People’s Republic of China state institutions Maoism China China 1901.8.26.–1972.1.6. ○ Natural causes

The poet-marshal who led the New Fourth Army and the Third Field Army and succeeded Zhou Enlai as foreign minister

Wounded and besieged on Meiling in the winter of 1936, Chen Yi wrote three poems as his dying words, hiding them in his clothes: "I go to the Springs to muster my old troops, a hundred thousand banners to behead the King of Hell."

From Sichuan, he joined the party after work-study in France and with Zhu De led the remnants of the Nanchang Uprising to Jinggangshan. He stayed behind on the Long March to fight three years of guerrilla war in the south and became acting commander of the New Fourth Army after the 1941 incident. In the civil war he commanded the East China (Third) Field Army at Huaihai and took Shanghai, becoming its first mayor. A marshal in 1955 and foreign minister from 1958, he ran China’s Bandung-era diplomacy in Asia and Africa. Attacked in the “February Countercurrent” of 1967, he died of cancer in 1972; Mao attended the funeral.

Also known as: Ch’en Yi

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Related historical events

Mayor of Shanghai: Stabilizing the City's Currency and Markets

The Shanghai People's Government was established on 28 May 1949 with Chen Yi as its first mayor. Before entering the city he laid down the discipline that "the army does not enter private homes" (軍隊不入民宅), putting the takeover of urban administration and economic management ahead of military occupation. The city's problems, however, were larger than its capture.

Shanghai was awash in the already defunct gold yuan, while silver dollars, gold and foreign currency had become the de facto means of payment. On 28 May 1949 the Military Control Commission declared the Renminbi the only legal currency, banned the gold yuan after 5 June, and exchanged it at one Renminbi to 100,000 gold yuan. When carters and street peddlers were left with small-denomination notes, Vice-Mayor Zeng Shan appealed to Mayor Chen Yi, who relaxed the minimum denomination for exchange.

The central problem was silver. Between 1 and 10 June 1949 the black-market price of the silver dollar tripled, and at its height the Renminbi was rejected or only partially accepted in the wholesale market. At an East China Bureau meeting on 7 June with Deng Xiaoping, Liu Bocheng and Rao Shushi, Chen Yi decided to seal the Shanghai Securities Exchange, the centre of silver speculation; he reported the decision to the CCP Central Committee by telephone and Mao Zedong approved it twelve hours later. In the dawn operation of 10 June, 2,100 people were screened and 238 chief speculators detained. The next day the silver dollar fell from 2,000 to 1,200 to the Renminbi and rice prices dropped about a tenth.

Once currency speculation was checked, speculative capital moved into grain, cotton yarn and coal and drove prices up again: the campaign known as "two whites and one black" (rice, cotton yarn, coal). Here Chen Yi's political authority as mayor combined with the market interventions directed by Chen Yun, head of the Central Finance and Economic Commission, to calm prices. Shanghai's experience in the summer of 1949 showed that taking a city militarily and running its economy were distinct tasks.