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Poverty Alleviation in China: From Advancing Economic and Social Rights to the Prospects for Rural Development

News Report

2026-10-21
Poverty Alleviation in China: From Advancing Economic and Social Rights to the Prospects for Rural Development

© Image: YenKid in China

Introduction

Poverty is one of the most fundamental barriers to living a life of dignity and enjoying equal opportunities. Its consequences extend beyond livelihoods, affecting health, education, security, and the ability to participate in social life. Addressing poverty therefore occupies a central place at the intersection of economic development and the realization of human rights. Access to adequate income, public services, and social protection creates the conditions for individuals to develop their capabilities and plan for the future with greater confidence. Achieving these conditions requires policies that combine the expansion of economic opportunities and capacities with the distribution of opportunities and attention to disadvantaged groups.

Against this backdrop, China’s experience has gained particular significance in discussions of poverty alleviation strategies, given the size of its population and the scale of its development programs. The country’s efforts over recent decades to improve rural livelihoods and expand access to essential services and facilities raise important questions about the role of the state, the relationship between economic growth and public welfare, and the conditions necessary to sustain social progress. Examining this experience from the perspective of economic and social rights, however, requires simultaneous consideration of the achievements made, household living standards, and households’ capacity to cope with future challenges. Such an approach can also provide a basis for evaluating development policies and identifying both the opportunities and limitations of applying lessons from China’s experience in other societies.

 

Incidents

On February 25, 2021, Xi Jinping, President of China, announced at an official ceremony held ahead of the 100th anniversary of the founding of the Communist Party of China (CPC) that absolute rural poverty had been eradicated according to China’s national poverty standard. This achievement was the result of several decades of economic reforms and poverty alleviation programs. According to the Chinese government, 98.99 million rural residents who had been classified as poor under the national poverty line at the time were lifted out of poverty during the eight-year period from 2013 to the end of 2020. All 832 designated poor counties and 128,000 impoverished villages were also removed from the poverty list[1]. In this regard, President Xi Jinping declared that the fight against poverty had achieved a complete victory and that China had accomplished the arduous task of eliminating absolute poverty[2]. He further announced that nearly 1.6 trillion yuan in dedicated funding from central and local governments had been allocated to poverty alleviation over the eight-year campaign[3].

Experts have attributed poverty reduction in China to a combination of broad-based economic transformation and targeted support for disadvantaged regions and households. Alongside rising incomes, this process was accompanied by programs aimed at improving access to education, healthcare, housing, and basic necessities, thereby providing a basis for assessing progress in the realization of economic and social rights. According to an assessment by the World Bank, China’s approach to poverty reduction rested on two pillars. The first involved broad-based economic transformation to create new economic opportunities and raise average incomes. The second was the recognition that tackling persistent poverty required targeted support, initially directed toward areas disadvantaged by their geographical location and limited access to opportunities, and subsequently focused on individual households. The report also identifies several lessons from China’s experience for other countries, including the importance of education, an outward-oriented economic approach, sustained public investment in infrastructure, and structural policies that promote competition[4].

An example of this approach can be found in the Guangxi Zhuang Autonomous Region, where, according to the World Bank, information on the income, housing, education, and health of 1.55 million poor households was recorded in a database designed to identify needs and target assistance. The program also helped improve rural livelihoods by supporting agricultural cooperatives, providing vocational training, and expanding access to safe drinking water[5]. In addition, on September 7, 2026, the Chinese government unveiled a plan to improve investment and financing mechanisms for rural revitalization, with the aim of establishing a more sustainable and efficient investment system by 2030. The plan combines fiscal support, credit, insurance, bonds, and private capital to strengthen food security and modernize rural areas. Under the plan, banks will be encouraged to increase lending to major grain- and seed-producing counties and focus financing on grain production and supply security, rural industries, infrastructure, and innovation in agricultural technology. The plan will also expand agricultural insurance, including full-cost insurance and planting income insurance for staple crops such as rice, wheat, corn, and soybeans, while improving loan guarantees and risk-sharing mechanisms for agricultural borrowers[6]. Earlier, in 2017, China had introduced the Rural Revitalization Strategy. According to the United Nations Development Programme (UNDP), the country has since implemented a series of targeted policies and initiatives under this strategy to advance rural development, strengthen agricultural modernization, and improve living standards in rural communities[7]. According to the International Fund for Agricultural Development (IFAD), since China joined the Fund in January 1980, IFAD has supported 35 rural development projects in the country, directly benefiting 4.59 million households. Total investment in these projects has reached US$3.45 billion, of which US$1.3 billion has been financed through IFAD loans[8].

