The result of the Chinese Civil War was the establishment of the People's Republic of China (PRC) in 1949 under the leadership of the Communist Party, headed by Mao Zedong. The Nationalist forces (Kuomintang), led by Chiang Kai-shek, retreated to Taiwan, where they continued to consider themselves the legitimate government of China. The victory of the Communists transformed China politically, socially, and economically, establishing a one-party state that emphasized collective ownership, social reforms, and central planning. This shift significantly altered China's relations with the world, leading to the Cold War's geopolitical dynamics and the eventual opening up of China to global economic integration in the late 20th century.