"To run the business, sometimes I had to be authoritative, or the villagers would destroy the farm."

Changes came in July, when the county government awarded the village 300,000 yuan ($43,600) to promote the local economy.

The government stated that the money was the collective property of all the villagers and could only be used to invest in locally based private firms, with the focus on sustainable development.

There were few better investment options in the village than Liu's nectarine farm.

With the government funds and 1 million yuan from Liu's own company, the village founded a subsidiary.

Liu was then able to rent another 3 hectares of land from the local villagers, increasing the area of the nectarine farm to more than 13 hectares.

"After that, many of the villagers agreed to extend the rent term from 15 years to 50 years," he said.

According to Liu, the village as a whole owns a 23-percent stake in the company, while villagers who rent land to the company own another 20 percent.

"The remaining 54 percent is owned by my company, which means I am the largest stakeholder," he said.

The village will get at least 30,000 yuan annually from the subsidiary as a bonus. And the land owners will be given 400 yuan for each 0.07 hectares of land annually in the first three years, starting last year - a relatively low price to help support the company - and 600 yuan starting from the fourth year.

zhulixin@chinadaily.com.cn