Connecting Small Peasants with Large Markets: The Need for a New Type of Rural Collective Economy – a Case Study of Zhanqi Village

Abstract Peasants often face difficulties in accessing markets and require state support and assistance. The rights granted by the state to rural areas and peasants have historically been difficult to implement effectively, leading to a substantial disparity between rural practices and national policies. This paper focuses on the 20-year reform journey of Zhanqi Village in Sichuan Province, showcasing how a new type of collective economy under the market system can serve as a bridge between the state and peasants. This approach addresses crucial issues such as shared prosperity, income, employment, and security for peasants, enhancing their sense of belonging. The study explores the characteristics of this new collective economy, emphasizing the interdependence and coexistence of collective and individual efforts, forming a public-private amalgamation. It delves into various aspects, including its strategic positioning, non-profit attributes, risk absorption, intermediary role, and the holographic organizational traits related to party involvement. The paper advocates for an integrated, multidisciplinary methodology to tackle yet-to-be-resolved practical challenges, contributing to the foundational understanding and development of China’s rural collectives and collective economy.