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The communist revolution brought a fundamental change in income distribution in rural China. Wealth at the top of rural society and abject poverty at the bottom were both wiped out. The creation of new economic institutions combined the goals of production increase and greater income equality. Experience showed that it was difficult to attain both: land reform was followed by the emergence of new economic inequalities; the people's commune by economic disaster. After the consolidation of the collective production team as the basic economic accounting unit in 1962 the institutional framework underwent little change until 1980. However, an unprecedented growth of the rural population and the technical transformation of agriculture during this same period greatly transformed the economic conditions of China's peasantry.
Reverend John Leighton Stuart (1876–1962) served as U.S. ambassador to China from July 1946 until August 1949. In the many discussions of his ambassadorship the one diplomatic mission that has aroused the most speculation and debate was his abortive trip to Beijing, contemplated in June–July 1949, to meet with Mao Zedong and Zhou Enlai. Some students of Sino-American relations have claimed that had this trip been made the misunderstanding and subsequent hostility between the United States and the People's Republic of China in the post-1949 period could have been avoided; therefore, the unmaking of this trip constituted another “lost chance in China” in establishing a working relationship between the two countries. But others have thought that given the realities of the Cold War in 1949 and the internal political constraints existing in each country, no substantial result could have been gained from such a trip. Therefore, the thesis of a “lost chance in China” was more an unfounded speculation than a credible affirmation.