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AbstractIn recent years, Chinese rural production relationship has been transforming comprehensively. According to the field survey in six cities of Southwest China’s three provinces, this study summarizes the process of the agricultural enterprise. Because the local governments and rural capital are induced by achievements and interests, farmland transfer is forced by administrative organization. In this process, the peasants have lost the right to operate the farmland. They had to sell their labor for a living, and with difficulty obtain farmland revenue. The results indicated that the peasants are moving towards proletarians. Because of the restriction of the rural soil system in China, they are not absolute proletarians but “semi-proletarians”. This situation will bring great challenge for governing and stabilizing the countryside in China. It is recommended to effectively combine local conditions, and take into account the efficiency and fairness to promote the large-scale land transfer and the development of agricultural enterprise.