Every year, China’s Central No. 1 Document sets the tone for national priorities, and 2025 is no exception. The 2025 No. 1 Document, titled “Opinions on Further Deepening Rural Reform and Steadily Advancing Comprehensive Rural Revitalization,” continues the traditional focus on rural development, but introduces a more streamlined framework under “Two Continuities” and “Four Key Focus Areas,” placing food security, industrial upgrading, and rural revitalization at the core of policy efforts.

The document underscores that rural revitalization is essential for achieving Chinese-style modernization, highlighting the need for reform, technological innovation, and opening-up to strengthen and refine the rural basic management system. Ensuring national food security, preventing large-scale rural poverty relapse, and enhancing rural industries, infrastructure, and governance remain central priorities. It stresses that agricultural modernization and industrial upgrading must be pursued through technological advancement, while also addressing persistent challenges, such as rural labor shortages, uneven access to public services, and financial constraints at the local level.

While the concise nature of the document suggests a more focused execution strategy, the underlying challenges in rural China remain complex and deeply entrenched. Preventing large-scale poverty relapse, addressing disparities in public services, and ensuring technological advancements reach rural communities are all crucial tasks that Beijing cannot afford to overlook.

Food Security as a Geopolitical and Economic Imperative

China’s emphasis on grain security and key agricultural products is hardly surprising. The government’s push to stabilize production and supply chains reflects growing concerns over global geopolitical tensions and supply chain disruptions. The increased support for domestic soybean and oilseed production underscores efforts to reduce reliance on imports, particularly from politically sensitive suppliers like the United States and Brazil.

However, boosting domestic production presents structural challenges. China’s arable land is limited, and urban expansion continues to encroach on farmland. While technological innovations such as high-yield crop varieties and precision farming are being promoted, the question remains: Can small-scale farmers adopt these technologies effectively? The government’s call for modernized agriculture must be accompanied by robust policies to bridge the technology adoption gap and ensure financial incentives reach the right stakeholders.

Rural Industrial Upgrading: An Economic Growth Strategy?

Another key highlight of the No. 1 Document is its emphasis on agricultural modernization and industrial upgrading. The push for smart farming, digital agriculture, and mechanization aligns with China’s broader goal of transforming agriculture into a high-value, tech-driven sector. The government’s continued commitment to “deepening rural reforms and opening up agriculture to foreign investment” signals its intent to leverage market forces, but challenges remain in balancing efficiency gains with rural employment stability.

Large agribusinesses and state-owned enterprises stand to benefit the most from industrial upgrading, yet smallholder farmers—who make up the backbone of rural China—may struggle to keep pace. Without targeted support, mechanization and digitization may widen economic disparities rather than alleviate them. Farmers need access to training, credit, and digital literacy programs to participate meaningfully in the evolving agricultural landscape.

The Persistent Challenge of Preventing Poverty Relapse

While China officially declared victory in eradicating extreme poverty in 2020, poverty alleviation remains an ongoing battle. The document’s focus on “continuing to consolidate and expand the achievements of poverty alleviation” suggests Beijing’s awareness of the precarious nature of these gains. Economic shocks, climate change, and public health crises could easily push vulnerable populations back into poverty.

The government’s strategy of promoting “courtyard economy” and diversified rural income sources is well-intended, but significant hurdles exist. Many farmers lack access to financing, marketing channels, and training, limiting the effectiveness of such policies. Additionally, rural households engaged in small-scale, home-based industries often struggle with low productivity and market volatility. Without structural reforms that enhance rural social security and economic resilience, Beijing’s efforts to prevent large-scale poverty relapse may face uphill challenges.

Glaring Disparities in Rural Public Services

Despite policy pronouncements, rural China continues to lag behind urban areas in key public services, including education, healthcare, and elderly care. The document’s commitment to “accelerating the construction of livable and business-friendly rural areas” sounds promising, yet implementation challenges persist.

Healthcare: Rural medical facilities are often understaffed and underequipped. The gap between urban and rural healthcare access has widened, with many villagers forced to travel long distances for quality medical treatment.

Education: Despite efforts to improve rural education, teacher shortages and outdated infrastructure continue to hinder progress. Rural students face a systemic disadvantage, particularly in accessing higher education opportunities.

Elderly care: The issue of “empty-nest elderly” is a growing concern. With younger generations migrating to cities for work, rural elderly populations are increasingly left without adequate support. China’s pension and social security systems remain heavily skewed in favor of urban residents, exacerbating inequality.

If China truly aims to achieve rural revitalization, closing the rural-urban public service gap should be a top priority. More funding, personnel training, and infrastructure investments are urgently needed.

Hidden Structural Challenges: Labor Drain and Local Government Burdens

One of the most pressing yet often overlooked issues in China’s rural development strategy is the continuous outflow of young labor from rural areas to cities. While the document outlines ambitious plans for rural revitalization, it does not provide a concrete solution to the rural labor shortage. With a shrinking rural workforce, many government-led initiatives risk faltering due to insufficient manpower.

Additionally, local governments face increasing financial pressure. While the No. 1 Document simplifies policy directives for easier implementation, many local administrations lack the financial and human resources to carry out reforms effectively. Debt-ridden municipalities struggle to fund rural development projects, and policy execution remains uneven across different provinces.

Controversy Over Urban Residents Buying Rural Land

A particularly notable aspect of the document is the strict prohibition on urban residents purchasing rural housing and land. Officials have explicitly stated that city dwellers cannot buy rural homesteads, nor can retired cadres occupy land in the countryside for personal housing. This restriction underscores Beijing’s determination to preserve rural land for agricultural use and prevent speculative real estate activity.

The firm stance also highlights two broader economic concerns: first, the past trend of rural land being gradually divided and misappropriated; second, Beijing’s priority to direct urban investment toward the real estate market in cities to stabilize property prices. By preventing urban residents from purchasing rural homes, the government aims to reinforce its control over rural land distribution and sustain urban real estate demand.

The government has reaffirmed its strict prohibition on urban residents purchasing rural homes and land for residential use, as well as retired officials acquiring land in the countryside for private housing. Jin Wencheng, director of the Research Center for the Rural Economy at the Ministry of Agriculture and Rural Affairs (MARA) emphasized that rural homesteads are legally designated for farmers and that any reforms to this system must adhere to strict regulatory boundaries. This policy reflects concerns over past encroachments on rural land while also signaling the central government’s intent to direct urban homebuyers toward city real estate markets, thereby stabilizing housing prices.

Conclusion: Ambitious Goals, Unfinished Missions

The 2025 No. 1 Document sets clear and strategic priorities, reinforcing the importance of food security, industrial upgrading, and rural revitalization. However, structural issues at the grassroots level remain unresolved. Rural development is not just about technological advancement and economic expansion—it requires systemic social reforms, inclusive policies, and stronger local governance mechanisms.

While the document provides a roadmap for rural transformation, the true test will be in its execution. As China moves forward with its ambitious plans, bridging the rural-urban divide and ensuring equitable development must remain central to its policy agenda. Otherwise, the risk of economic and social fractures in rural China will continue to challenge the nation’s long-term stability and prosperity.