Peng Haihong and Yue Xiaofeng: Research on the Basic Issues of the New Rural Collective Economy
The Third Plenary Session of the 20th CPC Central Committee proposed to: "develop new quality rural collective economy, construct an operating mechanism with clear property rights and reasonable distribution, and bestow farmers with more sufficient property rights and interests." Since the 18th CPC National Congress, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the new quality rural collective economy has continuously developed, becoming an effective realization form of the rural collective economy in the New Era. It has effectively consolidated rural collective land ownership, significantly strengthened the economic power of the rural collective, and powerfully promoted common prosperity for farmers and rural areas. It has become an important economic force for winning the battle against poverty and an important path for comprehensively advancing rural revitalization. In the process of accelerating the achievement of agricultural and rural modernization and the construction of a strong agricultural country, the new quality rural collective economy is playing an increasingly important role and exerting an increasingly significant influence.
I. The Concept and Characteristics of the New Quality Rural Collective Economy
The "new quality rural collective economy" is a new concept that has come into general use since the 18th CPC National Congress; currently, there is no unified conceptual definition. By taking the definition of collective economy in Marxist political economy as a theoretical foundation and by analyzing the era background and developmental process in which the new quality rural collective economy emerged, one can more accurately grasp the scientific connotation of this concept.
(1) The Proposing of the Concept of "New Quality Rural Collective Economy"
"New quality rural collective economy" is a concept that was proposed and gradually clarified after the 18th CPC National Congress, particularly during the process of the reform of the rural collective property rights system. Before the 18th CPC National Congress, scholars occasionally used the term "new quality rural collective economy," but its connotation differed greatly from the concept as it is generally used today. The reason for this is that the practice of the new quality rural collective economy and the theoretical thinking adapted to it had not yet fully unfolded.
The "Opinions of the CPC Central Committee and the State Council on Steadily Advancing the Reform of the Rural Collective Property Rights System," published on December 26, 2016, was an early document to propose the concept of the "new quality collective economy." It pointed out: "Scientifically identify the status of members of rural collective economic organizations, clarify collective ownership property rights, and develop the new quality collective economy; manage and utilize collective assets well, establish a new operating mechanism for the collective economy that meets the requirements of the market economy, and promote the preservation and appreciation of collective assets; implement farmers' land contract rights, [right to] use of rural housing land [1], collective income distribution rights, and the right to democratic management of collective economic activities, forming a governance system that effectively maintains the rights of members of rural collective economic organizations."
General Secretary Xi Jinping has repeatedly emphasized the development of the new quality collective economy. On September 21, 2018, while presiding over the eighth group study session of the Political Bureau of the 19th CPC Central Committee, he used the concept of the "new quality collective economy," emphasizing: "We must maintain the correct political direction of the rural revitalization strategy, persist in the nature of collective ownership of rural land, develop the new quality collective economy, and follow the path of common prosperity." On March 8, 2019, while participating in the deliberation of the Henan province delegation at the second session of the 13th National People's Congress, he again emphasized the development of the new quality collective economy, pointing out: "Promote the two-way flow and equal exchange of factors such as talent, land, and capital between urban and rural areas, activate the endogenous vitality of rural revitalization, consolidate and improve the basic rural management system, improve the 'three-rights separation' [2] method for rural contracted land, develop various forms of appropriately scaled agricultural operations, focus on the development of two types of agricultural management entities—family farms and farmers' cooperatives—support the organic connection between small farmers and modern agricultural development, establish and improve various management systems for collective assets, improve the powers and functions of rural collective property rights, develop and expand the new quality collective economy, and bestow the dual-layer management system [3] with new connotations." During his inspection of Jilin from July 22 to 24, 2020, he emphasized: "Deepen the reform of the rural collective property rights system, and develop and expand the new quality collective economy." When linked to the context of that time, it can be seen that "new quality collective economy" here refers to the new quality rural collective economy.
With the deepening of the reform of the rural collective property rights system, "new quality rural collective economy" began to be widely used as an integrated concept. On October 29, 2020, the Fifth Plenary Session of the 19th CPC Central Committee adopted the "Recommendations of the CPC Central Committee for Formulating the Fourteenth Five-Year Plan for Economic and Social Development and the Long-Range Objectives Through the Year 2035," which specifically mentioned the need to "deepen the reform of the rural collective property rights system and develop the new quality rural collective economy." On December 28, 2020, at the Central Rural Work Conference, General Secretary Xi Jinping pointed out while emphasizing the deepening of rural reform: "We must complete the phased tasks of the reform of the rural collective property rights system, make good use of the results of the reform, and develop and expand the new quality rural collective economy." At this point, the "new quality rural collective economy" clearly emerged as a complete concept.
