Following the Qing, China underwent a period of instability and disrupted economic activity. The Second Sino-Japanese War (1937-1945) and the following Chinese civil war caused the collapse of the Republic of China and formation of the People' s Republic of China. The new ruler of China, Mao Zedong, initially promised to develop "an socialist alliance with petit-bourgeois, workers, and nationalist bourgeois", but enacted collectivization upon consolidation of this regime. Collectivization resulted in the success of the first five-year plan, but Mao' s second five-year plan, which included the Great Leap forward, did not meet with the same success. Under the Nanjing decade (1927-1937), China advanced several industries, in particular those related to the military, in an effort to catch up with the west and prepare for war with Japan. A new party faction who supported private plots eventually challenged Mao' s economic policy. Unwilling to give up power, Mao launched the Cultural Revolution, which led to the collapse of the Chinese economy. The economic history of modern China began with the fall of the Qing Dynasty in 1911.
Economic History of Modern China
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