This paper is to examine the land reform the CCP implemented for the New Liberated Areas after the founding of the PRC. The primary goal of the reform in the minds of the CCP leaders was to restore the agricultural sector and to accumulate capital for China`s industrialization. The CCP leadership lacked a creativity to experiment a new policy to the new environment of peace. The Land Law of 1950 was a reiteration of the earlier versions. The implementation of the reform was almost identical to the methods the CCP had used during their earlier years for the Soviet areas during the 1930’s and Manchuria during the Civil War years. Only change, if noticeable, in the policy was a leniency toward rich peasants. The land and moveable properties of rich peasants was not to be confiscated except rented land. The outbreak of the Korean War precluded any policy options the leaders might have. As the Chinese Peoples` Volunteers Army won the battles in the Korean peninsula, Mao Zedong`s concern about national security increased. The fear of a second front at home by the proxy of the Guomindang forces in Taiwan made the leaders in Beijing hasten the land reform. Being unprepare for an early completion of the task, the leaders in the regional bureaus of the CCP rushed into training cadres, only to find elements of questionable quality mixed in. Believing that the imagined threat was real, the CCP leadership decided to use wartime method of land reform. Now combining anti-imperialist struggle and anti-feudal struggle, the landlords, otherwise would have escaped execution, became easy targets of the struggles. The land reform ended with a minimal success. The agricultural production restored but never exceeded the level of 1937. The aim of the CCP leadership to make the land reform a threshold of industrialization failed. The consequence of the reform was primarily political. The CCP could mobilize the peasant mass for their political goals. The mass organizations formed during the reform became the instruments of the Party to carry out its policies down to villages.