The major challenge for China’s policy makers，which is closing the large income gap between rural and urban populations，should be addressed through economy-wide measures such as further relaxation of administrative barriers to rural/urban migration，improved access to education in rural areas，better health care，pension and other social services，enhanced land property rights and rural tax reforms. The provision of general services such as modern research and extension services，food safety agencies and agricultural price in formation，services which provide widespread benefits to producers and consumers through out the economy will also be of crucial importance.