Confidence in the government falls and the national will goes to level 3, the loss of Shanghai obviously having a great psychological impact on the chinese people.
Japanese Player Turn
Numerous attacks occur along the Kwo River front, but low density of units results in nothing significant occurring (any advance on this avenue seen as really leading no where strategically) In Kaingsu, SNLF units land at Nantung and assualt the fortress at Chaingyin, both fall due to the superior IJN NGS. A handful of EX and HX attacks occur in the region, bringing the Japanese to the Grand Canal line and past Tai Hu. Tungshan falls and motorised/mechanised units sprint towards Pengpu to try and cross the river before the dams in the north are blown.
Chinese Player Turn
A 3-5 XX and assorted trash (including the CA armoured units) are rushed to Pengpu to block the Japanese thrust. Eastern Kiangsu is abandoned north of the Yangtze as CA forces fall back to Kiangfu and the favourable river/irrigation intensive terrain. Taihsien and Jukao are abandoned, with troops pulling out to the curses and cries of local residents. Unfavourable press coverage reports the retreat as a rout. Further north, MNF, Hunan, Kweichow and Szechuan troops position themselves ready to be in perfect positions to advance to the new Hwang Ho river line when the dams are destroyed. At the Kwo river, MNF/CA forces remain stoically in position.