Now two parallel governments began to work in China:

(i) Democratic government of Nanking.

(ii) The Manchu Government of Peking.

Election of Dr. Sun Yat Sen to the post of President disturbed the entire situation and there remained no chance for the appointment of Yuan Shi Kai as the President and the talks which were going on between the revolutionary government and the Peking government ended in smoke.

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The main string of Manchu government was in the hands of Yuan Shi Kai, so he decided to crush the Nanking government but both the groups were not prepared for war. Foreign interference and limited resources were the obstacles in the way of testing their power.

The revolutionary government was of the opinion that the Manchu rule had become so much corrupt that it was not possible to bring them back to power. Later on Yuan Shi Kai also accepted it and concluded a pact with the revolutionary government on 12th February 1912.

According to this pact a republic was established in China in place of Manchu rule. Royal palace for the residence and an annual pension for the maintenance of the Manchu dynasty were granted.

The responsibility of organisation of the new government was given to Yuan Shi Kai. Dr. Sun Yat Sen resigned from the post of President in order to make this pact a success. Consequently the revolutionary leaders appointed Yuan Shi Kai, as the President of the Chinese Republic.

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Thus Manchu dynasty after ruling for about thirty years ended. Among the countries of Asia China was the first country which following the policy of France established Republic in place of Aristocracy in the 20th century. Thus the significant chapter of Chinese revolution of 1911 came to an end.