Overview China in the 20th century has been going through enormous changes. From colonialism and imperialism to republicanism, from communism to capitalism, and from underdevelopment to a country maintaining over 10% economic growth for over ten years. In this research paper, I will focus on the transition of China from a Communist command economy to a type of market economy as well as the economic fluctuations throughout this period. In 1949 Oct 1, the People’s Republic of China was established. Before 1949, there was a period of civil war soon after the world war two. The confrontation was between the Nationalist Komintang led by Chiang Kai Shek and peasant-based