Thereafter, central documents used the concept of "new quality rural collective economy" more explicitly, and policies regarding its development became increasingly clear and specific. The 2021 No. 1 Central Document (namely the "Opinions of the CPC Central Committee and the State Council on Comprehensively Advancing Rural Revitalization and Accelerating Agricultural and Rural Modernization") clearly proposed: "In 2021, basically complete the phased tasks of the reform of the rural collective property rights system, and develop and expand the new quality rural collective economy." Developing and expanding the new quality rural collective economy became a key task for rural reform and development in 2021. Building on this, the 2022 No. 1 Central Document (the "Opinions of the CPC Central Committee and the State Council on Doing a Good Job in the Key Tasks of Comprehensively Advancing Rural Revitalization in 2022") raised the issue of the development path for the new quality rural collective economy, emphasizing: "Consolidate and enhance the achievements of the reform of the rural collective property rights system, explore the establishment of a supervision, management, and service system for rural collective assets, and explore the development path of the new quality rural collective economy." The 2023 No. 1 Central Document explicitly proposed the issue of diversifying the means of developing the new quality rural collective economy, emphasizing: "Consolidate and enhance the achievements of the reform of the rural collective property rights system, construct an operating mechanism with clear property rights, scientific governance structures, stable management methods, and reasonable income distribution, and explore diverse paths such as resource contracting, property leasing, intermediary services, and asset equity participation to develop the new quality rural collective economy." The 2024 No. 1 Central Document (the "Opinions of the CPC Central Committee and the State Council on Learning and Applying the Experience of the 'Thousand Villages Demonstration and Ten Thousand Villages Renovation' Project [4] to Powerfully and Effectively Promote Comprehensive Rural Revitalization") raised the issue of the healthy development of the new quality rural collective economy, emphasizing: "Deepen the reform of the rural collective property rights system, promote the healthy development of the new quality rural collective economy, and strictly control the operational risks of the rural collective."
(2) Regarding the Conceptual Definition of the New Quality Rural Collective Economy
According to Marxist political economy, the collective economy is short for the collective ownership economy, referring to a form of public ownership economy in which the means of production are jointly owned by a portion of the laborers. The rural collective economy refers to a form of public ownership economy in which primary means of production, such as rural land, are collectively owned by a portion of the rural laborers. From the perspective of external forms, the rural collective economy can be a collective-owned economic organization such as a farm, enterprise, or shop; sometimes it also refers to the collective term for the personnel or total economic volume based on the scope of the village or group—commonly known as the village collective. According to the provisions of China's Constitution, various forms of cooperative economy in the countryside—such as production, supply and marketing, credit, and consumption—are part of the socialist economy under collective ownership by the working masses. The "Opinions of the CPC Central Committee and the State Council on Steadily Advancing the Reform of the Rural Collective Property Rights System" clearly and specifically defined the concept of the rural collective economy, pointing out: "The rural collective economy is an economic form in which collective members utilize collectively owned resource factors to achieve common development through cooperation and association; it is an important form of the socialist public ownership economy." The "Law of the People's Republic of China on Rural Collective Economic Organizations," adopted on June 28, 2024, at the tenth session of the Standing Committee of the 14th National People's Congress and set to take effect on May 1, 2025, states that rural collective economic organizations "refer to regional economic organizations based on collective land ownership, which exercise ownership on behalf of the member collective in accordance with the law and implement a dual-layer management system based on household contract management that combines unified and separate operations; these include township-level, village-level, and group-level rural collective economic organizations."
The "new quality rural collective economy" is a new concept that emerged during the process of the reform of the rural collective property rights system since the 18th CPC National Congress. It is a new form of rural collective economy developed under the guidance of General Secretary Xi Jinping's important discourses on the "three rural issues" [5], and supported by the theory, system, and policy framework of the "three-rights separation" of rural land ownership, contract rights, and management rights. It is also a new form of realization of the rural collective economy developed alongside the identification of member status in rural collective economic organizations, the clarification of collective ownership property rights, and the continuous improvement of the powers and functions of rural collective economic property rights during the reform process.
(3) In what ways is the New Quality Rural Collective Economy "New"?
Compared to the collective economy in the traditional sense, the "newness" of the new quality rural collective economy is reflected in at least the following five aspects:
First, a new era. The new quality rural collective economy has mainly developed within the New Era of Socialism with Chinese Characteristics. This economy emerged primarily after the 18th CPC National Congress; the concept was also proposed and formalized after that Congress. This determines that the new quality rural collective economy inevitably bears the characteristics and features of the New Era.
Second, a new institutional foundation. The traditional rural collective economy emerged on the basis of the socialist transformation of agriculture; it was primarily based on collective ownership of land and other major means of production, and the level of the collective economy was measured by the degree of unified collective management, emphasizing the role of the ownership base and unified management. The new quality rural collective economy emerged on the basis of the basic rural management system—centered on the dual-layer management system that combines unified and separate operations based on household contract management—and does not measure its level of "collectivization" by the degree of collective ownership or unified management. Instead, it pays more attention to the multi-factor participation of collective members and distribution according to actual contribution rates.
