EN
This paper is exploring the Rural Fee Reform from 2002 and its effect on the relationship between state and peasant. Based on the studies in 12 townships, 6 counties, the author found that the basis of local government finance had been transformed from rural fees and taxes to inter-governmental transfers and debts. This may cause some fundamental changes in state-peasant relationship: the ties between local government and peasant are becoming loose and the state power might start to retreat from rural societies.