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Manchukuo was a Japanese puppet state in Manchuria and eastern Inner Mongolia ruled by the former Emperor of China Henry Pu-yi. It was created by Japan in 1932 because Japan wanted to occupy Manchuria's rich natural resources but did not wish to declare war on China yet. Most nations in the world did not recognize Manchukuo as a country. Manchukuo made its own money and it was called the Manchukuo yuan.