Biography in English

Chou Fo-hai 周佛海 Chou Fo-hai (1897-February 1948), helped to establish the Chinese Communist party, but resigned from it in 1924. He became the most widely read theoretical writer of the Kuomintang and served Chiang Kai-shek for many years, eventually becoming acting director of the Kuomintang department of propaganda. He also edited the New Life Monthly and founded the New Life Bookstore in Shanghai. Because he helped to establish Wang Ching-wei's Japanese-sponsored regime and held high office in it, he was imprisoned after the war as a "national traitor." Yuanling in western Hunan was the birthplace of Chou Fo-hai. His father, who had served with distinction in the Hunan Army during the Taiping Rebellion, died young, leaving his widow, two sons, and a daughter to be supported by some hundred mu of poor land. From 1912 to 1917 Chou attended higher primary school and middle school at Yuanling. He apparently married young, for by 1917 he was the father of a son and a daughter. Chou was a good student. In May 1917, just before his graduation, the principal of the Yuanling Middle School and Chou's classmates, knowing Chou's poverty and his talent, decided to send Chou to Japan for advanced education by making him a small gift. With this money, supplemented by a small loan from his relatives, Chou went to Japan, arriving at Tokyo in July. While he was studying Japanese and taking other preparatory courses at a private school, he participated actively in Chinese student activities. Sometime in 1918 he left Japan in protest of the Sino-Japanese agreements signed by the government of Tuan Ch'i-jui (q.v.) during the time of Allied intervention in Siberia. On the advice of an acquaintance, he went to Antung, on the Sino-Korean border, hoping to find work at a likin station. The station, however, was located on a desolate coast and could not possibly employ another worker. Despondent about his future, the penniless Chou even considered suicide. Finally, he borrowed some money for the trip back to Tokyo, where he studied furiously to prepare for the entrance examinations to the First Higher School. He passed the most difficult obstacle, the oral language test, by having someone proficient in Japanese prepare a report, which he memorized, on the Chihli-Fengtien war that was then going on in China. When the examiner asked him to discuss the war, as he had hoped would be the case, Chou gave an impressive performance. He was admitted to the school, which entitled him to a Chinese government grant, thus solving his educational and financial problems. After his graduation, he attended Kyoto Imperial University, where he studied economics and came under the influence of Professor Kawakami Hajime, the Marxist economist who translated Das Kapital into Japanese.

In July 1921, Chou was one of the dozen delegates to the First Congress of the Chinese Communist party, which was held in Shanghai. He represented Chinese students in Japan. Chou, who acted as secretary to the meeting, was elected vice chairman of the newly formed Chinese Communist party. During the short interval when he was in Shanghai, Chou also staged a whirlwind courtship of Yang Shu-hui, the daughter of Yang Cho-mao, a wealthy Shanghai merchant who had studied in the United States. She was a student in the Ch'iming Girls School when she fell in love with the impecunious Chou Fo-hai, who was already married. The strong-willed girl, despite her parents' precautions, eloped with Chou to Japan, where they lived in poor circumstances until Chou finished his studies in 1924. By then the Kuomintang and the Chinese Communist party had entered into their period of collaboration. In May 1924 Chou sailed directly from Japan to Canton, where the Kuomintang had set up a revolutionary government. There he taught at Kwangtung University and at the Whampoa Military Academy. According to Chou, he left the Communist party in the winter of 1924. In 1925 he published his Chung-shan hsien-sheng ssu-hsiang kaikuan [a general view of Sun Yat-sen's ideas], a book which attracted the attention of Chiang Kai-shek. In December 1925 Chou left Canton for Wuhan, allegedly because of his disapproval of Borodin's domination of the Canton government. He then spent several months teaching at Wuhan University and at Wuhan Commercial College. However, he was back in Canton in time to join the Northern Expedition, which set out in July 1926. After Wuhan fell to the Nationalist armies in October 1926, Chou was commissioned secretary general and, concurrently, head of the Wuhan branch of the Central Military Academy, of which Chiang Kai-shek was ex officio commandant and Teng Yen-ta (q.v.) acting commandant. Since both Chiang and Teng Yen-ta then were occupied with other matters, the actual administration of the academy at Wuhan fell to Chou Fo-hai. Later, Teng Yen-ta appointed Yun Tai-ying (q.v.), a Communist, as chiefpolitical instructor, and Yun took over practical control of the political department. Chou Fo-hai was then in a difficult position, since he was distrusted by both the Communists and the right wing of the Kuomintang. When the schism between Chiang Kaishek and the Wuhan government deepened, Chou decided to flee Hankow. In April 1927 Chiang Kai-shek established a government at Nanking in opposition to the Wuhan regime. Early in May, while the Communists were being purged in areas under the control of the Nanking government, Chou, accompanied by his family and his father-in-law, secretly left Hankow for Shanghai aboard a British vessel. His identity, however, was discovered by fellow Kuomintang passengers, who notified the Nanking government. As soon as he landed at Shanghai, Chou was arrested as a suspected Communist. Through the efforts of his wife and the mediation of influential friends, including Chang Chihchung, Quo T'ai-ch'i (Kuo T'ai-ch'i), and Tai Chi-t'ao (qq.v.), Chou was released after almost three weeks of incarceration.

