To revitalize its rural areas and prevent "the end of the peasants", China should attract people and capital to the rural area. To do so, China cannot rely on the land contracting system under the small-scale farming system to "fix" the rural population. There must be breakthroughs in the reform of the rural system. First of all, there should be reform of the rural land system, including the reform of the homestead and contracted land. Next, there new agricultural cooperatives and new economies of scale should be promoted to introduce new production relations. Finally, farmers should be encouraged to locate to cities in order to free up land and space.