Share ownership system boosts development and promotes rural vitalization

After more than a decade of hard work, Yuanjia village in Shaanxi province has achieved remarkable success in rural vitalization. The achievement is due to Yuanjia's collective share ownership system.

To stimulate the enthusiasm of the residents of the village in Liquan county, Xianyang city, 38 percent of the shares are retained by the collective, while the remaining 62 percent are evenly distributed among the households. The idea is to uphold the central position of farmers, while safeguarding the residents' development interests.

Through the collective share ownership system, the transformation of Yuanjia has become a prime example of progress in China's rural areas. The village has also embarked on a different model by selecting eight well-managed and profitable workshops — including those producing yogurt, cooking oil and chiles — for an initial exploration of changes to the system.

The original operators retain 20 to 30 percent of the shares, while the remainder are distributed among the residents. The village collective holds none. The system ensures an income for all.

Yuanjia has established 32 farmer cooperative societies, achieving the aim that everyone is a shareholder, and every household receives regular dividends.

The village also places great importance on talent development and capacity building. For example, residents are regularly sent to study overseas. Some of them recently visited Japan to learn the spirit of service and the pursuit of excellence. "After the villagers returned, I noticed a significant improvement in their overall approach. Though it cost money to take them abroad to learn, we believe the money was well spent," said Wang Chuangzhan, the director of the village committee.

Tourism is another area in which residents share the fruits of development. Since 2007, Yuanjia has leveraged its historical characteristics and unique advantages, turning them into attractions. For example, it has used the backdrop of the folk culture of central Shaanxi to create a comprehensive model for rural tourism.

Last year, the village saw some 6.6 million visitor trips, with total tourism revenue exceeding 1 billion yuan ($137 million). Meanwhile, the residents' per capita net income was more than 150,000 yuan, making Yuanjia a well-known model for rural vitalization.

As a result of such efforts, the village has developed into a rural tourism and leisure destination that combines folk customs and creative culture, rural nostalgia and urban fashion.

It has not only developed rapidly itself, but also spurred the development of surrounding villages. For example, it provides jobs for people from neighboring areas.

Sun Meiying, a former farmer, lives in a nearby village but works as a room attendant at the Yuansu Hotel in Yuanjia.

That means the burden of caring for the left-behind children and seniors has been lightened.

"By working here, I can make the same amount of money as I could in a city such as Xianyang, and take care of the children and the seniors conveniently," Sun said.

None of the accomplishments would have been possible without strong leadership. According to local residents, a lot of the credit for Yuanjia's success must go to Guo Zhanwu, the Party branch secretary of the village. Guo has successfully ignited and harnessed the villagers' enthusiasm and creativity, using the cohesive power of the Party as the driving force.

Guo's insights into rural industrial development have been instrumental, and he has helped local residents transition from being mere retailers into brand creators.

Now, "Yuanjia Village" physical stores can be found in Xi'an, Shaanxi's capital, and Xianyang, while "Yuanjia Village" tourism projects can be found nationwide, according to Wang from the village committee.