Agrarian Reform

China's rural economy has been developed on top of a very weak foundation.

From 1949 to 1952, the early years following the founding of the People's Republic, an agrarian reform was carried out for the purpose of boosting agricultural production. On June 30, 1950, the Law on Agrarian Reform of the People's Republic of China was promulgated. It was warmly endorsed by the overwhelming majority of the newly liberated rural population. In the reform, the land ownership featuring feudalistic exploitation was abolished and replaced with a system of distributing land to all farmers, thus greatly emancipating the rural productive force and boosting agricultural production.

The three years of agrarian reform had greatly stimulated the farmers' enthusiasm in production and triggered rapid agricultural growth. In 1952, the total agricultural output value reached 46.1 billion yuan, up by 48.5% over that of 1949; total grain output reached 163.9 million tons, up by 45%; the output of other farm produce also surpassed the highest levels ever scored before the founding of the PRC.