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With the implementation of the policy of expanding domestic demand, farmers have become the main body of rural economy and rural industrialization.


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Development of rural industrialization promotes the development of rural economy in China, effectively transfers the surplus labor force in rural areas, continuously optimizes the rural economic structure, improves the living standard of farmers, and has made important contributions to the stability and development of economy and society in China.

Though rural industrialization has obtained great achievements, there are still some problems restricting the development of rural economy in China. For instance, cognitive bias leads to the slow pace of rural industrialization; rural industry develops rapidly but its efficiency is low; intensive degree of economic growth is still very low; ability of independent innovation is weak; there are obvious contradiction between the constraints of resource and environment and the acceleration of industrialization; and development gap between regions has further widened.

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Therefore, policy suggestions are put forward. Firstly, continue to strengthen policy support. Secondly, take a new road of rural industrialization. The biggest achievement—one which by no means did we anticipate—was the development of township and village enterprises. Naughton, however, argues that Chinese policymakers had anticipated and, indeed, planned for the emergence of TVEs back, in ibid.


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CrossRef Google Scholar. Zhang Yi, ed.

Chinese industrialization

Zhongguo nengyuan tongji nianjian, China Energy Statistical Yearbook, Beijing: Zhongguo tongji chubanshe, Zhang Yi c , op. Strictly speaking, rural industries during the pre-reform period included non-state enterprises run by communes and production brigades CBEs as well as state enterprises administered at the county level. The share of fertilizer output from local small plants in national total rose from 12 percent in to 60 percent in It should be noted that most of the small and medium-sized fertilizer plants were administered at the county level rather than at the commune level.

The average annual output of rural cement plants was 12, tons, compared with 62, tons for local plants and , tons for large plants.

See Dwight Perkins, ed. Naughton, op. In the scheme developed by Sigurdson op. Perkins, op. The number of industrial TVEs is about 7. Beijing: Nongye chubanshe, various years. The Chinese term, xiangzhen qiye , literally means township and town enterprises, but it has become a generic term to refer to rural enterprises established by township and village governments, joint-households, and individuals in rural areas.

Ecologizing industrialization in Chinese small towns

Unlike some former rural small-scale industries as mentioned by Perkins, op. There are several English terms referring to xiangzhen qiye , but TVE seems to have gained widespread acceptance. See Document no. Per capita production of grain increased from kilograms kg in —79 to kg in —85, whereas per capita production of edible oil, meat, and cotton experienced even faster growth during these time periods: from 5.

Because of population growth and redeployment of farmland for other uses, between and , farmland per rural capita decreased from 3. Byrd and Lin Qingsong, ed.

It should be noted that income from farming grew much less rapidly than from non-farming activities. Between and , for example, the structure of farmers' income experienced considerable changes: income from farming declined from 85 to 63 percent, while income from non-farming activities increased from 7 to 27 percent. Martin's Press, , p.

Bibliographic Information

Once TVEs are established and well developed, the flow of capital is often reversed. TVEs in turn provide capital for the agricultural sector in purchasing equipment, building infrastructure, and even subsidizing the sale of agricultural produce Du in Byrd and Lin, op.

Some Facts about China's Rise

See Du in Byrd and Lin, op. See supplements to the tax regulations by the State Council Document no. See Ministry of Finance, Document no. Zhang Yi c, op. Dong, op.


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  5. Also see Peter Noland and Dong Fureng, ed. See Dong, op. See Naughton, op. In fact, many village leaders in China are democratically elected; they do not receive salaries from the state, but are compensated by the village. Theoretically, a collective village enterprise is owned by all villagers, although they do not explicitly hold shares in it.