The Republic of China, founded in 1912, was supposed to modernize the country and regain sovereignty. But by the beginning of the 1930s, China had degenerated into a fragmented country. Chiang Kai-shek, leader of the Nationalists and heir to the Republic of China, was fighting both warlords and Communists. In 1931, the Japanese seized control of Manchuria, where a substantial part of China’s industry was located, and breached the Great Wall.