Following his release, Chou was appointed by Chiang Kai-shek as chief political instructor at the newly organized Central Military Academy at Nanking. It was then that Chou began writing a book which was to become very popular in Nationalist China, the San-min-chu-i li-lun te Vi-hsi [the theoretical system of the Three People's Principles]. In August 1927 factional rivalry at Nanking led to Chiang Kai-shek's resignation. Chou Fo-hai left his post to accept a teaching position at National Chung-shan University at Canton on the invitation of Tai Chi-t'ao, who was then the chancellor. As a result of the recent Kuomintang purges, political conditions at Canton and at the university were extremely unsettled, and Chou Fo-hai left in the autumn of 1927 to go to Shanghai. There the Kuomintang launched a new political review, the New Life Monthly, which began publication in January 1928 under Chou Fo-hai's editorship. Ch'en Pu-lei, Ch'en Kuo-fu, Shao Li-tzu (qq.v.), and Tai Chi-t'ao also contributed to the magazine. Later Chou also founded the New Life Bookstore in Shanghai, which published his San-min-chu-i chih li-lun te Vi-hsi in April 1928. Chiang Kai-shek, who had returned from Japan to direct the second phase of the Northern Expedition, recalled Chou to active service, naming him director of the political department of the Central Military Academy. The Northern Expedition was successfully concluded in the summer of 1928 with the fall of Peking to the Nationalist armies. In July, Chou was a member of the entourage which accompanied Chiang Kai-shek to Peking to pay respects at the temporary resting place of Sun Yat-sen in the Western Hills. On his return, Chou resigned from the Military Academy at Nanking to resume work in Shanghai. In February 1929 Chiang Kai-shek summoned Chou Fo-hai to assist him at Nanking. When the Third National Congress of the Kuomintang was held in March 1929, Chou was made a delegate from the Philippines. He then accompanied Chiang in the brief campaign against the Kwangsi generals based at Wuhan. Chou then was appointed director of the office of political training in the department of general training of the Nationalist military establishment and, concurrently, director of the political department of the Generalissimo's headquarters.

