KEY POINTS Strengthening Rural Industries toBoost Income Growth in GuizhouProvince, People’s Republic of China •Guizhou Province still facesrural industrial developmentchallenges, includingweak value chains and lowparticipation by vulnerablegroups. Employability amonglow-income householdsis constrained by limitededucation and poor health,hindering their capacityto benefit from industrialdevelopment. Women inGuizhou Province facesystemic disadvantages ingender-segregated rurallabor markets. Chongshang ZhangQibin HeKevin Zhigang ChenYue LIConsultantsNAREE International Limited Yajing WangSenior Economics OfficerPRCM, ADB Angeli V. RosalAssociate Project OfficerEast Asia DepartmentADB Akiko Terada-HagiwaraPrincipal Country SpecialistPeople’s Republic of ChinaResident Mission (PRCM)Asian Development Bank (ADB) •This brief recommends(i) establishing amarket-oriented ruralindustry support system;(ii) improving mechanismsto help farmers benefitmore from agriculturaldevelopment; (iii) fosteringinnovation to develop theagricultural value chain;(iv) leveraging local strengthsto promote high-quality,specialty industrialbrands; and (v) enhancingemployability amonglow-income groups andstrengthening the local socialsecurity safety net. BACKGROUND The People’s Republic of China (PRC) has implemented four major povertyreduction plans, in 1986, 1994, 2001, and 2011. In the mid-1980s, the governmentintroduced the policy of allowing certain areas and groups to “get rich first,” underwhich 331 impoverished counties—identified based on per capita income—wereprovided with development funds, subsidized loans, and relief programs. The secondplan expanded coverage to additional rural areas, increasing the number ofdesignated impoverished counties to 592. The third plan, initiated in 2001, shiftedthe focus to household-level poverty alleviation. The fourth plan, starting from2011, adopted the “targeted poverty alleviation” strategy, combining economicdevelopment initiatives, social programs including education and health care,and ecological protection efforts to eradicate extreme poverty.1By the end of2020, the PRC had lifted the final 99 million rural impoverished people out ofpoverty—achieving its goal of a complete eradication of extreme poverty. ISBN 978-92-9277-638-1 (print)ISBN 978-92-9277-639-8 (PDF)ISSN 2071-7202 (print)ISSN 2218-2675 (PDF)Publication Stock No. BRF260000-2DOI: http://dx.doi.org/10.22617/BRF260000-2 ADB BRIEFS NO. 379 tourism. The project team systematically analyzed the developmentmodels and characteristics of these industries, focusing on laborparticipation rates, advantages, and challenges facing low-incomegroups and women in developing integrated production, supply,and value networks of local income-generating sectors withthe potential for future growth. Annex 1 lists details on selectedindustries and counties. After this was achieved, the PRC shifted the focus of ruralinitiatives to comprehensively promoting rural revitalization2andraising incomes of low-income groups in rural areas. Guizhou Province in the southwest of the PRC has a mountainousterrain interspersed with plateaus of sparse, infertile soil, whichmeans it has been the scene of a long struggle against poverty.This struggle has seen the achievement of significant victories.By 2020, all 66 of its poverty-stricken counties and more than9 million of its impoverished people had been lifted out of poverty,with about 2 million relocated from remote mountain areas tomore accessible locations. MAIN FINDINGS OF THE STUDY While rural specialty industries in Guizhou have experiencedsignificant growth, supported by government policies and favorableecological conditions, some regions lack comprehensive planningfor industrial positioning and spatial distribution. This has resultedin repetitive production and heightened market risks, particularlybecause of excessive specialization in similar products. In addition,earlier poverty alleviation strategies have focused on addressinghousehold survival issues through traditional farming and breeding,which require a low level of capital and technical inputs. Therefore,the agriculture sector has often adopted low-input productionmodels, which has become an obstacle to the modernization of theagricultural industry. Industrial development is a key driver of rural revitalization.Guizhou has committed to developing its leading specialtyagri-based industries, including tea, fungi,Rosa roxburghii(the “Chinese wild rose,” a colorful bushy plant with small ediblefruit known for its high nutritional value), and free-range andorganic poultry. This focus has established a strong basis forindustrial development. The Guizhou government has alsoformulated government-backed supportive policies and set upspecific supporting funds. These initiatives aim to promote theintegrated development of the primary, secondary, and tertiaryindustries in rural areas. They also aim to enhance agriculturalquality and efficiency, t