Abstract: The inner motive for changes in china’s rural economic system lies in its extremely backward productivity and wide spread crises in agricultural economy resulting from the traditional “favor strategy”.The course of changes in china's rural economic system from 1978 to 1996 proved that the practice of “double-track pricing system” failed to reach the int ended goal.The “city-biased” inertia caused by “favor strategy” led to contradictions between an increase of peasants’ income and an increase of grain supply,which in turn,to a certain extent,led to irregulas rise and fall in production and supply of grain,in addition to grain shortage in general.All this will leave unfavorable impact on economic behavior of peasants in various economic regions.A breakt hrough for further rural reform in china,the author concludes,should be imposing low-price purchase of major agricultural products.