A symbol of China's rural reforms, Xiaogang became famous in 1978 after 18 of its farmers made a secret pact to resist the country's egalitarian agricultural system. The pact meant that after the farmers had handed a certain percentage of their produce to government, they were able to keep the rest for themselves.

The move turned out to be history making and unleashed farmers' productivity that had remained dormant under the collective commune system. The central government approved the new system and the model was adopted across the country.