This article, based on primary research in China's Shandong province,
examines the rise of the village conglomerate (VC), one of the most si
gnificant aspects of economic and social development in rural China si
nce the mid-1980s. It describes the emergence of the VC in the new pol
icy environment, discusses the rise of rural elites and the first gene
ration of Chinese peasant entrepreneurs with the development of the VC
, and highlights the VC path and its implications for China's developm
ent in general and for rural development in particular.