Building a collective economy, but for whom? ‘Three conversions’ and rural revitalization in China

The recent campaign to build a rural collective economy in China has been perceived as a major policy shift. This paper shows, however, that the policy outcome deviates significantly from building a genuine inclusive collective economy. The main measure that the Chinese state implemented to strengthen rural collectives under the new policy initiative has been to convert village resources, funds, and people into marketable assets, shares, and shareholders, known as ‘Three Conversions’ reform. Our fieldwork in a pilot village selected for implementing the policy shows that the newly established collective economy is not inclusive for all villagers. Rather, the policy empowered rural cadres and private investors, who have increased their control of village resources for personal gains, whereas ordinary villagers are increasingly detached and excluded from access to farmland and other village resources. As a result, instead of building an inclusive collective economy, the Three Conversions reform has facilitated the rise of state-led agrarian capitalism in rural China.