Official data released by the Chinese government indicate significant progress in several indicators related to poverty alleviation and the improvement of rural livelihoods. According to a report by China’s State Council, submitted to the Standing Committee of the National People’s Congress (NPC) on August 25, 2026, the per capita disposable income of rural residents in counties that had been removed from the poverty list increased from 12,588 yuan in 2020 to 18,627 yuan in 2025. This represented an average annual growth rate of 8.2 percent over the five-year period[9]. Furthermore, according to official statistics published by the National Bureau of Statistics of China (NBS), the country’s gross domestic product (GDP) reached approximately 140.19 trillion yuan in 2025, recording real economic growth of 5 percent compared with the previous year[10].

 

Challenges and Responses

  • Concerns over the Sustainability of Poverty Alleviation Achievements and the Risk of Falling Back into Poverty

Despite the eradication of extreme rural poverty under China’s national standard, ensuring sustainable livelihood security for vulnerable households remains a major challenge. Persistent urban–rural disparities, limited social protection coverage for some informal workers, and inadequate rural pension benefits may constrain households’ ability to cope with declining incomes and unexpected expenses. In this regard, the International Monetary Fund (IMF) has argued that fiscal policy should prioritize strengthening social protection to give people greater confidence to spend[11]. Against this backdrop, Bi Lixia, a deputy to the National People’s Congress (NPC), called in March 2026 for the minimum monthly pension for rural residents aged 70 and above to be increased to 400 yuan. The proposal came at a time when the national minimum monthly basic pension for urban and rural residents had reached 163 yuan following a 20-yuan increase in 2026[12]. Similarly, Liu Guozhong, Vice Premier of China, emphasized at a meeting held in Beijing on April 27, 2026, the need to maintain regular assistance, consolidate poverty alleviation achievements, and prevent large-scale relapses into poverty among rural residents[13]. Accordingly, China’s success in eliminating extreme poverty does not necessarily mean that poverty has been entirely eradicated or that economic vulnerability has come to an end.

In assessing this achievement, it is important to distinguish between China’s national poverty standard and international poverty measurement thresholds. Although the Chinese government has declared the eradication of absolute rural poverty under its national standard, and the World Bank has also acknowledged the country’s substantial progress in reducing extreme poverty, assessments based on higher poverty thresholds continue to indicate the presence of vulnerable populations. According to World Bank data, approximately 15.2 percent of China’s population lived below the World Bank’s upper-middle-income poverty line of US$8.30 per person per day in 2024, measured in 2021 purchasing power parity (PPP) terms. This threshold, used to assess poverty in upper-middle-income countries, differs from the national standard applied to determine the eradication of absolute poverty. Success in eliminating severe deprivation must therefore be distinguished from achieving higher levels of economic well-being, reducing inequality, and ensuring sustainable livelihood security.

  • Domestic Responses

On February 3, 2026, China’s central authorities issued the No. 1 Central Document, emphasizing the need to consolidate and expand poverty alleviation achievements within the broader framework of agricultural modernization and rural revitalization. According to Xinhua News Agency, the document, which outlines the country’s annual policy priorities, identified improving rural living conditions and enhancing farmers’ well-being as fundamental objectives. Within this framework, particular attention was given to maintaining regular and targeted assistance, providing more precise and timely support, and strengthening assistance for employment and productive activities. The document also emphasized adopting measures tailored to the development levels and specific conditions of less-developed regions. Developing local industries, stabilizing employment for rural migrant workers, and supporting grain producers were among the measures envisaged to ensure sustained growth in farmers’ incomes. Improving infrastructure, coordinating the delivery of basic public services, and protecting the rural environment constituted other key components of the policy framework[14].

At a press conference on September 29, 2026, Zhang Zhu, China’s Minister of Agriculture and Rural Affairs, emphasized the importance of consolidating poverty reduction achievements through job creation, the development of local industries, and increases in farmers’ incomes. He announced that, following the conclusion of the five-year transition period from 2021 to 2025, China had entered a new phase of regular and targeted assistance. According to Zhang, a nationwide system covering all provinces and the entire rural population had been established to identify individuals at risk of falling back into poverty. To date, all 2.56 million people identified as being at risk of returning to poverty had received targeted assistance. The central government also allocated approximately US$26.26 billion in 2026 to support rural industries, employment, and development-oriented assistance in less-developed areas. Officials from the Ministry of Agriculture and Rural Affairs also identified the development of industries suited to local capacities, the strengthening of agricultural product processing, and the expansion of rural services as measures to increase incomes[15].

