[8] After the remarkable "26" coup, Tang Jiyao, then governor of Yunnan, was overthrown by Long Yun and his allies.
He prioritized textile export while reorganizing and developing production of tin ore, tungsten, antimonies, copper, salt, coal and other resources.
He worked to expand grain farming, reduce tax revenue and strived to achieve food self-sufficiency for all farmers.
Due to Long Yun's reforms, Kunming (capital of Yunnan) was commonly known as a "democratic fortress".
Factories, universities and government agencies were transplanted there from the coastal regions, and fresh manpower, capital and ideas poured into the province.
A major advance by the Japanese Army along the upper Salween River in 1942 was halted at Huitongqiao, near Tengchong, indicating the vital role that Yunnan played in the country’s defense.
[citation needed] Long was among the Nationalist government insiders implicated in corruption during the 1942-1943 American Dollar Bond scandal.
[9]: 73 The Nationalist government decided to use USD$200 million to absorb excess fabi in an effort to curb inflation.
[9]: 74 The result was a windfall for Nationalist government insiders including Long, Kung, members of the Soong family, Wei Tao-ming, and others.
When Chiang had retreated into western China, he was forced into an area barely under his control and hardly touched by the national revolution that had taken place after the fall of the Qing.
When Long Yun's turn came in 1945, he was caught by surprise: patriotically obeying Chiang's diversionary orders, a good part of his private army of over 100,000 men had marched far away, into Indochina.
After being removed from his reign of 18 years, and his meaningless appointment to a position in Chongqing, Long Yun escaped to Hong Kong at the end of 1948 and joined the Kuomintang Revolutionary Committee (KMT-RC), a KMT anti-Chiang organization.
[11] Later, during the Anti-Rightist Movement, Long Yun was labeled a rightist because of his criticism of Chinese foreign aid policy.
Long Yun refused to change his view and openly complained of his treatment for telling the truth.
In July 1980, nearly two decades after his death, he was finally fully "rehabilitated" in accordance with the Chinese government's policy of admitting the Anti-Rightist Movement had been wrong.