China had been changed after World War 2. Mao Zedong took the power and China became a communist country under his rule. Deng Xiaoping also made many changes in China. Both Mao Zedong and Deng Xiaoping had similarities and differences economically and politically.
Under the rule of Mao Zedong and Deng Xiaoping, China experienced many changes in economic policies. First, they accepted communist economy. This came from Marxism, the theory that everybody in a group should be equal. It also included that the state or government would own all of the farms or any properties, not individuals. As Soviet Union's collectives, they formed groups of people to run the farms and factories for government and everyone in groups would earn the same amounts. However, Mao Zedong and Deng Xiaoping had differences to practice economic policies. Mao Zedong insisted that Chinese communist country could be formed at once by efforts of Chinese people.
It was the Great Leap Forward. Mao Zedong focused on the improvement of agriculture. He created communes by combining the villages and made them work together. Though he tried to improve the agricultural production, Great Leap Forward was failed because communes couldn't produce large amounts of food. Further more, Mao Zedong saw that the forming of communist nation was the only way to improve China at that time so the capitalism wasn't needed at all. Deng Xiaoping made a plan called 'The Four modernization'. He focused on agriculture, industry, science and defense. Especially on economy, people were allowed to have some private ownership of properties and trade or small businesses. In agricultural side, peasants could have their own small lands. Even though the state owned the lands, peasants could take a certain amount of food and sell the rests. Also he allowed the foreign investments. Now,