In an academic assessment of China’s poverty alleviation policies, Wenguang Zhang and his colleagues at Beijing Normal University, in a study published in the China Policy Journal, found that the Targeted Poverty Alleviation (TPA) Strategy had been effective in reducing multidimensional poverty among rural households, particularly in villages officially designated as impoverished. Drawing on household data from 2012, 2014, 2018, and 2020, the study found that the strategy’s effects were more pronounced in improving incomes and living standards, while shortcomings remained in food security, nutrition, and the sustainability of rural livelihoods. On this basis, the authors emphasized that poverty alleviation policies should move beyond an exclusive focus on income and address the various dimensions of household well-being. They recommended incorporating food security and nutrition indicators into evaluation systems, strengthening farmers’ productive capacities, and expanding access to subsidized insurance. They also considered the development of cooperatives, rural entrepreneurship, and the diversification of livelihood sources essential to sustaining these achievements. In the researchers’ view, continued poverty reduction requires policies tailored to regional conditions and stronger institutional and local capacities[16].

  • International Responses

In March 2021, the United Nations Development Programme (UNDP) published an article by Beate Trankmann, its Resident Representative in China, addressing the country’s poverty alleviation achievements and the need for continued social protection. Welcoming the announcement of the eradication of extreme rural poverty, the organization described the lifting of more than 750 million people out of poverty over four decades as a significant contribution to global poverty reduction and progress toward the first Sustainable Development Goal (SDG 1). The article attributed China’s progress to sustained political commitment and the implementation of targeted policies and measures. Nevertheless, UNDP emphasized that ending extreme poverty does not mean the end of economic vulnerability and that continued support is necessary to prevent households from falling back into poverty. The organization also highlighted the need to address non-income dimensions of poverty, including education, health, and housing, and to narrow the urban–rural divide. Its recommendations further included expanding migrant and informal workers’ access to public services, insurance, and social protection[17].

In a statement issued on July 23, 2026, following the discussion of a new Country Partnership Framework (CPF) for China for the 2026–2031 period by its Board of Executive Directors, the World Bank Group identified the lifting of more than 800 million people out of extreme poverty as one of the achievements of the country’s four decades of growth and transformation. Anna Bjerde, World Bank Managing Director of Operations, described China’s development trajectory during this period as remarkable and emphasized expanding cooperation centered on knowledge, innovation, and shared solutions. The framework prioritizes productivity-led growth and the creation of better jobs, strengthening human capital and social protection in response to demographic changes, and developing resilient and sustainable infrastructure while protecting natural ecosystems. Referring to the challenges of population aging and the changing structure of China’s economy, the World Bank also stressed cooperation in developing solutions applicable to other emerging economies. According to the statement, as lending gradually declines, sharing China’s development experience in areas such as ecosystem restoration, water management, and agricultural productivity will assume a more prominent role in the partnership, in response to demand from other member countries[18].

At the 2026 Global Poverty Reduction and Development Forum on May 27, 2026, James George, Acting Resident Representative of the United Nations Development Programme (UNDP) in China, described the country’s efforts in poverty alleviation strategies and multilateral initiatives as highly significant and influential. Expressing appreciation to the Chinese government for advancing the Global Partnership for Poverty Alleviation and Development (GPPAD), he welcomed its emphasis on dialogue, knowledge-sharing, and South–South cooperation. Referring to UNDP’s cooperation with China since 1979, George explained that the partnership had evolved from supporting local development initiatives to facilitating international exchanges of experience. He identified UNDP’s support for the establishment of the International Poverty Reduction Center in China (IPRCC) in 2005 as a milestone in this cooperation, creating opportunities for mutual learning among countries of the Global South in rural development, livelihoods, and agricultural modernization. He further emphasized that climate change, economic uncertainty, and widening inequalities were placing development gains under pressure, and that sustaining these achievements required stable financing and stronger community resilience[19].

Similarly, in an article published on the UNDP website on September 16, 2026, Stefan Liller, the organization’s Resident Representative in China, described the country’s development trajectory over recent decades as remarkable and identified China as an increasingly important partner in international development. He emphasized that sharing China’s experience in poverty reduction, renewable energy, digital innovation, and infrastructure, together with the provision of affordable long-term financing, could help advance the Sustainable Development Goals (SDGs) in other countries. According to Liller, China’s Global Development and South-South Cooperation Fund, backed by US$4 billion in funding, had supported projects in more than 60 countries, benefiting over 30 million people. In addition, UNDP, in cooperation with the Chinese government, had implemented nearly 40 projects across 26 countries, benefiting more than 18 million people. Liller stressed that the effectiveness of these partnerships depended on their responsiveness to local needs and the participation of beneficiary communities. He also emphasized strengthening multilateral cooperation, expanding the engagement of academic and financial institutions, and investing in local capacities[20].

