Abstract: To persist in and improve the basic system for rural operations is not only, on the basis of seriously summarizing historical experiences, a denial of the traditional “centralization only” collective operation system under the people’s commune system that is no separation between the government and the community, but also an affirmation of the need of “centralization” on the basis of “decentralized” family contract after the reform of implementing the family contract system in rural areas. To really put into effect the “combination of centralization and decentralization” is not only an objective requirement of further development of China’s agricultural productivity, but also an internal requirement of the socialist relations of production. “Centralization” must comply with the requirements of the “two insistence”, namely, insisting to the collective ownership of rural land and insisting to the household contract system of farmers, while the co-operations are the form of economic organization in line with the requirements of the new “centralization”. However, how to build the co-operations? There are two different ways in practice: Tangyue village model and Nanmeng village model. The former is a model of combination of village and cooperation, the later is a model of collective shareholders in the cooperation. What is the difference between them? This paper compares and reflects on the two models from the three aspects of system structure, subject relationship and interest mechanism.

Key words: basic system for rural operations; combination of centralization and decentralization; cooperation