Third, a new scope of subjects. Under the traditional collective economy system of "three-level ownership with the production team as the basis" [6], the scope of collective members was divided into three levels: the people's commune, the production brigade, and the production team. During the new period of reform, opening up, and socialist modernization, after the dissolution of the people's commune system, the scope of members mainly included regional collective economic organizations at the township, village, and group levels—most often village-level collective economic organizations. The concept of the "village-level collective economy" emerged, and in most cases, all villagers were members of the collective economic organization. The new quality rural collective economy is based on the reform of the rural collective property rights system, breaking through the settings and boundaries of villages and groups, making the scope of subjects more flexible and broad.
Fourth, new forms of expression. The traditional collective economy often identified member status based on geography or household registration, emphasizing that members enjoy equal benefits or welfare, which conformed to egalitarian characteristics and requirements. The new quality rural collective economy often identifies member status through shareholdings, with income or dividends determined by the number of shares held. This thoroughly breaks the egalitarian "big pot" [7] and can better mobilize the enthusiasm of members.
Fifth, a new operating mechanism. Under the traditional collective economy, the village [administration] and the [economic] society were often highly integrated. Therefore, democratic decision-making and management were generally conducted through villagers' meetings, villagers' representative meetings, or meetings of collective economic organization members, with democratic supervision conducted by village affairs supervision committees or supervisory boards. The new quality rural collective economy was gradually generated and developed under the Central Committee's requirement to "explore effective realization forms of rural collective ownership and innovate rural collective economic operating mechanisms." Therefore, it emphasizes its attributes as an economic organization without additional political attributes. In its operating mechanism, it pays more attention to stimulating the endogenous drive and inherent vitality of the collective economic organization by realizing property rights and interests.
(4) Important Characteristics of the New Quality Rural Collective Economy
The new quality rural collective economy is fundamentally different from the traditional collective economy under the conditions of a planned economy, and it is also distinctly different from the old collective economy under the conditions of a socialist market economy during the new period of reform, opening up, and socialist modernization. The new quality rural collective economy both embodies the distinct characteristics of the rural collective economy and is clearly distinguished from previous forms. On the one hand, it retains the essential attributes and characteristics of previous collective economies, serving as a legacy; on the other hand, it differs significantly from them, representing a breakthrough from traditional and old collective economies. As the primary expression of the rural collective economy in the New Era, the new quality rural collective economy possesses distinct features.
First, primary-level Party organizations play a critical leading role. This is the most distinctive feature of the new quality rural collective economy. This feature is the most direct, fundamental, and practical manifestation of General Secretary Xi Jinping’s repeated emphasis on "Party management of rural work," and it serves as an important demonstration of the role of primary-level rural Party organizations as "fighting bastions" [8]. It also reflects the practical implementation of the requirements set forth in the Opinions of the CPC Central Committee and the State Council on Steadily Advancing the Reform of the Rural Collective Property Rights System: "Unwaveringly maintain the leading core status of primary-level rural Party organizations, plan and implement the reform of the rural collective property rights system centered on consolidating the Party's foundation for governing in the countryside, ensure the operation of collective economic organizations in accordance with laws and regulations, and gradually achieve common prosperity."
From a practical perspective, the leading role of primary-level rural Party organizations in the new quality rural collective economy is manifested in at least the following three aspects: First, primary-level rural Party organizations lead in organizing and guiding farmers to establish new quality rural collective economic organizations. Since the 18th National Congress of the CPC, a series of policy documents issued by the CPC Central Committee have emphasized that organizing and leading the masses to develop the collective economy and follow the path toward common prosperity is a vital responsibility of these organizations. For example, the Regulations on the Work of Branches of the Communist Party of China (Trial), issued by the CPC Central Committee in 2018, explicitly stipulate that village Party branches must organize and lead the masses of farmers to develop the collective economy and move toward common prosperity. Particularly following the implementation of the Regulations on the Work of Primary-Level Organizations of the Communist Party of China in Rural Areas (2018) and the Regulations of the Communist Party of China on Rural Work (2019), it has become a standard and compliant organizational practice for village Party branch secretaries to serve as heads of village-level collective or cooperative economic organizations through statutory procedures. Primary-level rural Party organizations now lead the masses toward common prosperity with greater confidence and institutional backing. Second, primary-level rural Party organizations correctly grasp and scientifically lead the developmental direction of the new quality rural collective economy. Third, members of primary-level rural Party organizations join the management of these new collective economic entities, participating in their operations to safeguard and ensure their healthy development. Internal CPC statistical bulletins show that as of December 31, 2023, Party organizations had been established in 488,959 administrative villages nationwide, achieving a coverage rate of over 99.9%. If these organizations develop the new quality rural collective economy with full confidence according to the aforementioned requirements, they can more effectively resolve chronic issues such as "no one to manage affairs and no money to handle affairs" [9] in rural areas, while providing a more solid organizational and economic foundation for comprehensively promoting rural revitalization.
