Improving life in rural areas

The economic gap between urban and rural areas exists in China. This year's No.1 document again pledges to narrow that gap, and more subsidies are on the way to boost urbanization.

Living conditions in Jiankou village in Sichuan province greatly improved in 2009.

A community hospital and endowment insurance provides people with a promising life.

Zeng Li, villager of Jiankou village, Sichuan Province,said, "It's much more convenient than before. In many aspects, such as transportation, with the construction of roads, it's become easier for us."

Jiankou village is just one example of the great changes in China's rural areas. Central government is determined to narrow the urban-rural economic gap.

Agricultural analyst Li Guoxiang said, "In this year's No.1 document, the government uses the coordinated development between urban and rural areas as an impetus to solve China's rural issues. The move is of significant importance for the over-all construction of China."

A highlight of this year's document is a new policy that encourages farmers to construct houses. It is aimed at boosting rural consumption.

Experts say rural consumption accounts for only 11 percent of the nation's total. Rural areas make up a huge potential market, and the demand for better housing could represent the biggest portion of that market.

Li Guoxiang said, "We've carried out a study. From the increase of farmers' annual income, 5 yuan will be used for daily necessities while 400 yuan will be used for household consumption."

Government programs like subsidizing home appliances and auto purchases in the countryside proved effective in 2009. Rural demand is greatly expanded and living standards are gradually improving.

With more effort in 2010, rural consumption is expected to contribute more to China's economic development.