The paradox of China’s poverty alleviation policy: Disembedding relocated households under state-led relocation

China’s relocation policy aims to alleviate poverty and promote urbanization by bringing poor households scattered across mountainous areas into new rural communities. This article argues that such resettlement often leads to the loss of social networks and livelihood opportunities owing to insufficient involvement of the relocated population. Based on fieldwork conducted between 2019 and 2023 in western China, we identify a double disembedding effect resulting from the relocation policy. This effect is manifest across the livelihood system, social networks, and political participation. As poor households migrate from their original village, spatial resettlement reconfigures their social relations from the original to the relocated communities, generating disruption in support networks. This article highlights how state-led resettlement policies, while intended to improve poor peasants’ living conditions, may inadvertently undermine the social and economic foundations of relocated households. By examining these unintended consequences, we contribute to a broad discussion on the impact of state intervention in poverty alleviation and the need for more participatory approaches in the resettlement process of impoverished regions.