Over the past two decades and more，great achievement has been made with China’s poverty alleviation benefited from the strong economic growth and the well-planned poverty alleviation activities. However the rural areas，particularly the poor areas，are relatively neglected in capital investment，as the economy moves further towards a capital- and technology-intensive one and the adoption of a urban-centred social development policy that often be criticized. Agricultural industry is taking up a shrinking share in the national economy and income from fanning has remained low. All these factors have led to a considerable change in the poverty picture in rural China over the past decade. On the one hand，poor people living in the west and the central part of China see no fundamental changes in their poverty status；on the other hand，development gap between different places within the same region has also caused the dispersed distribution of the new poor. The poor are in poverty in terms of low income，as well as in poverty in political，economic，social and environmental terms. This has already begun to challenge the justice of China’s economic and social development policies and called for an innovative poverty alleviation and development strategy and approach. This research will put forward the following conclusions and proposals regarding the targeting and management of the poverty alleviation funds.