The uneasy alliance began to break down by late 1938. Starting in 1940, open conflict between Nationalists and Communists became more frequent in the occupied areas outside of Japanese control, culminating in the New Fourth Army Incident in January 1941.
Continued antipathy between Chinese communist and nationalist forces culminated in armed clashes in January 1941, effectively ending their co-operation. New Fourth Army incident was argued as a punishment of Communist insubordination and Nationalist treachery.
Thai military successes were limited to the Cambodian border area, and in January 1941 Vichy France's modern naval forces soundly defeated the inferior Thai naval forces in the Battle of Ko Chang. The war ended in May, with the French agreeing to minor territorial revisions which restored formerly Thai areas to Thailand.