Furthermore, in its presentation of the 2026–2030 United Nations Sustainable Development Cooperation Framework for the People’s Republic of China, published on May 31, 2025, the United Nations in China described the country’s economic and social progress over the preceding 45 years as remarkable. The assessment identified the eradication of absolute rural poverty in 2020 and substantial improvements in social indicators, including health and education, among China’s achievements. The United Nations also emphasized that, following several decades of rapid economic expansion, China had entered a new phase focused on high-quality development. In the organization’s assessment, China’s orientation toward innovation-driven, coordinated, green, open, and broadly shared development is substantially aligned with the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). Noting that the new cooperation period coincides with the final five years of the 2030 Agenda, the source considers China’s development success essential to the global achievement of the Sustainable Development Goals[21].

 

Conclusion

China’s experience in poverty alleviation demonstrates that effectively combating poverty requires more than improvements in economic growth indicators; it also requires translating development capacities into genuine opportunities for the enjoyment of economic and social rights. Lifting nearly 99 million people out of rural poverty between 2013 and 2020, alongside infrastructure expansion, improved access to essential services, and the implementation of targeted assistance, illustrates the role of public policymaking and coordinated state intervention in reducing structural deprivation. These achievements can be assessed within the framework of Articles 2, 9, 11, 12, and 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly the obligation of states to use the maximum of their available resources to progressively realize rights such as social security, an adequate standard of living, health, and education. Nevertheless, distinguishing between the eradication of absolute poverty under the national standard and the achievement of sustainable livelihood security remains essential. Persistent urban–rural inequalities, inadequate social protection in certain areas, and households’ vulnerability to economic risks demonstrate that crossing the poverty line does not necessarily signify the full realization of these rights.

From a human rights perspective, China’s current challenge can be understood as a transition from policies focused on lifting people out of poverty toward the institutionalization of sustainable and equitable guarantees of social well-being. This imperative is consistent with the International Labour Organization’s (ILO) Social Protection Floors Recommendation, 2012 (No. 202) and the Committee on Economic, Social and Cultural Rights’ 2023 concluding observations on the third periodic report of China, particularly regarding the adequacy of benefits, the reduction of social inequalities, and the removal of barriers preventing rural migrant workers from accessing public services. Accordingly, reforming restrictions arising from the hukou (household registration) system, improving the adequacy of rural pensions in line with actual living costs, and ensuring the portability of insurance coverage across regions could help reduce structural inequalities. Furthermore, strengthening systems for identifying vulnerable households and transforming them into early-warning mechanisms based on indicators such as declining incomes, healthcare expenses, food insecurity, and agricultural losses would facilitate preventive interventions and reduce the risk of households falling back into poverty.

In the next phase, sustaining China’s achievements will require linking financial and social support to the economic empowerment of local communities, increased agricultural productivity, diversified income sources, and stronger household resilience. In this regard, it is recommended that evaluations of poverty alleviation programs move beyond exclusively income-based indicators to include measures such as the rate of return to poverty, pension adequacy, food security, the proportion of household expenditure devoted to healthcare, and equitable access to public services. Publishing regionally disaggregated data and establishing effective mechanisms for appealing against and seeking redress for exclusion from social protection could also enhance transparency, accountability, and the ability to claim and enforce rights. Such an approach is aligned with Targets 1.3, 1.4, and 1.5 of the 2030 Agenda for Sustainable Development and could provide an adaptable model for other countries. Ultimately, the principal measure of China’s success in the next phase will not be merely the preservation of its statistical achievements in poverty alleviation, but rather the transformation of development assistance into institutionalized, sustainable, and enforceable guarantees for the equal enjoyment of economic and social rights.

 

References

[1] Xinhua. (2021, March 23). China unveils guideline for poverty alleviation outcomes. Government of China. From: https://english.www.gov.cn/policies/latestreleases/202103/23/content_WS605926e8c6d0719374afb365.html

[2] Consulate-General of the People’s Republic of China in MUMBAI. (2021, April 12). Full Text: Poverty Alleviation: China’s Experience and Contribution. Consulate-General of the People’s Republic of China in MUMBAI. From: https://mumbai.china-consulate.gov.cn/eng/zxhd/202104/t20210412_8954255.htm

[3] Reuters., & SBS News. (2021, February 26). Chinese President Xi Jinping declares ‘complete victory’ in campaign to end rural poverty. SBS News. From: https://www.sbs.com.au/news/article/chinese-president-xi-jinping-declares-complete-victory-in-campaign-to-end-rural-poverty/q8legknwv

