On September 26, 1942, by Imperial Decree No. 658, the Medal "In Memory of the China Incident" was established for participants in the 1937-45 Sino-Japanese War.

The award's statutes stipulated that it could not be awarded to holders of the Medal for Participation in the China Incident, which effectively meant that no Japanese would be awarded it. Presumably, this award was given to citizens of other countries who fought in the war on Japan's side, primarily Chinese collaborators.

The award itself is a 30 mm diameter disc made of bronze. On the obverse of the award, at the top is a chrysanthemum—the imperial crest—while the rest of the obverse is dotted with small sakura (Japanese cherry blossom) blossoms. The award's reverse is flat, with a vertical inscription in hieroglyphs reading "Commemorative Medal of the China Incident."
The award ribbon is colored like the ribbon of the Medal for Participation in the China Incident, but is attached more simply using a decorative eye and ring. The ribbon is 37 mm wide, and the colors are arranged in the following order and have the following meanings:
3 mm blue - sea and navy
3 mm light blue - sky and air force
7.5 mm yellow-brown - soil of China and ground forces
3.5 mm dark pink - blood that sprinkled the Chinese soil
2 mm bright red - Blood and loyalty.