This article analyses a complicated episode in Sino-French relations during the first phase of the Sino-Japanese War (1937-1945). By using as-yet unexploited documents in China and France, it explains how China imported military materiel via Vietnam, the reactions of France in the face of the protests of Japan, and the negotiations about the imposition an embargo between China and France. After the outbreak of the Sino-Japanese War, Japan soon controlled all the coastal areas of Vietnam in an attempt to cut off the supplies of any provisions to China, as the National Government had used Vietnam as transit for obtaining military materiel. Under the pressure of Japan and fearing threats to its suzerainty over the colony, the French authorities in Vietnam sometimes had to interdict the passage of such goods. But France also tried to make a military cooperation deal with China, to which Chiang Kai-shek responded by sending his commissionaires to Paris to try to resolve three main issues: the provision of military goods, their transit via Vietnam, and a military mission of French consultants to China. In January 1939 France agreed to dispatch a military mission but had to revoke it in September due to the downturn of the situation in Europe. The armistice of June 1940 in France subjected the Vichy government to the Japanese pressure, resulting in the interdiction of goods from Vietnam to China. Moreover, France also signed a military accord with Japan in September enabling Japanese forces to station troops in Tonkin (North Vietnam). By July 1941, the Japanese Army had entered into South Vietnam. In fact, French Indochina became a base of Japan's Southward policy. Sino-French diplomatic relations during the war progressed through three phases: first, China tried hard to maintain its vital supply lines; then, France wanted to keep its suzerainty in Vietnam in the face of Japanese pressures; and finally, Japan overruled the previous two unstable situations. The compromise forced on the Vichy government by Tokyo became a major reason why France lost its all colonies in Indo-China after the War.