With the end of Anti-Japanese War, Chiang Kai-shek prepared to restart civil war. But pressure from home and abroad asking for peace forced him to adopt a policy of "Phony Peace and Real Civil War". In August 1945, Chiang invited leaders of the CPC to Chongqing, ostensibly to discuss the issue of domestic peace. His real intension was to impose the war responsibility on the CPC if they failed to show up in the negotiation, or to force the CPC to hand over their army and political power in the liberated areas if they enteren into the negotiation.

Mao Zedong, Zhou Enlai, Wang Ruofei and other leaders of the CPC went from Yan'an to Chongqing on August 28th, 1945, and began Chongqing negotiations. The representatives of the KMT were Wang Shijie, Zhang Zhizhong and Shao Lizi.

The negotiations lasted 43 days. The CPC representatives argued the principle of peaceful construction of the country, i.e. to resolve against civil war, to unite the whole country based on peace, democracy and solidarity, and to establish an independent, free and prosperous China. Chiang Kai-shek agreed to end the despotism, to convene a consultative conference of all political parites, to guarantee democracy, freedom, and the equal, legal status of all political praties. Finally, Chiang published the Summary of Talks between the CPC and the KMT Representatives on October 10th, hence the name, the "Double 10 Agreement".

However, there still remained sonsiderable disputes over the liberated areas and the armed forces of two sides. The delegation of the CPC demanded legal status for the people's army and the democratic government of the liberated areas, while Chiang demanded that the CPC surrender army and the liberated areas. In order to achieve peace, the CPC delegation made condessions by reducing the People's Liberation Army to 24 divisions on condition of an overall reduction of armed forces in China, and by retreating from eight liberated areas, including those in Guangdong and Hunan.

These negotiations forced Chiang to agree to the political agenda of peaceful construction of the country. The KMT's strategy of "Preparing for War Under Phony Peace" was exposed. The CPC gained the political initaitive while the KMT went into political isolation.