Communism was invoked more in the People’s Republic of China than in modern day China. During the People’s Republic of China, Red China, was established, government Zhou Enlai was incharge of the Communist Party's rise to power, and later in consolidating its control, forming foreign policy, and developing the Chinese economy. He was the main guy who made up of four social classes, the workers, peasants, petite bourgeoisie, and national-capitalists people. In which demonstrated communism at its finest, having a highly disciplined government, the first year of Communist administration resulted in relatively effective social, economic, and political policies.” On October 1st, 1949, the People’s Republic of China, or “Red China”, became formally established. Having the government headed by Zhou Enlai… made up four classes.. highly disciplined government, the first year of Communist administration resulted in relatively effective social, economic, and political policies”(Blogspot). Which shows that not only the leader had an effect on Red China, but it was also communism. Later in modern China communism begins to be replaced with capitalism due to competition, and reform of margins. This showed that China would put prices on their crops or farm products in order to maintain competition, China saw that industrialism was hurting their economy due to other companies having the same products as them. This lead into a competitive path in which there was nothing to gain, until the government and several rich people focused on investing in farms which was where capitalism started.”Chen believed that the Chinese economy had long suffered structural imbalance: too much investment in heavy industry relative to light industry and agriculture.. took steps to decentralize foreign trade and gave more fiscal autonomy to provincial governments. At the micro level, the emphasis was