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Iron ores have been worked at An-shan since the 10th century, but the modern discovery was by the Japanese in 1909. The South Manchurian Railway company began steel production there in 1919 and steadily expanded its capacity. An-shan contributed large quantities of iron and steel to the Japanese war effort between 1940 and 1945. Soviet Russia stripped the installations after World War II, but the Chinese Communists had restored them by 1952. Continuous expansion occurred after 1952 and by 1956 An-shan was China's primary iron and steel producer.
An-shan was occupied in 1945 by the Soviet Army, which immediately began the systematic dismantling and removal of power-generating and transforming equipment, electric motors, the newest and best machine tools, experimental plants, laboratories, and hospitals.
His example was the Chinese side agreeing to joint enterprise management of mines whose output was small "and their equipment, inadequate" but omitting the giant An-shan iron mine, which was tantamount "to refusing to manage jointly with the Soviet Union the iron and steel enterprises of the Northeast."
Some seventy miles to the west at a place called An-shan, General Chin Chʻang, the overall commander of Chinese forces in southern Manchuria, built up a force estimated at 50,000 while sending thousands more to fight as guerrillas along the railroad. They were ordered to do as much damage as possible before falling back toward An-shan, drawing the Russians with them.