 At the start of 1938, the leadership in Tokyo still hoped to limit the scope of the conflict to occupy areas around Shanghai, Nanjing and most of northern China.They thought this would preserve strength for an anticipated showdown with the Soviet Union, but by now the Japanese government and GHQ had effectively lost control of the Japanese army in China.With many victories achieved, Japanese field generals escalated the war in Jiangsu in an attempt to wipe out Chinese resistance, but were defeated at the Battle of Taierzhuang (March–April 1938).