The Spatial Transformation of Traditional Rural Villages Driven by Private Investment in China’s Developed Areas: The Case of Daxi Village, Anji County

Abstract. Restricted by political ideology and institutional barriers, the development of rural China has in the past relied heavily on government spending. However, with institutional reform and the development of a market economy, private investment is playing an increasingly important role in rural development, especially in traditional rural villages. Daxi village in Anji County of Zhejiang Province is a typical case. Investment in the Tianhuangping Hydropower Station and the Beautiful Villlages policy supported by the public sector (government and state-owned enterprises) have been important driving forces in attracting private investments in rural tourism and have had a profound impact on the physical, economic and social space of Daxi village. This research used interviews with key subjects, including government officials, non-local investors and returned migrants, and a questionnaire survey among local residents. It was found that with the growth of private investment, location, transportation, natural resources, development policies and superior human resources are the most important factors that drive spatial transformation. Finally, it also offers a discussion on how the Daxi model may shed light on rural development in developing countries with an urban-rural dichotomy.