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The warlords are not really independent states but different groups/factions within China, and thus can assume control by winning a power struggle against Chiang. They will annex nationalist china and after a few days they will adopt the cosmetic tag of China.
If China is losing the war badly, they will probably lose a lot of popular support as territories are lost, and it becomes more likely that one of the warlords will be able to take over.
It should have no impact on the progress of war itself, as assuming national leadership means you take China's place in any wars it was in. If taking the decision is pushing back Japan then that is a bug and you should report it.
Stop with your need to rage and read what he wrote dippy. Go back to your hole and let people get their sodding answers in peace.