On October 1, 1949, the People's Republic of China was formally established, with its national capital at Beijing. "The Chinese people have stood up!" declared Mao as he announced the creation of a "people's democratic dictatorship." The people were defined as a coalition of four social classes: the workers, the peasants, the petite bourgeoisie, and the national-capitalists. The four classes were to be led by the CCP, as the vanguard of the working class. At that time the CCP claimed a membership of 4.5 million, of which members of peasant origin accounted for nearly 90 percent. The party was under Mao's chairmanship, and the government was headed by Zhou Enlai (1898-1976) as premier of the State Administrative Council (the predecessor of the State Council).

The Soviet Union recognized the People's Republic on October 2, 1949. Earlier in the year, Mao had proclaimed his policy of "leaning to one side" as a commitment to the socialist bloc. In February 1950, after months of hard bargaining, China and the Soviet Union signed the Treaty of Friendship, Alliance, and Mutual Assistance, valid until 1980. The pact also was intended to counter Japan or any power's joining Japan for the purpose of aggression.

For the first time in decades a Chinese government was met with peace, instead of massive military opposition, within its territory. The new leadership was highly disciplined and, having a decade of wartime administrative experience to draw on, was able to embark on a program of national integration and reform. In the first year of Communist administration, moderate social and economic policies were implemented with skill and effectiveness. The leadership realized that the overwhelming and multitudinous task of economic reconstruction and achievement of political and social stability required the goodwill and cooperation of all classes of people. Results were impressive by any standard, and popular support was widespread.

By 1950 international recognition of the Communist government had increased considerably, but it was slowed by China's involvement in the Korean War. In October 1950, sensing a threat to the industrial heartland in northeast China from the advancing United Nations (UN) forces in the Democratic People's Republic of Korea (North Korea), units of the PLA--calling themselves the Chinese People's Volunteers--crossed the Yalu Jiang River into North Korea in response to a North Korean request for aid. Almost simultaneously the PLA forces also marched into Xizang to reassert Chinese sovereignty over a region that had been in effect independent of Chinese rule since the fall of the Qing dynasty in 1911. In 1951 the UN declared China to be an aggressor in Korea and sanctioned a global embargo on the shipment of arms and war materiel to China. This step foreclosed for the time being any possibility that the People's Republic might replace Nationalist China (on Taiwan) as a member of the UN and as a veto-holding member of the UN Security Council.

After China entered the Korean War, the initial moderation in Chinese domestic policies gave way to a massive campaign against the "enemies of the state," actual and potential. These enemies consisted of "war criminals, traitors, bureaucratic capitalists, and counterrevolutionaries." The campaign was combined with party sponsored trials attended by huge numbers of people. The major targets in this drive were foreigners and Christian missionaries who were branded as United States agents at these mass trials. The 1951-52 drive against political enemies was accompanied by land reform, which had actually begun under the Agrarian Reform Law of June 28, 1950. The redistribution of land was accelerated, and a class struggle against landlords and wealthy peasants was launched. An ideological reform campaign requiring self-criticisms and public confessions by university faculty members, scientists, and other professional workers was given wide publicity. Artists and writers were soon the objects of similar treatment for failing to heed Mao's dictum that culture and literature must reflect the class interest of the working people, led by the CCP. These campaigns were accompanied in 1951 and 1952 by the san fan ("three anti") and wu fan ("five anti") movements. The former was directed ostensibly against the evils of "corruption, waste, and bureaucracy"; its real aim was to eliminate incompetent and politically unreliable public officials and to bring about an efficient, disciplined, and responsive bureaucratic system. The wu fan movement aimed at eliminating recalcitrant and corrupt businessmen and industrialists, who were in effect the targets of the CCP's condemnation of "tax evasion, bribery, cheating in government contracts, thefts of economic intelligence, and stealing of state assets." In the course of this campaign the party claimed to have uncovered a well-organized attempt by businessmen and industrialists to corrupt party and government officials. This charge was enlarged into an assault on the bourgeoisie as a whole. The number of people affected by the various punitive or reform campaigns was estimated in the millions.

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