Albania played a role in the Sino-Soviet conflict far outweighing either its size or its importance in the communist world. By 1958 Albania stood with China in opposing Moscow on issues of peaceful coexistence, de-Stalinization, and Yugoslavia's "separate road to socialism" through decentralization of economic life. The Soviet Union, other East European countries, and China all offered Albania large amounts of aid. Soviet leaders also promised to build a large Palace of Culture in Tiranė as a symbol of the Soviet people's "love and friendship" for the Albanians. But despite these gestures, Tiranė was dissatisfied with Moscow's economic policy toward Albania. Hoxha and Shehu apparently decided in May or June 1960 that Albania was assured of Chinese support, and they openly sided with China when sharp polemics erupted between China and the Soviet Union. Ramiz Alia, at the time a candidate-member of the Politburo and Hoxha's adviser on ideological questions, played a prominent role in the rhetorical.

The Sino-Soviet split burst into the open in June 1960 at a Romanian Workers' Party congress, at which Khrushchev attempted to secure condemnation of Beijing. Albania's delegation, alone among the European delegations, supported the Chinese. The Soviet Union immediately retaliated by organizing a campaign to oust Hoxha and Shehu in the summer of 1960. Moscow cut promised grain deliveries to Albania during a drought, and the Soviet embassy in Tiranė overtly encouraged a pro-Soviet faction in the APL to speak out against the party's pro-Chinese stand. Moscow also apparently involved itself in a plot within the APL to unseat Hoxha and Shehu by force. But given their tight control of the party machinery, army, and Shehu's secret police, the Directorate of State Security (Drejtorija e Siguimit te Shtetit--Sigurimi), the two Albanian leaders easily parried the threat. Five pro-Soviet Albanian leaders were eventually tried and executed. China immediately began making up for the cancellation of Soviet wheat shipments despite a paucity of foreign currency and its own economic hardships.

Albania again sided with China when it launched an attack on the Soviet Union's leadership of the international communist movement at the November 1960 Moscow conference of the world's eighty-one communist parties. Hoxha inveighed against Khrushchev for encouraging Greek claims to southern Albania, sowing discord within the APL and army, and using economic blackmail. "Soviet rats were able to eat while the Albanian people were dying of hunger," Hoxha railed, referring to purposely delayed Soviet grain deliveries. Communist leaders loyal to Moscow described Hoxha's performance as "gangsterish" and "infantile," and the speech extinguished any chance of an agreement between Moscow and Tiranė. For the next year, Albania played proxy for China. Pro-Soviet communist parties, reluctant to confront China directly, criticized Beijing by castigating Albania. China, for its part, frequently gave prominence to the Albanians' fulminations against the Soviet Union and Yugoslavia, which Tiranė referred to as a "socialist 12ec hell."

Hoxha and Shehu continued their harangue against the Soviet Union and Yugoslavia at the APL's Fourth Party Congress in February 1961. During the congress, the Albanian government announced the broad outlines of the country's Third Five-Year Plan (1961-65), which allocated 54 percent of all investment to industry, thereby rejecting Khrushchev's wish to make Albania primarily an agricultural producer. Moscow responded by canceling aid programs and lines of credit for Albania, but the Chinese again came to the rescue.

After additional sharp exchanges between Soviet and Chinese delegates over Albania at the Communist Party of the Soviet Union's Twenty-Second Party Congress in October 1961, Khrushchev lambasted the Albanians for executing a pregnant, pro-Soviet member of the Albanian party Politburo, and the Soviet Union finally broke diplomatic relations with Albania in December. Moscow then withdrew all Soviet economic advisers and technicians from the country, including those at work on the Palace of Culture, and halted shipments of supplies and spare parts for equipment already in place in Albania. In addition, the Soviet Union continued to dismantle its naval installations on Sazan Island, a process that had begun even before the break in relations.

China again compensated Albania for the loss of Soviet economic support, supplying about 90 percent of the parts, foodstuffs, and other goods the Soviet Union had promised. Beijing lent the Albanians money on more favorable terms than Moscow, and, unlike Soviet advisers, Chinese technicians earned the same low pay as Albanian workers and lived in similar housing. China also presented Albania with a powerful radio transmission station from which Tiranė sang the praises of Stalin, Hoxha, and Mao Zedong for decades. For its part, Albania offered China a beachhead in Europe and acted as China's chief spokesman at the UN. To Albania's dismay, however, Chinese equipment and technicians were not nearly so sophisticated as the Soviet goods and advisers they replaced. Ironically, a language barrier even forced the Chinese and Albanian technicians to communicate in Russian. Albanians no longer took part in Warsaw Pact activities or Comecon agreements. The other East European communist nations, however, did not break diplomatic or trade links with Albania. In 1964 the Albanians went so far as to seize the empty Soviet embassy in Tiranė, and Albanian workers pressed on with construction of the Palace of Culture on their own.

The shift away from the Soviet Union wreaked havoc on Albania's economy. Half of its imports and exports had been geared toward Soviet suppliers and markets, so the souring of Tiranė's relations with Moscow brought Albania's foreign trade to near collapse as China proved incapable of delivering promised machinery and equipment on time. The low productivity, flawed planning, poor workmanship, and inefficient management at Albanian enterprises became clear when Soviet and East European aid and advisers were withdrawn. In 1962 the Albanian government introduced an austerity program, appealing to the people to conserve resources, cut production costs, and abandon unnecessary investment.

In October 1964, Hoxha hailed Khrushchev's fall from power, and the Soviet Union's new leaders made overtures to Tiranė. It soon became clear, however, that the new Soviet leadership had no intention of changing basic policies to suit Albania, and relations failed to improve. Tiranė's propaganda continued for decades to refer to Soviet officials as "treacherous revisionists" and "traitors to communism," and in 1964 Hoxha said that Albania's terms for reconciliation were a Soviet apology to Albania and reparations for damages inflicted on the country. Soviet-Albanian relations dipped to new lows after the Warsaw Pact invasion of Czechoslovakia in 1968, when Albania responded by officially withdrawing from the alliance.

Data as of April 1992