Editor's note: Ji Chen, a special commentator for CGTN, is a professor at the China Academy for Rural Development (CARD), Zhejiang University, and Mao Rui is a professor and deputy dean at CARD, Zhejiang University. The article reflects the authors' opinions and not necessarily the views of CGTN.

The annual central rural work conference was held in China from December 29 to 30. As China prepares to enter its 15th Five-Year Plan period (2026–2030), the country is to comprehensively integrate industries to ensure food security and common prosperity as the modern agricultural industrial system is no longer just about yield.

The strategic significance of this shift is moving China from a traditional farming nation to an agricultural powerhouse. As Chinese President Xi Jinping stressed in the latest central rural work conference, it's necessary to make concerted efforts to develop agriculture into a modern, large-scale industry, ensure that rural areas are equipped with the basic conditions for modern living and enable farmers to enjoy more prosperous and fulfilling lives.

The turning point

A document issued on January 4, 2016, the Guidelines on Promoting the Integrated Development of Primary, Secondary, and Tertiary Industries in Rural Areas, marked the formal policy starting point for this transformation. Since then, China has successfully shifted from selling "raw materials" to selling "branded experiences."

The results are tangible. By the end of 2025, there were approximately 2,250 national-level leading agri-food enterprises, while the processing rate of agricultural products has climbed to nearly 78 percent. The total revenue for large-scale processing enterprises now exceeds 18 trillion yuan ($2.55 trillion).

This isn't just about factories; it's a digital revolution. E-commerce platforms like Douyin and Pinduoduo have turned live-selling into a new farm tool, with agri-product online retail sales reaching 680 billion yuan, a staggering increase of over 60 percent compared to 2021.

Rural tourism has also matured, with the per capita disposable income of rural residents reaching 23,119 yuan, maintaining a growth rate that consistently outpaces urban counterparts.

Consolidation and circularity

The success of the past decade rests on three pillars that have strengthened agriculture, enriched villages and benefited farmers.

Industrial integration and security. Some leading enterprises have moved beyond simple farming to full-chain control. This model ensures food safety while linking small holders to modern markets through contract farming and cooperatives, providing stable wage income and technical empowerment to millions of households.

The circular economy and multifunctionality. Resilience has been built through "crop-livestock" or "crop-livestock-forestry" integrated models that turn waste into wealth. Beyond environmental gains, this has unlocked the multifunctional value of agriculture, driving a boom in rural tourism. In early 2025 alone, rural destinations received 707 million visits, generating 412 billion yuan in revenue and turning idle village assets into goldmines.

The digital ecosystem and employment. The "efficient market + effective government" model, exemplified by Alibaba's commissioners and platforms like Douyin, has evolved into a comprehensive ecosystem. By optimizing rural logistics, this ecosystem now moves millions of agricultural parcels daily, creating over 10 million jobs and providing a powerful platform for farmers to directly capture the market's added value.

Addressing bottlenecks

Looking ahead to the 15th Five-Year Plan period, the primary chokepoints for further value chain transformation are the shortages of professional human capital and diversified investment. To unlock the next level of rural economic potential and ensure a sustainable path against returning to poverty, the strategy must focus on the following aspects:

Moving from fragmented digitization to artificial intelligence (AI)-driven chain integration. Priority must shift from isolated digital tools to AI-integrated value chains that bridge the gap between production and consumption.

Major pork producer Qinglian Food in Zhejiang Province is a successful case. Its pig industry chain creates a closed-loop system from breeding to the dinner table. By leveraging real-time data to synchronize pig production with market demand, it effectively addresses the long-standing mismatch between supply and consumer preferences, reducing market risks and ensuring food safety through full-chain traceability.

Empowering the value chain through professional human capital. The strategy must prioritize attracting new farmers, including village CEOs, returning youth and rural revitalization commissioners, to bridge the professional talent gap. Beyond traditional farming, these individuals possess the expertise to transform idle rural assets such as dormant land, vacant farmhouses and local heritage into high-margin businesses like boutique homestays and study tour bases.

By introducing professional project management and brand-building strategies, they turn "dead assets" into "live capital" and raw produce into premium brands, ensuring that a larger share of the industrial value-added remains within the village and its community.

Lowering barriers for social capital and reforming benefit distribution. To address the scarcity of diversified funding, the government should streamline mechanisms for social capital to enter rural areas by providing better risk-sharing frameworks and clearer land-use policies.

Simultaneously, value distribution must shift from transaction-based to equity-based cooperation. This ensures that while external capital flows in, farmers are integrated as shareholders who earn from dividends and patronage refunds, creating a win-win ecosystem for investors and villagers alike.

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