The Communist Party of China (CPC) held the Third Plenary Session of its Seventh Central Committee from June 6 to 9, 1950, in Beijing. The meeting mainly discussed economic issues. This was a clear indication that the CPC's focus was shifting from revolution to economic development. After the three major transformation movements, a basic socialist economic system had taken root in China in the 1950s, based on public ownership of the means of production and the principle of distribution according to work done.

By adopting the Constitution and establishing the political system of the People's Congress on 1954, China had laid a solid cornerstone for further development and prosperity.