China's reform originated from rural areas, aiming to coordinate the relationship between farmers and land. Before 1978, hundreds of millions of Chinese people were struggling on their basic needs. Nowadays, after 40 years of development, more than 700 million people in rural areas of China were lifted out of poverty now. From 1978 to 1985, the profound reform of China's rural economic system provided a strong impetus for economic growth and dramatic reduction of the poverty-stricken population. By the standard at that time, 50% of the rural population met their basic needs during this period. And according to the current poverty standard, more than 100 million rural population have shaken off poverty, which not only laid a solid foundation for building a moderately prosperous society in all respects, but also made great contributions for poverty alleviation and development of all mankind.

    In 1978, farmers from 18 households in Xiaogang village of Fengyang county, Anhui province took the first step / took the lead of China's village reform to break down various restrictions/constraints posed by planned economic system. They started household-based operation with the household contract responsibility system, gaining contract lands that allowed free cultivation, which greatly stimulated their enthusiasm for agriculture production.