The Mandhurian crisis of 1931-33 showed the uselessness of the 1920s agreements on peace, non-aggression and disarmament in the face of a power determined to move forward. Reactions such as the Stimson doctrine of non-recognition have also had little effect. In the years following the crisis, changing alliances, economic necessities and changed policies would lead to a Sino-Japanese war. This doctrine of non-recognition proved incredibly ineffective in the face of Japanese aggression and expansion. Japan had extended its influence in Manchuria for years and had now officially controlled the region. In addition, after the successful conquest of Manchuria in 1932, the Japanese attacked the city of Shanghai. Since Shanghai was home to China`s largest international colonies, the sudden invasion also threatened foreign concessions. Stimson responded to this development by stating that the United States would no longer be bound by the naval limitation agreements due to Japan`s violation of the Nine Powers Treaty. This meant a potential new naval arms race in the Pacific, which would inevitably attract the Japanese, but it did not change the situation in Manchuria. Throughout the early 20th century, the Japanese had retained special rights in Manchuria, and they felt that territorial neutrality was necessary to defend their colony in Korea. So they were alerted when their position in Manchuria was threatened by the increasingly successful unification of China in the late 1920s by Chinese nationalist leader Chiang Kai-shek (Jiang Jieshi), while Soviet pressure on Northern Manchuria increased.
In response to this pressure, officers of the Japanese Kwantung Army (Guandong), stationed in Manchuria, launched an incident in Mukden without the consent of the Japanese civilian government. Thus, in 1933, the League failed to protect China from aggression, the failure of the Conference on Disarmament and the withdrawal of Japan and Germany. It also saw the collapse of another major company, the World Economic Conference of June 1933. From the beginning, the League had attached great importance to the work of its economic and financial organization. Their first major conference on this subject (Brussels, June 1920) had indeed preceded the first assembly. It then followed an upward curve for several years. After playing an important role in restoring some stability to European currencies, it turned to the deeper economic problems. The first world economic conference, held in 1927, ended with a unanimous report that described the need for a freer and fuller flow of international trade, the obstacles that hindered it and the measures necessary to achieve it. Over the next two years, great strides have been made in implementing their recommendations. But all this failed in the economic storm when each country tried to protect its own economy through tariffs, quotas and bans. The plans and conventions drawn up in Geneva, including Briand`s plan for the United States of Europe, were swept away.
The conference ended in a quick and almost total failure. On December 28, a new government was formed in China after the resignation of all members of the former Nanjing government. This plunged the military command into turmoil, and the Chinese military retreated south of the Great Wall in Hebei province, a humiliating step that lowered China`s international image.  Japanese troops occupied Chinkhov on January 3, 1932, after the Chinese defenders withdrew without a fight. Events occurred in the 1930s, challenging all of these policies. .