The growing disparity in wealth between rural and urban areas in China has created tension and compelled millions of farm workers to migrate to cities. The Chinese Communist government has decided to make a remarkable u-turn in traditional communist ideology and allow farmers greater power over the land they farmed. A document was released which forth the first time in Chinese Communist history allows farmers to “lease their contracted farm land or transfer their land use right.” At present, Chinese farmers collectively own land in their areas but each farmer is allocated a specific area to farm. Under the new law, the farmer can now sub-lease, contract, exchange, or swap land use.
One outcome of this change will be the emergence of large farms as more productive farmers can control over other land areas. Most likely, twenty years from now China will have a free enterprise farm system and their will be major farm businesses which control a majority of farm land.