Abstract
Recent reforms in China have far‐reaching implications for the form and content of village political and economic institutions and their relations with peasant households, family and kin groups. This article examines the recent separation of economic and political authority at the local level and the substitution of new township and village institutions for the commune, production brigade and production teams. With the development of the commodity economy and new economic associations, the government predicts a diminution in the production responsibility and autonomy of the newly emergent peasant household. However, a preliminary examination of the politics of the local economy suggest that peasant households may have developed alternative strategies based on new family forms and networks that potentially challenge village‐wide political and economic structures.

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