In November 1931 Chou was elected to the Central Executive Committee at the Fourth National Congress of the Kuomintang. A month later Chiang Kai-shek was forced to resign in the wake of the Japanese invasion of Manchuria. Before leaving the government, Chiang put a military man, Ku Chu-t'ung (q.v.), at the head of the Kiangsu provincial government. Ku requested the appointment of Chou Fo-hai as a member of the Kiangsu provincial government council and as director of the department of education. Chou held these posts until 1933, when Ch'en Kuo-fu took over the governorship of Kiangsu. After returning to Nanking, Chou Fo-hai assumed the direction of the department of people's training of the Kuomintang and participated in the activities of the Blue Shirt Society, whose leaders were mostly former Whampoa cadets. In 1935 he was reelected to the Central Executive Committee of the Kuomintang. In January 1937 Chou Fo-hai and Shao Litzu were sent by the National Government to Hong Kong, where they welcomed Wang Ching-wei back from Europe in the spirit of national unity that followed the Sian Incident of December 1936. Not long afterward, the government was reorganized, and Chou was transferred to the vice directorship of the Kuomintang department of propaganda. In 1938 he was promoted to acting director of the department. During 1938 Chou continued to serve as an aide de camp in Chiang Kai-shek's headquarters and was responsible for the drafting of important documents. In view of Chou Fo-hai's close personal association with Chiang Kai-shek, his motives in turning to support Wang Ching-wei, a longtime political antagonist of Chiang, remain obscure. According to Chou's own account, he belonged at that time to the group known as the low-tune group, which included such figures as Hu Shih (q.v.), Mei Ssu-p'ing, and T'ao Hsi-sheng (q.v.). This group allegedly decried the high tune of those who demanded immediate resistance to Japan. After the outbreak of war in July 1937, Chou Fo-hai, as a leading propaganda official of the Kuomintang, had established the I-wen yen-chiu-she [literary research society] at Hankow, for the purpose of presenting China's case to the world. Chou was general director of the organization, and T'ao Hsi-sheng was general secretary. Since T'ao Hsi-sheng was an intimate friend of Wang Ching-wei, Chou Fo-hai came to know Wang's circle during this period. After the fall of Hankow and the evacuation of the National Government to Chungking, Wang Ching-wei became extremely pessimistic about China's chances for victory and favored the conclusion of a peaceful settlement with Japan. On 18 December 1938 Wang left Chungking. When Chou Fo-hai heard the news, he went after Wang on the pretext of inspecting Kuomintang affairs. Chou found Wang's party at Kunming and accompanied the group to Hanoi in French Indo-China. On 29 December 1938 Wang Ching-wei made his position clear in a public telegram to the National Government at Chungking. Early in 1939, while Wang was still at Hanoi, Chou Fo-hai went to Hong Kong. There, with Ch'en Kung-po, Lin Po-sheng, Mei Ssu-p'ing, and T'ao Hsi-sheng, he helped to conduct a propaganda campaign for Wang Ching-wei's peace movement in the Nanhua jih-pao. On 25 April 1939 Wang Ching-wei secretly left Hanoi for Shanghai on a chartered French vessel. He transferred to a Japanese ship off the Swatow coast and arrived at his destination on 6 May. Chou preceded Wang to Shanghai. In early April he met with a Japanese agent and proposed that Japan sponsor the establishment of a rival Chinese government at Nanking under Wang's leadership for the purpose of bringing the Sino-Japanese conflict to an end. Chou argued strongly for this course of action at a conference of more than 50 of Wang's supporters held at Shanghai. The conference did not come to a decision, but Chou's proposal was accepted by Wang Chingwei himself. On 4 June 1939 Wang took Chou Fo-hai and several close advisers to Tokyo for meetings with a Japanese group headed by Hiranuma Küchiro, who was then premier. The talks dragged on, and Wang returned to Shanghai on 24 June, leaving Chou to effect an agreement with the Japanese.