Second, property rights are more clearly defined. During the process of reforming the rural collective property rights system, the rights relations of collective ownership were clarified by conducting inventories of collective assets and scientifically verifying the status of members of rural collective economic organizations. By clarifying the "family inventory" [10] of the collectives, a "clear-bottomed" accounting of collective property and member interests was achieved. This has led to the preliminary construction of a socialist rural collective property rights system with Chinese characteristics—characterized by clear ownership, complete rights, smooth circulation, and strict protection—and a new collective economic operational mechanism that meets market economy requirements. This effectively protects the legitimate rights and interests of members and promotes the preservation and appreciation of collective assets. Furthermore, developing the new quality rural collective economy through methods such as quantifying shares and distributing dividends based on shareholding has made the interest linkages between members, and between the collective and its members, tighter and more effective. This has effectively changed the stereotype of the "big pot of rice" [11] associated with the traditional collective economy and propelled its development forward.
Third, the forms of realization are diversified. Rural collective economic organizations, particularly new quality ones, play a vital role in managing collective assets, developing collective resources, and serving collective members. As the primary subjects for managing collective assets, these are "special economic organizations." They may manifest as economic cooperatives, joint-stock economic cooperatives, or other forms such as companies or specialized farmers' cooperatives funded by the collective economic organization. Regardless of the specific form, the essence of the new quality rural collective economic organization remains a realization of socialist public ownership and an important component of the country’s basic economic system.
In practice, some regions have established new quality rural collective economic organizations by transferring land management rights to village-managed cooperatives based on the "separation of three rights" (ownership, entitlement, and management rights) of rural collective land. One example is Tangyue Village in Leping Town, Pingba District, Anshun City, Guizhou Province, which implemented the "integrated verification of seven rights" (collective land ownership, household land contract management rights, rural collective property rights, forest rights, collective construction land use rights, housing ownership, and small-scale water conservancy project rights). By transferring land management rights to concentrate household contracted land into the village-integrated "Golden Land Cooperative" and encouraging farmers to voluntarily invest shares, the village achieved the concentration of productive factors such as land, capital, resources, and labor, thereby promoting the development of the village-level collective economy. Other regions have established new quality rural collective economic organizations through the joint-stock cooperative reform of collective經營 (business) assets. Still others have established organizations based on the joint-stock cooperative system during the "Three Transformations" reform [12] of rural "Three Capitals" (funds, resources, assets)—namely, transforming land resources into assets, funds into equity, and farmers into shareholders. For instance, Yantai City in Shandong Province explored various methods such as labor investment, land investment, capital investment, and infrastructure investment to form various types of "Party-led cooperatives," such as land-based, tourism-based, or enterprise-integrated cooperatives. By stipulating that the village collective's shareholding shall not be less than 10% and any individual member’s share shall not exceed 20%, Yantai promoted the development of the new quality rural collective economy across its entire jurisdiction.
II. Developmental Pathways for the New Quality Rural Collective Economy
Since the 18th National Congress of the CPC, based on the policy of "separation of three rights" for rural land, the CPC Central Committee has advanced the reform of the rural collective property rights system and vigorously developed the new quality rural collective economy through a series of policy measures and pilot reforms. Currently, the primary developmental pathways are as follows:
(1) Boosting the New Quality Rural Collective Economy through Property Rights Reform
Property rights are the core of an ownership system, and the rural collective property rights system is the core of rural land collective ownership. This reform concerns not only the protection of collective property rights and the implementation of collective ownership, but also the realization and protection of the property rights and interests of collective members. By conducting a comprehensive inventory of assets, verifying member status, and quantifying business assets into shares, the reform promotes the transformation of rural resources into assets, funds into equity, and farmers into shareholders. This corrects previous shortcomings such as the "voiding" of collective property rights [13], unclear business returns, and non-transparent income distribution. Establishing a new operational mechanism for the collective economy that meets market requirements and stimulates development vitality is an essential way to ensure asset appreciation, benefit farmers, and enhance the cohesion and combat effectiveness of primary-level rural Party organizations.
The Party Central Committee and the State Council attach great importance to this reform. In September 2014, General Secretary Xi Jinping presided over the fifth meeting of the Central Leading Group for Comprehensively Deepening Reform, deliberating on the Pilot Project Plan for Actively Developing Farmers' Joint-Stock Cooperatives and Granting Farmers Rights to Collective Asset Shares; the Standing Committee of the Political Bureau of the CPC Central Committee approved the plan in October. Carrying out the pilot project for rural collective asset share rights was an important foundation for steadily advancing the reform. In May 2015, with the consent of the State Council, the Ministry of Agriculture and other departments launched pilots in 29 counties (cities/districts). After three years of exploration, the pilot tasks were completed with expected results. The 29 pilot counties verified a total of 112.56 billion yuan in collective assets and confirmed 9.188 million collective members; 13,905 villages and groups completed the reform, quantifying 87.9 billion yuan in collective assets, with cumulative dividend distributions reaching 18.39 billion yuan. The reform brought tangible benefits to farmers. By 2019, 48.2% of village collectives nationwide had business incomes exceeding 50,000 yuan, an increase of 23.2 percentage points over 2016; cumulative dividends for collective members exceeded 380 billion yuan, 3.6 times the 2016 level. By August 2020, 438,000 villages had completed the reform, confirming over 600 million members. By the end of 2021, the pilot tasks were essentially completed nationwide. This reform of the joint-stock cooperative system for business assets has catalyzed a large number of new quality rural collective economic entities and innovated the operational mechanisms of the collective economy.
