The Original Sin of the Kuomintang#

If we view the Kuomintang as a company, its mission and the four rounds of financing it experienced both contributed to its success and planted the seeds of its failure.

Undoubtedly, the Kuomintang had ideals when it was first founded. However, the "equalization of land rights" in its program destined it to violently violate some people's property rights. This program, based on the concept of "equality of outcomes," violated the economic common sense of private ownership and resulted in its inability to gain unanimous social recognition. The concept of "freedom" is clear, such as the freedom to buy and sell real estate, to dispose of property, etc. But the concept of "equalization" or "equality" is vague—radical equality can lead to people's communes like the Communist Party, while moderate equality can involve the state buying some land and limiting land prices like the Kuomintang. This conceptual ambiguity inevitably led to theoretical and practical disagreements, and also left great room for corrupt power operations.

First Round of Financing: Soviet Russia#

The alliance with Russia and admission of Communists introduced tens of millions in Soviet funding and weapons, laying the foundation for the victory of the Northern Expedition, while also planting the seeds for future Communist infiltration and subversion.

Second Round of Financing: Jiangnan Capitalists#

After realizing the threat of Soviet funding, Chiang Kai-shek actively sought new investors. Through geographical connections, he found Jiangnan capitalists led by Ningbo merchants, and secured substantial financial and personnel support by painting grand visions. However, for short-term interests, he did not hesitate to betray his financial backers, suppressing commercial freedom, seizing merchants' property, dissolving the Shanghai Commercial Federation, and destroying private ownership and social contracts under the pretext of revolutionary necessity, losing the full support of the commercial associations.

Third Round of Financing: Nationalism#

After basically controlling China, the Kuomintang vigorously promoted nationalism from the Three People's Principles, becoming the interest representative of the "Chinese nation." The originally planned trilogy of "military government," "tutelage," and "constitutional government" remained stuck at the first two stages. The Kuomintang deliberately cultivated the concept of "Greater China" nationalism, causing people to temporarily ignore its lack of true rule of law and focus on the grand visions of "national industrial construction" and "national prosperity and strength." Ultimately, the extreme nationalism accelerated the deterioration of relations with Japan, leading to profound national disaster.

Fourth Round of Financing: Europe and America#

Through the relationships of the Song and Kong families with World War II allies, the Kuomintang obtained substantial European and American funding, technology, and personnel support, making its prestige reach unprecedented heights after the victory of World War II. However, being overly dependent on external major shareholders with different ideologies and insufficient commitment also carried great risks. During the Chinese Civil War, this major shareholder—Europe and America—caused the Kuomintang to collapse due to their own interests and decision-making mistakes, leading to cash flow problems.

If there's anything to learn from the Kuomintang's history, it's that financing needs to be cautious and shareholders must be chosen carefully:

• Choose righteous and moral investors (rather than nouveau riche like Soviet Russia)

• Reward good investors (rather than repaying kindness with enmity like with the Jiangnan capitalists)

• Always adhere to the company's principles (rather than using transition periods or immature timing as excuses to delay constitutional government)

• Balance the risk of shareholder divestment (rather than being at a loss after American support was withdrawn)