After the negotiations were completed, Chou Fo-hai returned to Shanghai, where he began preparations for the establishment of a new government under Wang Ching-wei. On 1 September 1939 Wang convened the so-called sixth national congress of the Kuomintang. That gathering elected Chou chairman of the financial and secret service committee. Later in September he participated in the Nanking conference at which Wang and the heads of the Japanese-sponsored governments at Peking and Nanking attempted to come to an agreement on the establishment of a central government under Wang. In November, Wang Ching-wei and the Japanese began formal negotiations concerning the Japanese-proposed Principles for the Readjustment of New Sino-Japanese Relations. Chou Fo-hai, Kao Tsung-wu (q.v.), Mei Ssup'ing, and T'ao Hsi-sheng were Wang Chingwei's representatives at the conference table. The negotiations were concluded on 30 December 1939. Wang's movement suffered a setback in January 1940 when Kao Tsung-wu and T'ao Hsi-sheng, who had been privy to the effort from the beginning, defected to Hong Kong with copies of Wang's secret agreement with Japan. This failed to deter Wang, although publication of the terms of the secret agreement created a furor in China. On 23 January 1940 Chou Fo-hai attended the Tsingtao conference as a member of the Wang delegation. That meeting worked out procedures for the nominal amalgamation of the Peking and Nanking regimes under Wang's proposed government. The conference ended on the 26th ; Chou flew to Japan on 28 January to discuss with the Japanese possible means of getting Chungking to end the war and future relations between Wang Chingwei and Chiang Kai-shek should peace become a reality. Back in Shanghai on 26 February, Chou began organization of the new government, which came into being on 30 March 1940. In his diary Chou Fo-hai stated quite accurately that he was the central figure in that undertaking. He occupied the following posts at Nanking: vice president of the executive yuan, minister of finance, minister of police, vice chairman of the military affairs commission, and general director of the central reserve bank. Since he also controlled the secret police and acted as chief negotiator with the Japanese, he was without doubt Wang Ching-wei's most powerful and versatile lieutenant. Chou reported that he was appreciative of Wang's personal warmth and of his complete trust, which was in marked contrast to the aloofness of Chiang Kai-shek.

Since Tokyo's original intention in supporting Wang had been primarily to force Chungking into entering peace negotiations, the Japanese government delayed granting formal recognition to Wang's government until all attempts to make peace with Chungking had failed. On 30 November 1940 Japan finally signed the Sino- Japanese Basic Agreement and exchanged ambassadors with Nanking. The agreement, contrary to what Wang Ching-wei and his followers had hoped, maintained strong Japanese control over the occupied territories. In an entry in his diary on 20 December 1940, Chou confessed that he had been mistaken in his view of Japanese intentions and that the advocates of resistance were right. When the Japanese began the War in the Pacific in December 1941, the Wang regime abandoned hope of inducing Chungking to accept peace conditions imposed by the Japanese. About that time Chou Fo-hai established contact with the Chungking authorities through two secret radio stations. One was in direct communication with the military intelligence service under Tai Li (q.v.) in Chungking; and the other maintained contact with the headquarters of the Third War Area commanded by Ku Chu-t'ung, Chou's former colleague in the Kiangsu provincial government. On 9 January 1943 the Wang Ching-wei regime declared war on the Allied powers. Japan reciprocated by replacing the offensive 1940 S
no-Japanese agreement with a more favorable treaty of alliance, which was signed on 30 October 1943. On 3 March 1944 Wang Ching-wei went to Japan for medical treatment, leaving the affairs of the Nanking regime in the hands of Ch'en Kung-po and Chou Fo-hai. After Wang died on 10 November 1944 at Nagoya, Japan, Ch'en Kung-po succeeded to his posts, while Chou took over the position of mayor of Shanghai which Ch'en Kung-po had formerly held. As the War in the Pacific entered the decisive stage and Allied landings on the China coast became a distinct possibility, Chungking reportedly gave Chou Fo-hai the task of coordinating anti-Japanese uprisings behind the Japanese lines in the event of Allied attacks on the coast. The atomic bomb and the Japanese surrender deprived Chou of the chance to prove himself, if indeed he actually had been given the assignment.

At the time of the Japanese surrender in August 1945, the National Government authorities at Chungking and the Chinese Communists both apparently made overtures to Chou Fo-hai. The Communist units commanded by Ch'en Yi (q.v.) had been steadily expanding their strength in east China during the war. Tai Li, however, struck a bargain with Chou to prevent the infiltration of Communist forces. On 14 August 1945, shortly after the Japanese surrender, Chou received an appointment from Chungking as commander of Nanking-Shanghai actions, with the mission of maintaining order in the Japaneseoccupied areas until the arrival of National Government troops. After the Nationalist takeover of China's largest city had been secured, Tai Li arrested Chou Fo-hai and flew him to Chungking. There Chou was kept under house arrest with his wife and children. He was later moved to Nanking, where he was tried for treason. To a large extent Chou Fo-hai's fate was in the hands of Tai Li, who had been his most important link with Chungking during the war and who could, if he desired, secure favorable disposition of Chou's case. The death of Tai Li in a plane crash on 17 March 1946 made Chou's situation problematical, since no other senior official in the Kuomintang knew or cared enough about Chou's role in Chungking's strategy to attempt to influence the proceedings against him. Reportedly, Chou Fo-hai's wife, through the intervention of Ch'en Pu-lei, was granted an interview with Chiang Kai-shek, where she begged for her husband's life. Whatever the facts, on 26 March 1946 Chou Fo-hai's death sentence was commuted to life imprisonment on Chiang's order. He died in prison at Nanking in February 1948 after a prolonged illness.

