The history of the People's Liberation Army begins in 1927 with the start of the Chinese Civil War and spans to the present, developing from a peasant guerrilla force into the largest armed force in the world. In the 1980s, the PRC shrunk its military considerably on the theory that freeing up resources for economic development was in the PRC's interest. China's military leadership has also been reacting to the display of American military might during the Gulf War and the 2003 Invasion of Iraq .