China does not recive the income for Kwangtung (or Burma) if you read the rules carefuly.
pg 9. Kwangtung and Burma are special cases. While they are not Chinese territories and cannot be controlled by China, Chinese forces can attack Axis units there and occupy them, but the IPCs generated go to the United Kingdom (unless India is under Axis control). These are the only two non-Chinese territories that Chinese units can occupy.
The prase “unless India is under Axis control” means.
If UK holds India, then collect these IPCs
If UK does not hold India, then do not collect these IPCs. (as per normal fallen capital rules)
Do not read “unless India is under Axis control” and think it implies that “instead it goes to China” beacuse that is not in the rules.
Sorry if I sound like I have a stick up my ass but I have had a lot of discussions about this in my gaming group