Ow did the communist state arise and what kind of challenge did it provide to liberal capitalism in the West?

Just answer the title question.
Please, do not use any american or american universities literature, papers or articles. Thanks.
Harward system for references.
K.Marx and F.Engels, The Communist Manifesto”

E.Hobsbawm, The Age of Extremes: The Short Twentieth Century”, 1914-1991, chapters 1-4

E.H.Carr, The Russian Revolution: From Lenin to Stalin”

A.Wright, Socialisms: Theories and Practices”

G.Lichtheim, A Short History of Socialism”