The communists won the civil war and the people's republic of china was formed.

This is true

The communists were fighting against those who supported the royalty and the military. When they managed to win China turned into the People's Republic of China led by the communist party. The ones who lost fled and still claimed that they are the rightful government even though they were in exile. The situation still exists today.

In January 1949, Beiping, which name was changed back to Beijing, was taken by the communists. And between April and November, major cities passed to Communist influence. And finally, on October 1, 1949, the People's Republic of China has been founded by the Communists.