The economic relationship between the U.S. and China during the 1940s has long been neglected, with few scholarly works focusing on the period. This era was overshadowed by the political and diplomatic changes during and after the failure of the Nationalists in 1949. Without a close and insightful look into the reconstruction of China with American involvement during the late 1940s, one cannot identify the problems which led to the Nationalists" failure, nor can one answer the questions dealing with the impact of American economic policy toward China during that time.