This book shows the impact of the current economic reform on the income development of peasant households in the People's Republic of China. The research was based on detailed information derived from book-keeping records of the sample households of a few selected regions in central China, the national statistical network, local statistics and chronicles. Moreover, the basic tools of economic analysis were applied to the main problems of Chinese rural economy: marketing and pricing of agricultural input and output goods; structural adjustment; labour productivity and outmigration; income distribution; farmer's decision on investment and consuption. This will lead to a better understanding about current development of China.