Chou Fo-hai was a conscientious diarist. At the end of the war he placed seven volumes of his diary, which recorded events from 1939 to 1945, in a Shanghai bank. These volumes were confiscated by the Nationalist military intelligence and came into the hands of Teng Paokuang, director of the office of traitor's property of the government-controlled Central Trust. Teng refused the request of Chou's wife for their return, presumably because of details regarding the wartime activities of prominent figures in the Kuomintang and the National Government. Teng Pao-kuang later defected to the Communists. He visited Hong Kong in 1950, taking with him the 1940 portion of the diary. In Hong Kong that document found its way into the hands of Ch'en Pin-ho, a newsman who had been active in the Wang Ching-wei regime. It was published in Hong Kong by the Ch'uangk'en ch'u-pan-she in 1955 as Chou Fo-hai jih-chi [Chou Fo-hai's diary].

Chou's reminiscences of his school days and of his career in the Kuomintang were collected in a book entitled Wang-i chi, published at Shanghai in 1944 and reprinted at Hong Kong in 1955. His serious writings include a number of articles which appeared in Hsin ch'ing-nien in 1921 and 1922 and three books dealing with the ideas of Sun Yat-sen, notably the Three People's Principles: Chung-shan hsien-sheng ssu-hsiang kaikuan (Shanghai, 1925), San-min-chu-i chih li-lun te t'i-hsi (Shanghai, 1928), and San-min-chu-i te chi-pen wen-t'i (Shanghai, 1929). Chou Fo-hai also produced a translation of Kropotkin's Mutual Aid entitled Hu-chu-lun (Shanghai, 1922), books on economic theory and finance, and translations, mostly from Japanese, of works on international economics, economic history, and international commercial policies.

Chou Fo-hai was survived by his wife, Yang Shu-hui, and by their two children. Chou Yuhai, who was educated in Japan, went over to the Communists after his father was sentenced to death. The daughter, Chou Hui-hai, married twice.

Biography in Chinese

周佛海

周佛海(1897—1948.2),协助建立中国共产党,但在1924年时退出了共产党。他成为国民党的出色理论家,多年为蒋介石工作,曾任国民党宣传部代部长。他主编《新生命月刊》,在上海办新生命书店。他协助汪精卫成立日伪政府并任重要职务,战后因卖国罪被捕入狱。

周佛海生在湖南沅陵,他父亲在太平天国时投入湘军,年轻时就死去,遗有寡妻、二子一女,凭一百多亩瘠田谋生。1912—1917年,周佛海进沅陵的高小和中学。1917年,他已是一子一女的父亲了。

周佛海幼年时是个好学生。1917年5月,在他毕业前夕,沅陵中学的校长和他的同学深知他的才能,又知道他的家境贫寒,筹集了一小笔资金帮助他去日本深造,他又从亲戚那里借得一些款项到日本去了,7月到达东京。他在日本一所私立学校学日文和其他一些入学准备课程,他又热心参加留日中国学生的活动。1918年,他因反对日本趁同盟国干涉西伯利亚时机与段祺瑞政府签订中日协定,离开了日本,由友人建议去中朝边境的安东厘金局谋求工作,可是厘金局地处荒滩,几乎不能再雇职工了。一贫如洗的周佛海感到前途渺茫,几乎想要自杀。最后,他借了一些钱又回到东京,为投考第一高等学校专心准备功课,他通过了口试的难关,据他自己回忆,一位谙通日语的人,为他准备了一篇关于正在进行的直奉战争的报告。主试人要求他发表对直奉战争的意见,由于他已预作准备,答复得很好,因此他被录取入学并得到了官费,解决了求学费用问题。毕业后,进京都大学学经济,受到川上教授的影响。河上是马克思主义经济学家,曾把资本论译成日文。