(2) Leveraging Fiscal Support to Aid Development
China's rural reform was carried out on the institutional foundation of the People's Commune system, specifically "three-level ownership with the production team as the basis" [14]. Due to the fixed nature of land in rural communities, rural collective land ownership is primarily manifested as ownership by the village (administrative or natural village). Thus, the village-level collective economy is the most direct manifestation of the rural collective economy. Supporting its development involves the vital interests of the farmers and the consolidation of collective ownership.
With the profound changes in rural society and the expansion of the market economy, village-level collective economies in some areas lagged significantly, making it difficult to maintain asset value, satisfy modernization requirements, or improve self-development capabilities. Supporting and strengthening the village-level collective economy is a major measure for promoting rural revitalization in the New Era. It serves as a key lever for cultivating new growth points and facilitating "dual circulation," holding great significance for balancing urban-rural development, promoting urban-rural integration, and consolidating the Party’s governing foundation.
To enhance the strength of the village-level collective economy and promote common prosperity, the Ministry of Finance issued a circular in 2015 selecting 13 provinces (including Zhejiang and Guizhou) to pioneer pilot projects. This work requires leveraging the superiorities of the collective economy, adhering to principles of collective ownership, market orientation, reform and innovation, and tailoring measures to local conditions. By utilizing the "Three Capitals," the pilots explore forms like land shareholding and agricultural operations cooperatives. The central government supports these local pilots through "awards in lieu of subsidies." Provincial departments also increased support, while municipal and county levels provided necessary backing. Funds are primarily used to subsidize land circulation, land consolidation, and the development of agricultural services and property management. By 2017, the pilot area expanded to 23 provinces with a 5-billion-yuan allocation, focusing on integrating reform results to revitalize assets and explore governance, operation, distribution, and supervision mechanisms, thereby continuously boosting the self-development capacity of village collectives. By 2018, the scope expanded to 28 provinces to explore diversified forms of realization like service provision and mixed-ownership operations.
Financial support has been significantly effective in assisting the development of new quality rural collective economies. For instance, as one of the pilot provinces, Zhejiang Province has insisted on treating the elimination of "weak collective economy villages" and the development of village-level collective economies as vital tasks for increasing residents' income, enriching the people, and strengthening the grassroots foundation. The provincial finance department allocates no less than 120 million yuan annually to support weak collective economy villages. Adhering to the principle of tailoring policies to specific villages based on their economic foundations and resource conditions, the province simultaneously emphasizes both "blood transfusions" (external support) and the collective economy's own "blood-making" (self-development) capacity. This has led to the exploration of new models such as "enclave" clustering [15], revitalizing existing resources, industry-driven growth, and generating income through services. In 2022, the total income of village-level collective economies in Zhejiang reached 76 billion yuan. Among these, administrative villages with an income above 300,000 yuan and an operating income exceeding 150,000 yuan accounted for 85%. According to plans, by the end of 2025, over 60% of administrative villages across the province will have an annual operating income exceeding 500,000 yuan. Similarly, Sichuan Province has continuously constructed a fiscal support system to strengthen village collective economies, promoting the high-quality development of Sichuan’s rural collective economy. By the end of June 2022, three batches of 3,757 supported villages from 2019, 2020, and 2021 achieved a total collective economy profit of 400 million yuan, an increase of 260 million yuan over the pre-support period. The average profit per village reached 107,000 yuan, a growth of 181.6%, with 1,223 villages earning profits exceeding 100,000 yuan.
(3) Rural Collective "Three Capitals" Promote the Development of New Quality Rural Collective Economies Rural collective "three capitals" (sān zī) refer to the capital (funds), assets, and resources owned collectively by the village. These are jointly owned by the members of the collective economic organization and constitute the essential material basis for developing the rural economy and achieving common prosperity for farmers and rural areas. Strengthening the management of rural collective "three capitals" helps increase farmers' property income and protects the property rights and interests of collective economic organizations and the farming masses. It facilitates the revitalization of existing rural collective assets and the continuous expansion of collective economic strength. Furthermore, it helps strengthen unified collective management and stabilizes and improves the basic rural management system [16].
