The Chinese Nationalist forces have pulled back from the coast, yet are determined to establish their own Maginot Line. But as both sides have reinforcements in route, the fighting around Shanghai will continue. Thus giving the world, its first large clash, using modern weapons within a civilian population, five years before Stalingrad.
It’s the beginning of the end for the Allied defense of Burma. While Gen. Slim’s men are pushed back, their Chinese Allies in the Shan States of attacked and scattered. Their only hope of survival is to head back home. Another seemingly Japanese victory.