China plans to advance rural vitalization drive

China aims to achieve substantial progress in all-around rural vitalization and promote the modernization of agriculture and rural areas to a new stage by 2027, according to a plan issued by the Communist Party of China Central Committee and the State Council, China's Cabinet.

The plan emphasizes the development of high-quality rural industries as a key driver to boost farmers' income. It focuses on establishing a modern rural industrial system, enhancing income-generating measures and expanding rural consumption.

Gao Guoli, head of the National Development and Reform Commission's China Center for Urban Development, said the plan outlines objectives to advance urban-rural integration and achieve comprehensive rural vitalization, emphasizing the critical role this will play in promoting sustained income growth for farmers. "Increasing farmers' income remains the central task of rural development efforts," Gao said.

In recent years, farmers' per capita annual disposable income has risen steadily, surpassing 20,000 yuan ($2,745) in 2022, with the average annual growth rate outpacing that of urban residents. The figure rose to 23,119 yuan in 2024, according to data released by the National Bureau of Statistics.

The income gap between urban and rural residents has greatly narrowed, with the urban-to-rural income ratio declining from 2.81 in 2013 to 2.34 in 2024.

"Sustaining income growth requires enhancing urban-rural integration, promoting rural productivity and facilitating employment transitions for rural workers," he said.

The plan highlighted comprehensive county-level industrial planning, with a focus on modern farming, agricultural processing and land-efficient industries that offer more employment opportunities, Gao said.

Efforts will include building county-centered economic systems with small towns as key nodes, leveraging local agricultural specialties to establish a modern rural industrial system, he added.

Huang Hanquan, head of the Chinese Academy of Macroeconomic Research at the NDRC, said that although rural income has grown faster than urban income over the years, gaps remain, particularly in major grain-producing areas.

"Keeping the income growth rate of rural residents higher than that of their urban counterparts requires sustained efforts to broaden income channels and improve the earnings of low-income groups, especially those who have been lifted out of poverty," Huang said.

NBS data showed that in the first three quarters of 2024, the per capita disposable income of farmers in less-developed counties that have been lifted out of poverty reached 12,384 yuan, a 6.5 percent increase compared with the same period in 2023.

Thriving rural industries are essential for increasing farmers' income, he said. "It's important to develop distinctive agricultural and rural industries, focusing on diversified farming and multifunctional agriculture."

Efforts should include enhancing technological support and quality control while building standardized production, processing and logistics bases for specialty products such as grains, livestock and aquaculture, he added.

According to the plan, measures will be taken to upgrade agricultural processing industries, establishing industrial parks in key production areas and improving distribution networks such as wholesale markets.

It stipulates that a rural e-commerce initiative will be launched, along with new business models such as agritourism.

The plan also highlighted that policies to stabilize employment for migrant workers will be implemented, with enhanced skills training and support for entrepreneurship.

"It is vital to strengthen employment services for migrant workers, support older employees and stabilize wages from employment outside rural areas," Huang said.

He added that unlocking rural resource assets through rental agreements and cooperative development can boost farmers' property income.

In addition, the plan calls for expanding rural consumption, including improving county-level commercial systems, enhancing e-commerce and logistics networks, and creating centralized distribution hubs.

Initiatives to encourage rural purchases of products like new energy vehicles and green smart appliances will be supported, alongside efforts to promote product trade-ins.

Actions will also include developing rural life services and upgrading rural consumption infrastructure, according to the plan.