Since the 18th CPC National Congress, the CPC Central Committee has strengthened the management of rural collective "three capitals" through a series of policy measures to bolster collective economic strength. The 2013 Central Document No. 1 [17] required: "It is necessary to improve the management system for the funds, assets, and resources of rural collective economic organizations, and to protect farmers' land contract management rights, residential land (zháijīdì) use rights, and collective income distribution rights in accordance with the law." The document called for exploring various effective forms of realizing the collective economy based on local conditions. The verification of assets and capital (qīngchǎn hézī) is a fundamental task in strengthening the management of rural collective "three capitals." In 2017, the Ministry of Agriculture and Rural Affairs, in conjunction with the Ministry of Finance and seven other ministries, issued the Notice on Comprehensively Carrying Out the Verification of Rural Collective Assets, conducting a thorough inventory and verification of all types of collectively owned assets. They also established an annual inventory and periodic reporting system for rural collective assets, organizing a mandatory asset check every year. By the end of 2020, a total of 6.55 billion mu [18] of rural land resources and 7.7 trillion yuan in rural collective book assets had been verified nationwide. As of May 2021, 6.5 trillion yuan in rural collective assets had been verified, 900 million collective members had been identified, and more than 500,000 villages nationwide had received registration certificates for rural collective economic organizations.
The CPC Central Committee and the State Council have also issued policies to strengthen the management of rural collective "three capitals." These allow rural collective economic organizations to use collective "four wastes" (sì huāng) land (barren hills, gullies, hillsides, and shoals) that have not been contracted to households, as well as orchards and aquaculture surfaces, for centralized development or modern agricultural projects through public bidding. Village collectives are permitted to use idle housing facilities and collective construction land for industrial development through independent development or joint ventures. Village collectives are encouraged to integrate and utilize accumulated collective funds and government assistance funds to develop the collective economy through equity participation in leading agricultural enterprises, village-to-village cooperation, village-enterprise partnerships, and poverty alleviation development. During this period, explorations were also made to transform operating assets formed by fiscal investment in agriculture and rural areas into quantified shares for households, allowing collective members to share in asset returns over the long term. The reform of rural collective "three capitals" management in the New Era has effectively activated "dormant" rural funds, assets, and resources, promoting the development of the new quality rural collective economy and expanding its strength. It has played a vital role in developing the rural economy, achieving rural revitalization, and realizing common prosperity.
III. The Current Status of New Quality Rural Collective Economies Through Party leadership and policy support, the new quality rural collective economy has achieved significant growth. Most rural areas have moved beyond the previous state of "having a collective but no collective economic organization." Some have progressed from "having an economic organization but no operating income." The number of "hollow villages" (kōngkě cūn)—those unable to handle affairs or fund activities due to weak collective economies—has decreased significantly, while the number of "beautiful villages" (hé měi xiāngcūn) suitable for living and working continues to rise.
(1) Overall Condition of New Quality Rural Collective Economies Vigorously developing the new quality rural collective economy is a key component of agricultural and rural reform in the New Era. Since the 18th CPC National Congress, the Party Central Committee has introduced a series of policies that have effectively promoted its development. This has largely addressed past issues such as ill-defined property rights, unclear operating yields, and lack of transparency in distribution. In practice, various localities have leveraged their resource advantages, geographical conditions, industrial characteristics, and assistance policies to explore diverse forms of the new quality rural collective economy. For example, some utilize idle warehouses, factory buildings, and vacant schoolhouses to develop a "property economy"; others use "red" (revolutionary culture), "green" (ecology), or "blue" (maritime) resources to develop rural tourism, leisure agriculture, and the health and wellness industry to upgrade the village collective economy. Some utilize the agricultural industrialization service system to promote the integration of primary, secondary, and tertiary industries. Others have explored paths for growth through "clustering" or "joint development."
Collectively, in 2020, the total income of village collective economies nationwide was 632.02 billion yuan, with 70.38 billion yuan distributed as dividends to members. As of the end of 2019, data from 2.992 million units—including 5,695 townships, 602,000 villages, and 2.385 million village groups—showed that the total volume of rural collective assets is massive. Out of 6.5 trillion yuan in book assets, operating assets accounted for 3.1 trillion yuan (47.4%), while non-operating assets accounted for 3.4 trillion yuan (52.6%). There are more than 11,000 wholly collective-owned enterprises with total assets of 1.1 trillion yuan. Fixed assets stand at 3.1 trillion yuan, nearly half the total. A major characteristic is the high concentration of assets at the village level, with 4.9 trillion (75.7% of the total) held by villages, averaging 8.164 million yuan per village. Townships and village groups hold 0.7 trillion (11.2%) and 0.9 trillion (13.1%) respectively. Some villages have brought fixed assets formed by recent fiscal projects into formal accounting management, cleaned up unfair economic contracts, written off certain debts, and revitalized idle assets, thereby enriching the development paths of the collective economy. Through reform and development in the New Era, the new quality rural collective economy has become a crucial economic organization at the grassroots, a key lever for deepening rural reform, and a vital economic force for common prosperity and rural revitalization.
