Imo if Mao dies in 1956, he would take the status of Lenin in the USSR. He'd be the father of the nation but his legacy would be limited to his role in the revolution unlike in our timeline.
Now as far as China's direction is concerned well... it's hard to say, I'd say we'll see parallels with the Soviet union, a collective leadership takes over and after some 5 or 7 years of internal struggle a leader would consolidate power, who that person is hard to tell
 
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