 Needed to have an easy transition for peasants, workers and capitalists  Involved restructuring economy, social programs and politics  Country divided into 6 zones controlled by military until 1954

 Treaty of Friendship w/ Russia (1945) – guaranteed Soviets Outer Mongolia, assured mutual defense, China agreed not to let anyone else to trade in Manchuria and Xinjuang  Mao believed US-Soviet rivalry the main political force on the world, nervous about a US-Soviet alliance to invade China  Mao believed US wanted to attack USSR but was not ready, so they attacked intermediate zones instead

 US refused to acknowledge PRC, Mao made it difficult by imprisoning, kicking out or beating up American businessmen & ambassadors

 CCP organized mass movements to connect public to important political decisions, giving them an active role in developments through marches, discussions, poster campaigns  Cadres were formed into 8 levels of command  Media: People’s Daily set up to spread propaganda and denounce anti-communism  Crime: crackdown on organized crime, abolished prostitution, rehabilitated opium addicts, outlawed gambling

 Secret police similar to Russia’s KGB created to deal with KMT agents  Classes of people are created:

FIVE RED CATEGORIESSEVEN BLACK CATEGORIES 1. Poor/Middle Class Peasants 2. Workers 3. Revolutionary Soldiers 4. Revolutionary Cadres 5. Dependents of martyrs 1. Landlords 2. Rich Peasants 3. Reactionaries 4. Bad Elements 5. Rightists 6. Traitors 7. Spies One Million fell under Black Category

 Marriage: Free & consensual, no longer arranged, gave women equality  Forbidden: child marriage, polygamy, killing/selling children, feet binding  Health Clinics/Child care centers set up  Education: literacy campaigns, focused on science & Maoist ideas

 Business taken from landlords & KMT  Private business by National Capitalists  Trade under state control  Co-operatives  Small individual business  Banks nationalized Trade  State stores set up  State determines prices & wages  By 1956 private sector gone, state controls everything

 Feudal/forced labor abolished  Cadres dispersed in countryside  Cadres set up local peasant associations/militias  Landlords refund rent  Status of villager rises  “Speak Bitterness” meetings for villagers to denounce their oppressors

 Property of rich given to peasants  Some plots too small, cooperatives are created  Collectivization at first voluntary, by 1955 it’s compulsory, private ownership abolished

 Trade unions organized on Soviet model converting workers into Party members  Five year Plan 1953  Competition among workers to fill quotas  Stress underdeveloped interior (cities)  Focus on Heavy Industry  Large scale projects  Army repaired railway system, built roads and canals