Analyses on Chinese Villages’ Local Economy — Hezhai’s Case Study

The chinese One-Party political system has prioritized economic development and social stability. The economic development is also local governance units’ main target, due to their fragile economic conditions. In 2020, China estimated over 500 thousand villages and registered about 36% of the population as rural. Apart from receiving State funds, the villages have some self-governance mechanisms permitted to stimulate their own local economies. The service industry is becoming a strong contender for the local development, especially rural tourism. Many studies made, show a connection between the political system and the economic development. This article analyses the village’s economic development, while reflecting on the effect of self-governance throughout the entire process. The investigation that focused on Hezhai village is a direct result of interviews made to local rulers and inhabitants, as well as the consideration of official data and information from a comparative database. To start, the current article displays the Chinese villages’ self-governance system and the main strategies for the economic development used at a basic level. Secondly it focuses on Hezhai and finally presents a reflection on what challenges local economies face in the future and the impact self-governance has on an economical point of view.