"Most of our profits have been put into industrial expansion, while the rest is for the improvement of villagers' living conditions," he added.

Under the guidance of Ren, and after accumulating enough funds, the village committee began operating a sesame candy factory and a red brick factory, earning profits on what amounted to a small initial investment.

In 1988, they established a cigarette filter factory and a filter paper factory, with the support of Hongta Group and a bank loan of about 40 million yuan. The two factories reaped impressive profits that same year, realizing combined gross revenue of 3.9 million yuan.

By 1992, the total yearly revenue of Dayingjie had reached more than 100 million yuan, making it the richest village under the jurisdiction of Yuxi City. In 1993 there were 28 township enterprises under its thumb, in such diverse areas as the manufacturing of aluminum foil and printer ink, copper and steel making, and solar power generation.

Meanwhile, an employment shift took place within the village as farmers left the fields to work in factories and other non-agricultural sectors.

"It is so rewarding to see our villagers driving to work in such a beautiful, neat and modern village, just like city people," Ren said.

'New countryside' at work

Today, Dayingjie is intersected by wide, straight streets lined with trees and flowerbeds, and local officials say the total area of parks exceeds that of crops. The village is divided into an industrial area in the west, entertainment district in the center and residential neighborhoods in the east, giving it the appearance of a miniature city in the midst of countryside.

Dayingjie's economy is now driven by the manufacturing and service sectors. More than 95 percent of the labor force works in industries such as tourism, entertainment and real estate development.

At the end of 2005, the village's gross revenue stood at 2.1 billion yuan, with 151 million yuan of pretax profits and 85.1 million yuan in taxes paid to the state, more than 1,500 times higher than in 1984. In contrast, the net income of each villager averaged 10,699 yuan.

The local government boasts that it provides employment, housing, education and retirement pensions for all residents. For example, children can attend kindergarten without paying tuition fees. The children of workers who come from neighboring villages can attend kindergarten for half price.

Employees are eligible to retire at age 54 and may receive pensions that range from 250 to 660 yuan a month, depending on their previous experience and profession. From birth to age 54, villagers receive financial assistance to buy endowment insurance. All villagers receive free daily necessities such as meat, cooking oil, eggs and vegetables.

A promotional video for Dayingjie, shown to visiting guests, shows smiling senior citizens dancing with children, playing instruments and lining up to receive wads of money. On the streets of Dayingjie there is a sense of relaxed ease, with many villagers sitting around on a leisurely afternoon and playing cards or chatting.

According to the local government, with a total investment of more than 200 million yuan, by 1995 every family in the village had moved into a new home with an average residential area of 50 square meters for each person, compared with the previous 8 square meters for each.

Dayingjie officials also highlight the village's election process. Leaders are elected every four years, and every villager over the age of 16 with an identity card is allowed to vote, said Zhang Yunchun, a local official.

"Everyone can be a candidate in Dayingjie, and the selected leaders will be publicized on bulletin boards to all villagers," he said, adding that the core leadership is most trusted and reelected every year, most recently with 95 percent of voter support.

The road ahead

In 1998, the village began the initial steps of restructuring its enterprises. The eight biggest key enterprises were preserved and strengthened through internal reform, and 20 small and medium-sized enterprises went through financial restructuring through mergers and acquisitions for a more diversified village economy.