Purpose This article presents a summary of the development and current status of township and village enterprises (TVEs) in China, examines the latest development in property restructuring in TVEs and explores the key challenges facing TVEs. Design/methodology/approach This paper is a reflection of the key policies that were conducive to the development of township and village enterprises. Findings This article argues that the further development of rural enterprises in China should focus on a number of policy issues, including promoting private enterprises, upgrading industrial structure, developing the agri‐food processing industry, improving quality and branding, encouraging business concentration in towns, and encouraging regional economic and technical collaborations. Originality/value The article highlights the trajectory of the development of township and village enterprises in China and the lessons that have been learnt in the process.
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Xue Liang (2006) studied this question.
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