周佛海是1921年7月在上海举行的、中国共产党第一次代表大会的十二名代表之一。他代表中国留日学生,会议时任秘书。他在上海短期逗留时,与上海的富商留美学生杨卓茂的女儿杨淑慧恋爱。她是启明女校学生,爱上了贫穷的已经结婚的周佛海,这个性格倔强的女孩子不顾父母的劝阻,与周佛海私奔到日本过着清苦的生活,一直到1924年周在日本完成了学业。

那时正是国共合作时期。1924年5月,周佛海由日本乘船直接到达广州,当时国民党已在广州成立了革命政府,他在广东大学和黄埔军校教书。据周佛海自称,他在1924年冬脱离共产党。1925年他出版了他的著作《中山先生思想概观》,这本书引起了蒋介石的注意。1925年12月,他离广州去武汉,据说是由于他不满鲍罗廷对广州政府的控制。他在武汉大学和武汉商学院教了几个月书,不久又回广州,正好赶上参加1926年7月开始的北伐。1926年10月,国民革命军占武汉后周佛海任以蒋介石为校长、邓演达为代校长的中央军校的武汉分校秘书长兼主任。由于蒋介石和邓演达当时都忙于其他事务,因此中央军校武汉分校的实权由周佛海掌握。后来,邓演达任共产党人恽代英为主任政治教官,实际控制政治部。周佛海当时处境困难,共产党和国民党右翼对他都不信任。当蒋介石和武汉政府的分裂加剧,周佛海决定逃离汉口。1927年4月,蒋介石成立南京政府反对武汉政权。5月初,南京政府在其统治区内清洗共产党,周佛海携家眷及岳父,乘英轮秘密从汉口去上海,可是,他被同船的国民党旅客认了出来,通知了南京政府,因此,他在上海一登岸,就以共产党嫌疑分子被捕。经他妻子和张治中、郭泰祺、戴季陶等有影响友人的周旋,周佛海被监禁三个月后释放。

周获释后,蒋介石任命他担任新成立的南京中央军校的主任政治教官。那时,他着手写作《三民主义的理论体系》一书,此书写成后在国民党中国流传甚广。1927年8月,南京的派系斗争促使蒋介石辞职。周佛海离职,应广州中山大学校长戴季陶之请去该校教书。国民党自清党以来,广州及中山大学的政治气氛十分不安,周佛海于1927年秋离广州去上海。国民党在上海创办政治评论刊物《新生命》,由周佛海负责编辑,于1928年1月出版。陈布雷、陈果夫、邵力子、戴季陶也为此刊撰稿。不久,周佛海又创办了新生命书店,1928年4月,该书店出版了他的著作《三民主义的理论体系》。蒋介石从日本回国,准备第二阶段的北伐,又召周佛海担任中央军校政治部主任。1928年夏,国民革命军占领北京,北伐结束。7月,周佛海陪同蒋介石去北京,到西山孙中山陵堂奠祭。他从北京回来后,辞去南京军校职务,回到上海工作。

1929年2月,蒋介石召周佛海到南京,3月间,召开国民党第三次全国代表大会,周佛海作为来自菲律宾的代表身份出席大会。不久,他协助蒋介石进攻武汉的桂系军人。接着任国民革命军政训处处长,兼总司令部政治处长。
1931年11月,在国民党第四次全国代表大会上他当选为中央执行委员。一个月以后,因日本侵略满洲,蒋介石被迫辞职。蒋在辞职前,安插军人顾祝同为江苏省主席,顾任周佛海为江苏省政府委员、教育厅长。1933年,陈果夫任江苏省主席,周佛海回南京任国民党民训部部长,并参加蓝衣社活动。蓝衣社的头领大都是前黄埔军校的学员。1935年,周再次当选为国民党中央执行委员。

