The people's communes in China, were formerly the highest of three administrative levels in rural areas during the period of 1958 to 1982-85 until they were replaced by townships. Communes, the largest collective units, were divided in turn into production brigades and production teams. The communes had governmental, political, and economic functions.

The People's commune was born during the Great Leap Forward, when Chairman Mao had a vision of surpassing the United Kingdom and the United States in a short period of time in terms of steel production. Mao also wanted to mobilize peasants to undertake huge water projects during the winter slack seasons in order to improve agricultural productivity.

In the commune, everything was shared. Everything originally owned by the households, private animals, stored grains and other food items were also contributed to the commune. Everything originally owned by the households, private animals, stored grains and other food items were also contributed to the commune. A work point system was used to calculate rewards, and those who earned above-average work points could be eligible for cash rewards.