When Chiang forced the French to give the French concessions in Shanghai back to China in exchange for withdrawing from northern Indochina, he had no choice but to sign an agreement with France on 6 March 1946 in which Vietnam would be recognized as an autonomous state in the Indochinese Federation and the French Union. The agreement soon broke down.
Prior to giving control to Communist leaders, on March 27 Soviet diplomats requested a joint venture of industrial development with the Nationalist Party in Manchuria.