"After the Japanese withdrew, the combination of the communists’ proven nationalist fervor and their program for wealth redistribution resulted in a mounting tide of popular support. This support facilitated the relatively quick defeat of the GMD, and the People’s Republic of China was established on October 1, 1949. Subsequently China collectivized its agricultural, industrial, and commercial systems. After Mao died in 1976, China’s new leaders embarked on a policy of economic reform, including the personal responsibility system and market socialism. Innovations involved allowing farmers to cultivate land for personal profit at prices set by market demand (once state quotas were met), permitting privately owned businesses, and allowing state-controlled foreign investment."