Describe the extent of japanese influence in china in 1938

The years between 1912 and 1938 were filled with upheaval in China. It was marked by the driving out of many of the foreign people there because it was believed they were a bad influence.
The Japanese were still in the beginning of the Sino-Japanese War in 1938, and they had recently taken the KMT (The Chinese Nationalist Government is the KMT) capitol of Nanking as well as Shanghai. At this point, the Japanese were making quick work of the Chinese army with their highly industrialized military and basically un-opposed air superiority. Japan also had a puppet regime in Manchukuo (formerly and currently known as Manchuria, the Northern section of China) and had established the deposed Qing Dynasty emperor, Puyi, as their token ruler. 
During this time, Japan ratified a puppet regime in the Northern section of China known as Manchuria. The Japanese elected Puyi, the dethroned Emperor of the Qing Dynasty, as their leader.