to curb inflation with the introduction of new currencies and failed attempts in both 1942 and 1943 to institute a general price freeze. The efforts at price controls failed because China's agricultural economy was very concentrated, industry was declining, and exchange rates collapsing. The result was that suppliers did not ration at stable prices, shopkeepers used their supplies for speculation, and “[e]ven productive enterprises turned from new output to speculating on stocks, while disinvestment and capital flight further undermined the production capacities.” Hyperinflation, civil war and the relocation of the republic government to Taiwan Following Japan's unconditional surrender to the allies in 1945, Chiang regained most the territory China lost in both the First and Second Sino-Japanese wars, including Taiwan where unlike the other areas to fall under foreign occupation, the Japanese (intending to eventually annex the island) left a modern educational system and economy. Chiang and the KMT then renewed their struggle with the communists. However, the rampant corruption of the KMT, hyperinflation from the over issuing of currency and the drain on the civilian population