Village Victory

by+Hu+Biliang

The Research Institute of Emerging Markets under Beijing Normal University organized a campaign to send a group of 28 from governmental departments of 14 developing countries to conduct a site investigation of Yantian Village of Fenggang Town， Dongguan City， Guangdong Province， as part of its masters program for students from developing countries co-sponsored by Chinas Ministry of Commerce and Ministry of Education. The campaign aims to help the candidates better understand Chinas dramatic changes and future development prospects after the country implemented reform and opening-up policies.

The village of Yantian， at the southernmost tip of Fenggang Town in Dongguan City， Guangdong Province， is home to over 3，000 permanent residents. Yantian covers 24 square kilometers and sits only a half hours drive from Luohu Control Point and Shenzhen Airport.

By the end of 2014， Yantian Villages total assets reached 2.83 billion yuan with a net estate of 2.34 billion yuan. Its residents earned a collective income of 190 million yuan in 2014， 72.36 million of which came from individual share dividends， with per capita participation profits of 24，000 yuan. The average annual household income has reached 350，000 yuan， ranking near the top of rural China.

The situation was not always so bright. Prior to Chinas implementation of reform and opening-up， the connectivity between the mainland and Hong Kong was far weaker. Shenzhen was nothing but a small fishing village， and Yantian was a village plagued by poverty.

Turning Point

One course of the training program for the 28 foreign students covers FDI （Foreign Direct Investment）， WTO and China， interpreting how foreign direct investment and international trade have hastened transformation development in China. Yantian presented a perfect case study. “FDI has played a direct， active role in accelerating the development of Yantian，” asserted the students. “And to a great extent， FDI promoted the villages transformation development.”

China began to implement the policies of reform and opening to the outside world at the end of 1978. The policies did not substantially influence Yantian until 1980， when farmland was contracted to households and the first enterprise from Hong Kong arrived to invest.

After 1980， a tremendous volume of investment from outside poured in， reaping groundbreaking changes in Yantians economy. Nearly every villager saw income swell. The village thrived on a tract of land spanning only 24 square kilometers that fostered 350 foreign-funded enterprises at its zenith.

In 1981， those who had once escaped the villages former poverty began returning to launch businesses. By the end of 1985， 10 such enterprises were booming. Their great endeavors drew more investors from foreign countries， such as Japan， Germany， and the United States. By the end of 1998， Yantian enterprises with foreign investment numbered over 430. Moreover， the village became a hot spot for private investors from all over China， pushing the count of investing enterprises based outside of Yantian to 700.

The stream of investments drove up demand for labor in the village. Joining some 1，500 laborers from the village， about 60，000 people from across the country now work there， bringing a total of 100，000 residents from outside the village， which has now become a small township.

Foundation for Development

During days of investigation， the students showed great interest in Yantians infrastructure.

Yantian enjoys a well-developed transportation system with four thoroughfares leading to areas outside the village. Now， 13 highways serve the village， 10 of which were constructed since the 1980s with village funds of more than 200 million yuan – the other three were built with state funds during the 1930s， 1960s， and 1970s， respectively.

Compared to other parts of rural China， Yantian stands out with a distinctive governance network for diversified education. A newer school called Zhentian was founded with collective investment and recruits students with local household registration. In 2007， the former elementary school was transformed into a public school for children of immigrants. The villages private school is known as New Century Talents， which serves 3，500 students ranging from kindergarten to high school. Every year， a handful of its graduates are admitted to top Chinese institutions of higher learning such as Tsinghua and Peking universities.

Yantian has developed a strong medical community too. It is home to one public hospital， one community service center， two private health stations， a large private hospital， 17 private clinics， 50 public clinics， and more than 10 drugstores， both state-funded and private.

Yantian villagers take pride in its expansive farmland and forests. Every year， the village invests over 3 million yuan in greenery. Its major park spans over 30 hectares and is complemented by a number of street parks and greenbelts.

Grass-Roots Leadership

Most of the group of mid-level leaders from central governments of developing countries had never before been to China. Even those who had were new to site investigations in rural areas. The campaign turned their perspectives of China upside down. “Incredible” was uttered in a number of different languages.

Also incredible is the fact that village leaders of Yantian have largely maintained the final say on decision making. To accept major investments， they dont need approval from upper authorities， but only a majority of village deputies. The villages collective leadership can make decisions on its own on small projects.

The process of electing its leading body has been widely acclaimed. An official bulletin board publicizes details of village affairs. All issues are addressed jointly by a team consisting of members representing three sides： the local Party committee， government， and collective economic organizations.