(2) Challenges Facing the Development of New Quality Rural Collective Economies on the New Journey of the New Era Despite growth, in reality, some villages still lack collective economic organizations or have seen little economic growth. Some "hollow villages" persist, and some new economic organizations face poor management or lack of momentum. Our research identifies five universal challenges:
First, inconsistent conceptual understanding. There is a lack of scientific understanding regarding what the new quality rural collective economy is, how it differs from the traditional collective economy, and why and how it should be developed. Some grassroots cadres and masses privately believe it is merely a "fashionable name" or a "reprint" of the traditional model. Others fear it is a return to the "old path" of "large in size and collective in nature" (yī dà èr gōng) and "egalitarianism from the big pot" (dàguōfàn). Some doubt its superiority or its ability to solve the "hollowness" of village collectives.
Second, difficulties in implementing support policies. While some regions offer substantial support (300,000 to 500,000 yuan per village), the fragmentation of administrative functions (tiáokuài fāngé) [19] leads to scattered funds. Complicated application procedures and unrealistic criteria make it difficult for average villages to access these funds. In some areas, support is directed toward enterprises rather than the villages themselves. Grassroots cadres frequently complain that for villages starting from zero with no foundation or external assistance, getting support is extremely difficult, turning support policies into a "help the strong, not the weak" system.
Third, lack of multiple factors of production. General Secretary Xi Jinping has emphasized the need to clear obstacles for factors of production to flow to the countryside—including capital, technology, and talent—to inject new momentum into rural revitalization. However, the shortage of these three elements remains a widespread problem. While capital seeking opportunities and technology seeking application accumulate in modernization-driven cities, rural areas wait in vain for these resources. Given the current trend of urbanization and unbalanced development, it is difficult to achieve a large-scale "reverse flow" of these elements by relying on market regulation alone without the Party's policies and government intervention.
Fourth, lagging grassroots Party building. While building the Party to promote rural revitalization has progressed, some grassroots Party organizations remain weak. Their role as "fighting bastions" (zhàndòu bǎolěng) is not fully realized. This is reflected in the low number of young farmers joining the Party, the aging of rural Party members, and a lack of activity spaces. Many rural Party members have few opportunities for training, meaning they cannot master current policies or find economic paths suited to their village's reality, leaving them unable to lead the masses toward prosperity.
Fifth, insufficient endogenous motivation. The new quality rural collective economy is a vital form of socialist public ownership in the countryside. It is not just a market subject; it also carries out the political functions of consolidating collective land ownership and the basic rural economic system. Due to the lack of resources and weak Party leadership, some collective economic organizations have developed a "wait, lean, and ask" (děng, kào, yào) [20] mentality, lacking the internal drive for development.
IV. Countermeasures and Suggestions for Developing New Quality Rural Collective Economies
In the process of developing the new quality productive forces of the rural collective economy, many problems indeed exist; some are even interlinked with others to form a seemingly insoluble "chain of problems" or "circle of problems." This has resulted in some rural areas being unable to find an effective "handle" or starting point for developing the new quality productive forces of the collective economy. Other villages feel neither the pressure nor the motivation to develop it. To a certain extent, these phenomena and problems have hindered the development of the new quality productive forces of the rural collective economy. In the New Era and on the new journey, to vigorously develop this economy, we must focus on the following five areas of work.
(I) Break through traditional conceptions and create a favorable environment for public opinion The new quality productive forces of the rural collective economy represent the effective realization of the rural collective economy in the New Era. They constitute the primary economic organizational form arising from the reform of the rural collective property rights system and serve as the main economic force for promoting common prosperity for farmers and the countryside, as well as for comprehensively advancing rural revitalization. Because property rights are clearer, powers and responsibilities are better defined, and interests are more direct, this model can better bridge collective interests with the individual interests of farmers. The new quality productive forces of the rural collective economy possess inherent institutional advantages. Only by breaking through traditional ideologies and practical prejudices against it can we create a solid foundation in thought and public opinion for its further development.
First, in terms of ideology and theory, we must clearly explain the connotation, characteristics, and essence of the new quality productive forces of the rural collective economy to the vast number of rural primary-level cadres and the masses. We must clarify the similarities and differences between this and the traditional rural collective economy [21] so that they may develop a correct understanding. Second, local Party committees should regard the development and expansion of the rural collective economy as their proper responsibility, leading farmers to organize and develop this economy with full confidence and through every possible means. Third, we must vigorously publicize successful cases and experiences so that villages wishing to develop have models to learn from and experiences to draw upon, thereby promoting the steady development and "root-taking" of the new quality productive forces of the collective economy across the broader countryside.
(II) Strengthen the building of rural primary-level Party organizations and effectively exert their leading role For the countryside to develop and for farmers to become wealthy, the key lies in the Party branch [22]. To develop the new quality productive forces of the rural collective economy, we must strengthen the building of rural primary-level Party organizations to ensure they truly function as the leadership core. This ensures the correct direction of rural collective property rights reform and guarantees that the new quality productive forces of the rural collective economy "belong to the Party and serve the people," preventing control by a small number of insiders or the embezzlement of collective assets by external capital.
