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In page Second Sino-Japanese War:

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By 1941, Japan had occupied much of north and coastal China, but the KMT central government and military had retreated to the western interior to continue their resistance, while the Chinese communists remained in control of base areas in Shaanxi. In the occupied areas, Japanese control was mainly limited to railroads and major cities ("points and lines"). They did not have a major military or administrative presence in the vast Chinese countryside, where Chinese guerrillas roamed freely.[citation needed]