History of China

Main articles: History of China and History of the People's Republic of China
Major combat in the Chinese Civil War ended in 1949 with the Communist Party of China in control of the mainland, and the Kuomintang (KMT) retreating to Taiwan and some outlying islands of Fujian. On October 1, 1949 Mao Zedong proclaimed the People's Republic of China, declaring "the Chinese people have stood up".[17] Red China was a frequent appellation for the PRC (generally within the Western Bloc) used from the time of Communist ascendance until the mid-late 1970s with the improvement of relations between China and the West.[18]
Following a series of dramatic economic failures (caused by the Great Leap Forward), Mao stepped down from his position as chairman in 1959, with Liu Shaoqi as successor. Mao still had much influence over the Party, but was removed from day-to-day management of economic affairs, which came under the control of Liu Shaoqi and Deng Xiaoping.

Mao Zedong proclaiming the establishment of the People's Republic in 1949.
In 1966, Mao and his allies launched the Cultural Revolution, which would last until Mao's death a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of the Soviet Union, led to a major upheaval in Chinese society. In 1972, at the peak of the Sino-Soviet split, Mao and Zhou Enlai met Richard Nixon in Beijing to establish relations with the United States. In the same year, the PRC was admitted to the United Nations, replacing the Republic of China for China's membership of the United Nations, and permanent membership of the Security Council.
After Mao's death in 1976 and the arrest of the Gang of Four, blamed for the excesses of the Cultural Revolution, Deng Xiaoping quickly wrestled power from Mao's anointed successor Hua Guofeng. Although Deng never became the head of the Party or State himself, his influence within the Party led the country to economic reforms of significant magnitude. The Communist Party subsequently loosened governmental control over citizens' personal lives and the communes were disbanded with many peasants receiving multiple land leases, which greatly increased incentives and agricultural production. This turn of events marked China's transition from a planned economy to a mixed economy with an increasingly open market environment, a system termed by many "market socialism". The PRC adopted its current constitution on December 4, 1982.
In 1989, the death of pro-reform official, Hu Yaobang, helped to spark the Tiananmen Square protests of 1989, during which students and others campaigned for several months for more democratic rights and freedom of speech. However, they were eventually put down on June 4 when PLA troops and vehicles entered and forcibly cleared the square by opening fire on protesters, resulting in numerous casualties. This event was widely reported and famously videotaped, which brought worldwide condemnation and sanctions against the government.
President Jiang Zemin and Premier Zhu Rongji, both former mayors of Shanghai, led post-Tiananmen China in the 1990s. Under Jiang Zemin's ten years of administration, China's economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual GDP growth rate of 11.2%.[19][20] The country formally joined the World Trade Organization in 2001.
Although China needs economic growth to spur its development, the government has begun to worry that rapid economic growth has negatively impacted the country's resources and environment. Another concern is that certain sectors of society are not sufficiently benefiting from China's economic development. As a result, under current President Hu Jintao and Premier Wen Jiabao, the PRC have initiated policies to address these issues of equitable distribution of resources, but the outcome remains to be seen.[21] For much of China's population, living standards have seen extremely large improvements, and freedom continues to expand, but political controls remain tight.