The economically backward communist China chose to sever its links with the capitalist world. It had little choice but to fall back on its own resources and, for a brief period, on Soviet aid and advice. The model was to create a state-owned heavy industries sector from the capital accumulated from agriculture. As it was short of foreign exchange that it needed in order to buy technology and goods on the world market, China decided to substitute imports with domestic goods.

Who was the leader of the communist revolution in China?

Mao Zedong

After the inception of the People’s Republic of China in 1949, following the communist revolution under the leadership of Mao Zedong, its economy was based on the Soviet model.