Opium trade in Yan'an Soviet

[3] According to Taiwanese historian Chen Yung-fa, from 1941 to 1945, around 40% of the financial income of the Communist China was from opium trade,[3] although the CCP strictly banned its consumption within their territory.

[1] The CCP started its plantation of opium in 1941, which was accompanied by strict bans on its sales and consumption within their controlled territories, as insisted by Mao Zedong.

[5] The opium was concealed in items such as salt, liquor bottles, and saddles, and was transported either under the escort of local Communist military forces or by the merchants themselves.

The Communists deliberately turned a blind eye to how these merchants managed to bypass Nationalist officials and military forces stationed at the border.

[5] In 1946, the widespread printing of currency led to hyperinflation, prompting the Communist government to actively promote the opium trade as a means of economic support.

By 1948, due to the severe devaluation of paper money caused by hyperinflation, the opium trade transitioned to being conducted through bartering goods instead of using currency.

By this time, the financial needs of the Yan'an Soviet were sufficiently met through other sources of funding from the Communist regime, leading to the prohibition of the opium trade.

On 2 August 1942, Vladimirov recorded an incident where he asked Mao Zedong why the CCP military was involved in opium production despite earlier restrictions.

Among these is a report on opium cultivation in the Yan'an Soviet, which was compiled based on field investigations conducted by the Nationalist government's anti-drug agency.