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Three Rural Problem in China

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REPORT TOPIC: Rural Development and Three Rural Problem in China; To what extent China Resources Hope Town Project Helps to Solve Three Rural Problems in Guang Xi?

Currently, around 900 million of China’s population, which account for around 70% of China’s total population and 22% of world population lives on around 2 billion mu (1 mu = 1/15 of a hectare) cultivable land accounting for 7% of world total cultivable land, and on average a peasant household survives on 1.5 mu of land (Zhang et. Al. 2001: 51). The challenge from the agrarian has been a major concern to the Chinese government ever since the foundation of the People’s Republic of China (PRC). As agriculture has been the mainstay of the Chinese economy, around 70% of China’s …show more content…

With this reform, grain output increased from 35 billion kilograms annually before and rose to 400 billion kilograms by 1984. Besides, the gross agricultural output value of grew by 68% and peasants’ average per capita income also grew 166%.

Apart from HRS, reform also included general price liberalization. The price of agricultural products are gradually liberalized with some exceptions that government still kept some regulations on grain production and procurements requiring peasants part of their grain to government. The “uniform purchase and sales” system was replaced by “contract purchase” and later on replaced by “state purchase” system in 1990s. Rapid economic growth together with the HRS greatly improve peasant’s life, gross per capital income of the rural household increased from less than RMB500 in 1983 to over RMB4,500 in 20051. However, situation changed when government thought that the rural area has completely reformed and shifted the policy target away from the country side and to the urban areas. The rapid economic growth in cities caused huge rural-urban income gap. The two-tiered marketplanning system implying that some products like cash crops are traded through market but some like wheat, rice and cotton, are partially or totally controlled by the state. Although government try to transform from planned to free market, but this has not happened to the rice, wheat and

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