Following years of escalating conflict in the Second Sino-Japanese War, the Japanese military sought to strengthen its control over occupied areas of China by establishing a puppet state. On March 30, 1940, the city of Nanking was designated as the capital for a new Chinese government that was effectively a collaborative regime functioning under Japanese influence. This government was headed by Wang Jingwei, who had previously served in the Nationalist government but shifted allegiance to cooperate with the Japanese occupiers. Wang's appointment was part of Japan's broader strategy to undermine the legitimacy of the Nationalist government led by Chiang Kai-shek, which had been struggling against both internal dissent and external invasion.

The newly formed government was presented to the public as a representative administration, albeit it lacked genuine autonomy and power as it operated under Japanese military oversight. The establishment of this regime faced significant opposition from Chinese nationalists and the populace, who viewed it as a betrayal. Additionally, the Japanese aimed to use this government to promote policies that would facilitate their economic and military goals in China, enhancing resource extraction and bolstering their military presence in the region.

As the war progressed, the puppet regime struggled to garner significant support, operating in the shadow of the ongoing conflict. Despite attempts to project an image of legitimacy and independence, the Wang Jingwei-led government was largely viewed as a symbol of collaboration and failure. This marked a significant chapter in the complex relationship between Japanese imperial ambitions and Chinese sovereignty during the war and would influence Chinese politics even after the conflict.