Consolidation promotes development of farming sector

Between 1949, when the People's Republic of China was founded, and 1952, the landlord system was abolished and farmers were given full ownership of their land: they could buy, sell, operate it freely or lease it to other people.

However, in 1953, China started its socialist transformation, which promoted collective land ownership by rural cooperatives and related groups. Farmers worked together in units and did not have the right to lease land to others or transfer ownership.

In 1978, farmers were allowed to sign contracts with villagers' committees for use of an agreed area of land operated by local cooperatives.