Forbes reports:
A major initiative to marketize China's countryside is under way. Under rural reforms passed Sunday by the Communist Party, peasants may for the first time be allowed to trade or rent out their land tenancies. The new policy stops short, however, of granting private ownership of land or allowing farmers to sell the land they work, as leaders struggle to preserve one of the fundamental pillars of the country's communist system.
The hope is that China, severely strapped for arable land, will use land more efficiently under this semi-marketized system and will reduce its agricultural deficit with the United States. The policy may be a boon for agribusiness, affording a cash stream to farmers, whose mounting riots in recent years have been a headache for the ruling party as it strives to maintain legitimacy. Some worry, though, that the policies could destabilize the country's delicate social fabric.
To read more:
http://www.forbes.com/markets/2008/10/13/china-land-reforms-markets-econ-cx_tw_1013markets04.html