• "Ten Thousand Villages" marketing project yielded an initial effect.
• 70,000 standard rural shops were newly constructed and renovated in 2005.

In order to implement the important arrangement of the Party Central Committee and the State Council on rural market, the Ministry of Commerce regarded developing rural market as the most important part in the work of domestic trade, promulgated and implemented the "Ten Thousand Villages" Marketing Project from February 2005.

Main content of the Project was to gradually carry out chain operation in rural areas, endeavor to make 50% administrative villages and 70% towns have standard rural shops within 3 years, set up a rural modern network of distribution led by urban shops, drove up by shops in township as main force and based on rural shops, improve consumption environment in villages to meet the requirement of farmers' consumption and to promote the development of agricultural industrialization.

1, General status on "Ten Thousand Villages" Marketing Project in 2005

In 2005, “Ten Thousand Villages" Marketing Project was demonstrated in 777 counties and cities by 1150 distribution enterprises and it was predicted that 70 thousand standard rural shops were newly constructed and renovated.

First, the Ministry of Commerce made an all-round arrangement and led the construction of "Ten Thousand Villages" Marketing Project. The Ministry released 12 working documents, prescribing the principle, aim, content, form, criterion, procedures and policies and measures of the demonstrations, and held working conferences in April and September for specific arrangement. The administrative departments of commerce at all levels went to township and villages and made a large number and deep investigation and study, drafted and implemented the program, and performed local demonstration work in various forms.

Second, national finance strongly supported and ensured the construction of "Ten Thousand Villages" Marketing Project. The Ministry of Finance together with the Ministry of Commerce issued policy of capital support and specified to give interest subsidy to distribution centers of demonstration enterprises with a rate of no less than 3% in central and western regions and no less than 2% in eastern region, to give direct subsidy to shops newly constructed in rural areas: RMB2000 for shops in township, RMB3000 for shops in village and RMB800 more for every shop in central and western region.

Third, bank credit took part in with initiative the establishment of "Ten Thousand Villages" Marketing Project. The State Development Bank specially published guiding opinions of appraisal and ordered all branches to support the major enterprises and projects recommended by the Ministry of Commerce and actively promoted the use of policy-related loan in the "Ten Thousand Villages" Marketing Project.

Fourth, local government built an environment to push forward the construction of "Ten Thousand Villages" Marketing Project. Leaders from Hubei, Guangdong, Anhui, Sichuan, Xinjiang Production & Construction crops made important instructions for the project, Beijing, Tianjin, Hunan and Guangxi appropriated a special fund from the financial budget and local governments of Zhejiang, Shandong and Anhui provinces viewed the establishment of rural distribution network as the performance indicator of the achievements of relative leading group.

Fifth, distribution enterprises actively participated and guided the establishment of "Ten Thousand Villages" Marketing Project. Activity and creativity of enterprises rose to an unprecedented height and they sought in 3 aspects: for modern distribution mode, for localization of operation mode and for diversified utilization of networks.

2, "Ten Thousand Villages" Marketing Project yielded an initial effect in 2005.

First, in order to establish a shopping environment of saving money, time and trouble, the Project guaranteed the consumption of farmers and kept them away the injury from counterfeit and shoddy goods through chain operation and centralized distribution so as to guarantee the quality of food and farming material.

Second, the Project provided opportunities for distribution enterprises to prosper rural market, mainly in the following aspects: turnover increased by times; market share of rural shops enlarged; cost of distribution lowered.

Third, the Project drove up an all-round development and improved appearance of rural areas. Rural shops newly constructed or renovated tidy and special views in rural areas.

Fourth, the project provided job opportunities for farmers and eased the pressure of employment.