[4] World Bank Group. (2022, April 1). Lifting 800 Million People Out of Poverty – New Report Looks at Lessons from China’s Experience. World Bank Group. From: https://www.worldbank.org/en/news/press-release/2022/04/01/lifting-800-million-people-out-of-poverty-new-report-looks-at-lessons-from-china-s-experience

[5] World Bank Group. (2021, August 9). Supporting Institutional Innovations in Poverty Reduction in Guangxi. World Bank Group. From: https://www.worldbank.org/en/news/feature/2021/08/09/supporting-institutional-innovations-in-poverty-reduction-in-guangxi

[6] Cao, E., & Lee, L. (2026, September 7). Beijing expands funding tools to support food security, rural modernization. Reuters. From: https://www.reuters.com/world/asia-pacific/beijing-expands-funding-tools-support-food-security-rural-modernization-2026-09-07/

[7] UNDP. (2025, June 3). Rural Revitalization in China. UNDP. From: https://www.undp.org/china/publications/rural-revitalization-china

[8] IFAD. (2025, October 22). Investing in rural people in China. IFAD. From: https://www.ifad.org/en/w/publications/investing-in-rural-people-in-chi-1

[9] Xinhua. (2026, August 25). China reports steady consolidation of poverty alleviation gains. Government of China. From: https://english.www.gov.cn/news/202608/25/content_WS6a8d955cc6d00ca5f9a0cc92.html

[10] National Bureau of Statistics of China. (2026, February 28). Statistical Communiqué of the People’s Republic of China on the 2025 National Economic and Social Development. National Bureau of Statistics of China. From: https://www.stats.gov.cn/english/PressRelease/202602/t20260228_1962661.html

[11] Garcia-Macia, D., & Jain-Chandra, S., & Kothari, S., & Xu, Y. (2026, February 18). How China’s Economy Can Pivot to Consumption-led Growth. IMF. From: https://www.imf.org/en/news/articles/2026/02/18/cf-how-chinas-economy-can-pivot-to-consumption-led-growth

[12] Wu, X. (2026, March 13). China’s rural pensions in focus as lawmakers fight for farmers’ fair share amid income gap. South China Morning Post. From: https://www.scmp.com/economy/china-economy/article/3346368/chinas-rural-pensions-focus-lawmakers-fight-farmers-fair-share-amid-income-gap

[13] Xinhua. (2026, April 28). Chinese vice premier urges regular assistance, consolidation of poverty alleviation. Government of China. From: https://english.www.gov.cn/news/202604/28/content_WS69effa8fc6d00ca5f9a0aa94.html

[14] Xinhua. (2026, February 3). China outlines plans for agricultural modernization, rural revitalization. Government of China. From: https://english.www.gov.cn/policies/latestreleases/202602/03/content_WS6981dce7c6d00ca5f9a08e65.html

[15] Xinhua. (2026, September 29). China expects bumper 2026 grain harvest as agricultural, rural modernization gathers pace. Government of China. From: https://english.www.gov.cn/news/202609/29/content_WS6abba28ec6d00ca5f9a0d856.html

[16] Zhang, W., & Zhou, Y., & Han, W., & Pang, Y. (2026). Towards Multidimensional Poverty Reduction: An Empirical Assessment on the Effectiveness of China’s Targeted Poverty Alleviation Strategy. China Policy Journal. From: https://chinapolicyjournal.org/2026/09/02/towards-multidimensional-poverty-reduction-an-empirical-assessment-on-the-effectiveness-of-chinas-targeted-poverty-alleviation-strategy/

[17] Trankmann, B. (2021, March 15). Reducing poverty to build inclusive future for all. UNDP. From: https://www.undp.org/china/blog/reducing-poverty-build-inclusive-future-all

[18] World Bank Group. (2026, July 23). World Bank Group Board Discusses New Country Partnership Framework for China. World Bank Group. From: https://www.worldbank.org/en/news/press-release/2026/07/23/world-bank-group-board-discusses-new-country-partnership-framework-for-china

[19] UNDP. (2026, May 27). Remarks by Mr James George at the 2026 Global Poverty Reduction and Development Forum. UNDP. From: https://www.undp.org/china/speeches/remarks-mr-james-george-2026-global-poverty-reduction-and-development-forum

[20] UNDP. (2026, September 16). SSC drives sustainable development. UNDP. From: https://www.undp.org/china/blog/ssc-drives-sustainable-development

[21] RCO. (2025, May 31). 2026–2030 United Nations Sustainable Development Cooperation Framework for the People’s Republic of China. China UN. From: https://china.un.org/en/311155-2026-2030-united-nations-sustainable-development-cooperation-framework-people%E2%80%99s-republic

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