The CPC Central Committee's Proposal on the Formulation of the 11th Five-Year Plan (2006-2010) for National Economic and Social Development clearly states: "Building socialist new villages is a major historical mission in China's modernization process."

The target and requirement for building socialist new villages can be summed up as follows: Developed production, well-off life, civilized rural customs, a neat and tidy appearance of village and democratic management. Such scenarios give full expressions to the requirements for rural economic, political, cultural and social development under the new situation.

Building socialist new villages requires upholding the principles of "giving more to villages, taking less from them and breathing new life to them", and "industry nurturing agriculture and cities supporting villages", improving farmers' living quality, bringing about a relatively big change in the outlook of rural areas as a whole. Emphasis is placed on strengthening plans for the construction of villages and towns and improving the environment, and on the construction of new villages and towns; developing various social undertakings in rural areas, fostering new farmers; strengthening construction of rural democracy and legal system and construction of spiritual civilization and encouraging new social practices.