Following the Chinese Civil War and the victory of Mao Zedong 's Communist forces over the Kuomintang forces of Generalissimo Chiang Kai - shek, who fled to Taiwan, Mao declared the founding of the People 's Republic of China on October 1, 1949. Mao 's first goal was a total overhaul of the land ownership system, and extensive land reforms. China 's old system of landlord ownership of farmland and tenant peasants was replaced with a distribution system in favor of poor / landless peasants which significantly reduced economic inequality. In Zhangzhuangcun, in the more thoroughly reformed north of the country, most "landlords '' and "rich peasants '' had lost all their land and often their lives or had fled. All formerly landless workers had received land, which eliminated this category altogether. As a result, "middling peasants, '' who now accounted for 90 percent of the village population, owned 90.8 percent of the land, as close to perfect equality as one could possibly hope for. Mao laid heavy theoretical emphasis on class struggle, and in 1953 began various campaigns to persecute former landlords and merchants, including the execution of more powerful landlords. Drug trafficking in the country as well as foreign investment were largely wiped out.
when was the peoples republic of china founded
October 1, 1949