1937年1月,国民政府派周佛海、邵力子去香港迎接从欧洲回国的汪精卫,以实现1936年12月的西安事变后的团结。不久,政府改组,周佛海调任国民党宣传部次长,1938年任代部长,但仍继续当蒋介石的助手,负责起草重要文稿。

周佛海与蒋介石私人关系密切,他为什么转而支持蒋介石长时期的政治敌手汪精卫,其动机迄今并未清楚。据周佛海自称,当时他属于所谓低调派的人物,其中有胡适、梅思平、陶希圣等人。这一派据说诋毁要求立即抗日的高调派的那些人物。1937年7月,中日战争爆发后,周佛海是国民党管宣传工作的重要官员,他在汉口办了一个“艺文研究社”,向世界上表达中国的态度。周佛海任社长,陶希圣任秘书。由于陶希圣是汪精卫的知友,因此,周佛海在这一段时期内结识了汪精卫周围的一些人物。汉口沦陷,国民政府迁往重庆,汪精卫对抗战的胜利前景十分悲观,主张与日本讲和。1938年12月18日,汪精卫离重庆,周佛海得讯,借口视察党务追随前往。他在昆明和汪精卫的一批人同到法属印度支那的河内。1938年12月29日,汪精卫在致重庆国民政府通电中,表明了他的立场。1939年初,汪精卫在河内时,周佛海到了香港。他和陈公博、林柏生、梅思平、陶希圣等人在《南华日报》上,为汪精卫的和平运动进行宣传。1939年4月25日,汪精卫乘法商轮船秘密离开河内前往上海,在汕头换乘日本船于5月6日到达上海。周佛海随即到达上海。早在4月初,周佛海曾与日本特工人员会见,建议由日本支持,在南京成立一个对峙的中国政府,由汪精卫领导,结束中日冲突。周佛海在支持汪精卫的五十多人出席的上海会议上,竭力阐明这个主张。这次会议并未作出任何决议,但周佛海的建议却被汪精卫本人所接受。1939年6月4日,汪精卫带领周佛海及其他亲密顾问去东京,与日本总理大臣平沼骐一郎的那一派人商谈。谈判延搁了下来,6月24日汪精卫回上海,留下周佛海在日本商讨签订一项协定。

谈判结束后,周佛海回上海,筹备成立汪精卫新政府。1939年9月,汪精卫召开所谓国民党第六次全国代表大会,选举周佛海为财政和秘密工作委员会主席。9月,他在南京出席汪精卫及在北京和南京的两个日伪政府的头目的会议,商量成立一个以汪精卫为首的中央政府。11月,汪日谈判,讨论调整中日新关系的日方方案,周佛海、高宗武、梅思平、陶希圣代表汪精卫一方,1939年12月30日谈判结束。

1940年1月,汪精卫的活动受挫,因为从头到尾参加密谋的高崇武、陶希圣携带日汪秘密协定的副本逃跑到香港,秘密协定的条款一经发表,舆论大哗,但并不能遏制汪精卫的行动。1940年1月23日,周佛海作为汪精卫的代表团的一员出席青岛会议,筹划北京和南京两地政权在汪提出的新组成的政府下合并,26日会议结束,周佛海于1月28日飞往日本,与日方讨论促使重庆结束战争的可行办法,及和平实现后的汪蒋关系。2月26日回上海后,周佛海即着手筹备成立新政府,1940年3月30日新政府终于成立。周佛海在他的日记中很确凿地说,他是这次活动的中心人物。他在南京任如下职务:行政院副院长、财政部长、警政部长、军事委员会副主席、中央储备银行董事长。因为他掌握秘密警察,又是对日谈判的主要人物,他无疑是汪精卫最为得力和多能的帮手。周佛海说他很钦佩汪精卫的热忱和对他的完全信赖,这与蒋介石的高傲态度迥然不同。

