In September 1949, the First Plenary Session of Chinese People's Political Consultative Conference (CPPCC) was held in Beiping. The Session decided to found the People's Republic of China (PRC), and elected Mao Zedong chairman of Central People's Government of the PRC, and Zhu De, Liu Shaoqi and others vice-chairmen. The Session also decided to change name of Beiping to Beijing and make it the capital of the PRC, and decided to adopt March of the Volunteers as national anthem, and five-starred red flag as national flag.

At 2 pm on October 1st, state leaders were sworn into office, and Zhou Enlai was appointed Premier of Government Administration Council of Central People's Government.

At 3 pm, founding ceremony of the PRC was held. In Beijing, 300, 000 people gathered in Tiananmen Square. Standing in Tiananmen Rostrum, Mao Zedong solemnly declared to the world, "The Central People's Government of the People's Republic of China is founded!" He raised in person the first five-starred red flag to accompaniment of an artillery salute. This was followed by a grand military review, and a fireworks display in the evening.

Founding of the PRC marked the end of a 100-years history of semi-colonial, semi-feudal society in old China, and opened a new chapter in Chinese history. Since then, China, with nearly a quarter of the world's population within territory, has been an independent country, and people has become their own masters.