China Poverty Alleviation: Tea trade benefits Xinmin villagers

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Industrial development is playing a pivotal role in the latest round of China's targeted poverty alleviation. One village in southern Guangdong Province has found an industry that suits its conditions -- growing tea. The revenue generated from the tea trade has lifted hundreds of villagers out of poverty. CGTN's Cui Hui'ao visited the village and tells us more.

On top of the mountain, this tea terrace is a ready source of dividends for local villagers. Two years ago, a Shenzhen state-owned enterprise was designated to help the impoverished Xinmin Village to lift its 140 residents out of poverty. This is part of a national scheme called counterpart assistance.

While there were many ways to go about poverty relief, for this company, the most sustainable approach was to find the right industry.

LIU YANTAO, CAPTAIN XINMIN VILLAGE WORK TEAM "We considered poultry, fruit, vegetables, and even developing solar energy. But eventually, we crossed them all off because of environmental issues, transportation, and climate."

Liu says tea was chosen because of a number of advantages, including stable market price, ease of storage, and being less weather dependent.

Once the direction was set, the company bought 33 hectares of tea terrace at a nearby affluent village called Xianhu. At 1,000 meters above sea level, this mountainous area is perfect for tea growing.

The company started hiring villagers like Chen Guoqiang to help with hoeing, picking, and stir-frying.

CHEN GUOQIANG XINMIN VILLAGER "I'm poor because I had heart surgery years ago. That cost me 300 thousand yuan. I had to borrow money from relatives and friends."

Chen's life was hitting rock bottom. At the worst time, he couldn't even feed himself, let alone pay back the money he owed. But things have picked up since the tea business took off. He gets paid 300 yuan a day for his work at the terrace. Beyond that, the company paid his medical insurance, bought him cows, and gave his 3-member family a 6,000-yuan dividend at the end of the year.

LIU YANTAO, CAPTAIN XINMIN VILLAGE WORK TEAM "Half of our revenue from the tea project is given out to villagers as dividends, 2,000 yuan per person. We encourage them to spend that money on investing in raising more chickens and cows. That way they can grow their own business and become richer."

CHEN GUOZHONG XINMIN VILLAGE HEAD "So far 88 percent of the village households have risen above the poverty line. The rest will be lifted out next year."

In 2017, the terrace yielded around 1,200 kilograms of tea. This year the yield will be even higher. According to the plan, the company will help this village until 2020.

CUI HUI'AO XIANHU VILLAGE, HEYUAN CITY "The legacy of the tea terrace project goes far beyond giving out dividends to villagers. Liu says one day when his company pulls out, the revenue will continue to benefit everyone in the village, contributing to water resources, education and infrastructure. Cui Hui'ao, CGTN, Xianhu Village, Guangdong Province."