Following the death of Mao Zedong, Hua Guofeng, who had been appointed as the Premier of China in 1976, emerged as the paramount leader of the Chinese Communist Party. He was involved in an intense power struggle that involved various factions within the party, all vying for influence in the new political landscape. As Mao's chosen successor, Hua represented a continuation of Maoist policies, yet he sought to introduce reforms to modernize the country and move away from some of the excesses of the Cultural Revolution.

Hua's leadership was characterized by his calls for stability and unity within the party. He promoted the policy of 'Two Whatevers,' which emphasized adhering to Mao’s principles while seeking to maintain order. This approach had mixed results, as various factions within the party had differing visions for China's future. Despite initial support, Hua's inability to assert firm control ultimately led to a gradual sidelining of his authority, setting the stage for future leaders like Deng Xiaoping to emerge more prominently.

Hua's ascent to power is crucial in understanding the transition from Mao’s ideologically rigorous leadership to the more pragmatic and reform-oriented approach that would define China's economic policies in the decades to follow. While he was seen initially as a stabilizing figure, his government had to contend with significant challenges that would reshape China's political and economic landscape.