The PRC was shaped by a series of campaigns and five-year plans, with mixed success. The economic and social plan known as the Great Leap Forward resulted in an estimated 45 million deaths. In 1966, Mao and his allies launched the Cultural Revolution, which would last until Mao's death a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of the Soviet Union, led to a major upheaval in Chinese society.
In 1972, at the peak of the Sino-Soviet split, Mao and Zhou Enlai met Richard Nixon in Beijing to establish relations with the United States. In the same year, the PRC was admitted to the United Nations in place of the Republic of China for China's membership of the United Nations, and permanent membership of the Security Council.
A power struggle followed Mao's death in 1976. The Gang of Four were arrested and blamed for the excesses of the Cultural Revolution, marking the end of a turbulent political era in China. Deng Xiaoping outmaneuvered Mao's anointed successor chairman Hua Guofeng, and gradually emerged as the de facto leader over the next few years.
Deng Xiaoping was the Paramount Leader of China from 1978 to 1992, although he never became the head of the party or state, and his influence within the Party led the country to significant economic reforms. The Communist Party subsequently loosened governmental control over citizens' personal lives and the communes were disbanded with many peasants receiving multiple land leases, which greatly increased incentives and agricultural production. This turn of events marked China's transition from a planned economy to a mixed economy with an increasingly open market environment, a system termed by some as "market socialism", and officially by the Communist Party of China as "Socialism with Chinese characteristics". The PRC adopted its current constitution on 4 December 1982.
In 1989, the death of former general secretary Hu Yaobang helped to spark the Tiananmen Square protests of 1989, during which students and others campaigned for several months, speaking out against corruption and in favour of greater political reform, including democratic rights and freedom of speech. However, they were eventually put down on 4 June when PLA troops and vehicles entered and forcibly cleared the square, resulting in numerous casualties. This event was widely reported and brought worldwide condemnation and sanctions against the government. The "Tank Man" incident in particular became famous.
CPC general secretary and PRC President Jiang Zemin and PRC Premier Zhu Rongji, both former mayors of Shanghai, led post-Tiananmen PRC in the 1990s. Under Jiang and Zhu's ten years of administration, the PRC's economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual gross domestic product growth rate of 11.2%. The country formally joined the World Trade Organization in 2001.
Although the PRC needs economic growth to spur its development, the government has begun to worry that rapid economic growth has negatively impacted the country's resources and environment. Another concern is that certain sectors of society are not sufficiently benefiting from the PRC's economic development; one example of this is the wide gap between urban and rural areas. As a result, under former CPC general secretary and President Hu Jintao and Premier Wen Jiabao, the PRC has initiated policies to address these issues of equitable distribution of resources, but the outcome remains to be seen. More than 40 million farmers have been displaced from their land usually for economic development, contributing to 87,000 demonstrations and riots across China in 2005. For much of the PRC's population, living standards have seen extremely large improvements and freedom continues to expand, but political controls remain tight and rural areas poor.