First, we must select and strengthen leaders for the new quality rural collective economic organizations. The Rural Party Branch Secretary is the "lead goose" [23] guiding the masses toward common prosperity. Following the principle of "two-way entry and cross-appointment" [24] between members of the "two committees" and the collective economic organization, we should select young Party members who are well-informed, energetic, and familiar with market competition to serve as branch secretaries. Second, we must proactively develop Party members from among the young farmers remaining in villages. This generation is better educated, tempered by the market economy, more receptive to new things, and possesses a greater spirit of pioneering and competition. Primary-level Party organizations should cultivate them into a solid reserve force for rural revitalization. Third, we must strengthen education and training for rural Party members. Compared to urban members, rural members have fewer opportunities, which limits their ability to grasp national policies and their capacity to act as vanguard models. Party committees and Party schools at all levels should expand training platforms to ensure rural members understand the State’s major principles, reform measures, and the requirements for rural revitalization, thereby stimulating their enthusiasm for building a "harmonious countryside that is pleasant to live and work in."
(III) Innovate systems and mechanisms to effectively stimulate internal vitality Deepening the reform of the rural property rights system, developing the new quality productive forces of the rural collective economy, clarifying the ownership of collective property, and granting farmers more complete property rights are major reforms introduced by the Party Central Committee. These are of great significance for protecting farmers' rights, promoting rural governance [25], and exploring new realization forms and operating mechanisms for the collective economy.
At present, we must adhere to the general principle of prioritizing the development of agriculture and rural areas. We must consolidate the achievements of the reform of the rural collective property rights system and build an operating mechanism characterized by clear property rights, scientific governance structures, steady business methods, and reasonable income distribution. First, departments at all levels should break through "siloed" [26] constraints, simplify application procedures, and guide the free flow of production factors—capital, resources, and talent—into the rural collective economy. Second, we must continue to explore the "three transformations" (resources into assets, funds into equity, and farmers into shareholders) [27]. Third, we must increase policy support, transitioning from "blood transfusions" (external subsidies) to stimulating the "blood-making" function (self-sufficiency) of these organizations.
(IV) Take multiple measures and explore diversified paths The manifestations of the new quality productive forces of the rural collective economy are diverse. The 2023 "No. 1 Central Document" [28] required the exploration of "diversified paths such as resource contracting, property leasing, intermediary services, and equity participation."
First, we must respect the will of the masses, adhering to the principles of seeking truth from facts, voluntary participation, and acting within one's means. Farmers must see the tangible benefits; we must attract the masses through the inherent superiority of the collective economy rather than imposing quotas, setting mandatory tasks, or launching "movements" (political campaigns) against the will of the people. Second, rural primary-level Party organizations should leverage the Party’s political and organizational advantages to encourage farmers to contribute land management rights, capital, assets, or labor as shares. By leading the masses to form cooperatives and joint-stock cooperatives, we create a "community of shared interests." Finally, we must guide these organizations to serve as the subjects of asset management, ensuring that collective assets are not lost and that their value is maintained and increased.
(V) Study and utilize specialized laws to support and promote development The Rural Collective Economic Organizations Law of the People’s Republic of China is the first specialized law in our country to regulate and protect the rights of these organizations and their members. It fills a long-standing legal void. From a legal perspective, it defines the concept, development principles, functions, member management, and support policies for these organizations, granting them an independent legal status. The passage of this law is the most powerful protection for the collective ownership of rural land and responds to the social call to expand the collective economy. It is a milestone that protects the fundamental interests of the broadest range of farmers.
(VI) Break down barriers to expand the collective economy through union and cooperation In essence, the new quality productive forces of the rural collective economy represent a cooperative economy of the working masses. It is an important way for the Party to lead and organize farmers in the New Era. At the same time, it is an effective market entity under the socialist market economy system. To remain invincible in fierce market competition, these organizations must break through industry, regional, and administrative barriers.
First, they should pursue joint ventures with agricultural enterprises, specialized farmer cooperatives, and supply and marketing cooperatives. Second, they should manage collective capital and resources effectively, investing in "dragon head" leading enterprises [29] or State-owned enterprises (SOEs) to ensure value appreciation. Third, they should strengthen village-to-village cooperation—for example, a village with capital and management advantages can partner with a village that has land resources and a prime location, achieving complementary advantages.
The continuous development of the new quality productive forces of the rural collective economy is the inevitable result of deepening the reform of the rural collective property rights system. In the New Era and on the new journey, we must promote its high-quality development to lay a solid material and institutional foundation for the path of rural revitalization with Chinese characteristics. This will enable the vast rural areas and farmers to make their due contributions to the historical process of comprehensively advancing the great rejuvenation of the Chinese nation through Chinese-path modernization.