东京之所以支持汪精卫的原意是迫使重庆和谈,因此,日本政府在与重庆进行和谈试探未完全失败前,暂不正式承认汪政府。1940年11月30日,日本和南京终于签订了基本协定并互换大使,这个协定出乎汪精卫等人的意料之外,协定维护了日本人对占领区的牢固控制。周佛海在1940年12月20日的日记中承认,他对日本人的意图的估计是错误的,而主张抵抗是对的。1941年12月,太平洋战争爆发,汪政府放弃了促使重庆按日本方案接受媾和的希望。那时,周佛海通过两座秘密电台与重庆建立接触:一座电台和在重庆的军统戴笠联系,另一座电台和第三战区司令长官顾祝同联系。顾祝同是周佛海在江苏省政府时的老同事。

1943年1月9日,汪精卫政府对同盟国宣战,日本在1943年10月30日签订了一个更优惠的条约,以替换1940年的中日协定。1944年3月3日,汪精卫去日本治病,将南京政府的事务交给陈公博、周佛海。1944年11月10日,汪精卫死在日本名古屋,所遗各职由陈公博接任,周佛海接替陈公博任上海市长。当太平洋战争进入决定性时刻,盟军在中国沿海登陆迫在眼前,据说重庆向周佛海交代任务,要他在盟军登陆之际,在日军后方协助抗击日军。原子弹和日本的投降,没有机会证实周佛海是否确实被授予上述的任务。

在1945年8月日本投降时刻,重庆国民政府当局向周佛海招呼。由陈毅率领的共产党军队抗战期间在华东已稳固地发展了他们的力量,而戴笠责成周佛海阻止共产党势力的渗入。1945年8月14日,日本投降后不久,重庆即任周佛海为沪宁地区行动队指挥,要他在日占区内维持秩序,以待国民政府军的到达。国民政府在接管了中国第一大城市之后,戴笠逮捕周佛海并用飞机将其押到重庆,把周和他的妻子、孩子软禁起来。后来又转移到南京因叛国罪受审。周佛海的命运在很大程度上操于戴笠之手,因为戴笠是周佛海在战争期间与重庆联系的最重要的联系人,只要戴笠愿意,那么周佛海案就可以得到较好的处理。1946年3月17日,戴笠因飞机失事而死,使周佛海的处境发生问题,这是由于国民党中没有其他高级官员了解或关心周佛海在重庆的战略中所起的作用,因而在处理周佛海案件的进程中没有施加影响。据说,周佛海的老婆为周佛海请命,通过陈布雷而准予与蒋介石见面。结果是,1946年3月26日,蒋介石下令将周佛海的死刑改为无期徒刑。1948年2月,周因长期患病,死在南京狱中。

周佛海写日记很勤勉,战争结束时,他将1939—1945年间的七册日记存放在上海的一家银行里。这些日记由国民党军队谍报人员没收,而后转到中央信托局敌伪产业管理局局长邓宝光之手。周佛海的老婆要求发还日记,为邓宝光所拒,可能是因为有许多情节牵涉到国民党和国民政府重要人物的战时活动。邓宝光后来投奔共产党,他在1950年去香港随身携带周佛海1940年的那部分日记。在香港这部分日记落入新闻界人士金雄白之手,他原是汪政权中很活跃的人物。1955年在香港由中光出版社出版了《周佛海日记》。

周佛海青年时代学校生活和在国民党中活动的经历,记录在他的《往已集》中,1944年在上海出版,1955年在香港重印。在1921—1922年的《新青年》上有他的一些严谨的文章。他有三本关于阐述孙逸仙思想特别是三民主义的著作,即:《中山先生思想概观》(1925年上海出版),《三民主义之理论的体系》(1928年上海出版),《三民主义的基本问题》(1929年上海出版)。他还翻译了克鲁泡特金的《互助论》(1922年上海出版),以及其他财政经济理论书籍。此外,他从日文翻译过来有关国际经济、经济史、国际商业政策等著作。

周佛海遗有妻杨淑慧及儿女两人。他的儿子周愚海留学日本,周佛海判处死刑后,他投向共产党。他的女儿周慧海曾两次结婚。

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