Thusly, communist forces gain much less sympathy among the Chinese people.
Um... More people survive=less food=MORE communist moods.
Nationalist forces retain control of China, whilst communists are stranded on Hainan.
HOW will they wind up THERE? Also, the communists only took over China AFTER the war: at that point they were still retreating. Northwards. If you want a surviving nationalist China, then its probably more of a China Proper (most of it?)
The Chinese fight against the invading Japanese forces much more successfully, but still ultimately meet defeat. America and Britain give tons of aid to the fledgling democracy that is China after the war, and the rebuilding process begins.
I doubt it will be a "fleding democracy". More of a military dictatorship, much like with a victorious White Russia. Also, China would probably fare WORSE against the Japanese, as instead of an unified and determined communist movement we have plenty of warlords in the north and a disliked Chiang Kai-Shek in the south who probably will sit back and procrastrinate, knowing that he can't do anything serious against Japan anyhow.
The Korean War happens, but where Chinese forces were the deciding factor in turning back the American offensive in our timeline, they aid the American advance near the end of the war. Korea is unified under a democratic banner.
I don't think they will dare as much. No Communist China=Soviet Manchuria=No American offensive into North Korea.
Anyhow, the communists were much better in that they had a very clear and eventually accomplishable program - much better then Chiang-Kai's abstract "democracy" that he wasn't even going to try to carry out.
Vietnam and the rest of South East Asia also go much differently. Communist rebellions are put down by the French with help from willing Chinese and American allies. Vietnam attains independence under a democratic government July 3rd, 1960. Laos and Cambodia follow shortly thereafter.
Again, how the hell will they get democracy there?! Anyhow, the Chinese wouldn't care because a communist Vietnam is useful as a bargaining card with the USA. And by then, there was a major and popular communist guerrila movement against Japan. I suspect that if USA, even with French (?! They already gave up on Indochina by then) and Chinese help, will bog down in a major guerrila war, perhaps even worse then in OTL.
The PoD you would probably want is the Great March (?) not succeeding. Soviet alliance with Nationalist China continues. Maybe (unlikely) the Soviets will follow up Nomonhan, crashing into Manchuria and Korea before the Japanese can react properly. If so, its a completely different story. If not, after USSR enters the war in the far east, it seizes Manchuria and Sinkiang (and possibly Korea as well - note that both Korea and Manchuria, knowing Stalin, will be independant but Port Arthur will probably not be given back to Manchuria), establishes Chiang-Kai's "progressive" control over the rest of China. After Stalin's death, Khruschev as historically screws up everything, ruins relations with China. Cold War expands there. Probably with no Mao to increase disunity, the war will go on until now. Otherwise, today we will have two "North Korea"s in Korea and Manchuria, and a Kalmykistan in Sinkiang. Nationalists in China Proper will by then eventually have democratic reforms after Chiang dies, South-East is as in OTL though Vietnam possibly stronger due to a China that is too busy to attack it.