In the late 1980s China entered a period of reform and opening-up that catalyzed rapid urbanization and granted rural society greater autonomy in resource allocation, thereby expanding the developmental space for peasants to a certain extent. At the same time, despite more than 48 years having passed since the inception of reforms, party leadership under the auspices of the Chinese Communist Party (CCP) continues to play a decisive role in China’s rural society. Today, it is no longer possible to view Chinese rural society merely as a platform for agricultural production; rather, it must be understood as a complex social formation. This transformation has been accompanied by the emergence of new social strata, including a rural middle class that increasingly acts as a proactive agent of development. Unlike traditional peasant households, these new agents have access to education, digital technologies, capital markets, and state support programs, enabling them to play a pivotal role in the implementation of neo-endogenous development strategies. Reforms in China have progressed unevenly, with the eastern regions generally regarded as more developed and prosperous. Since the beginning of the 21st century, neo-endogenous development theory has achieved a theoretical breakthrough, moving from dualism toward hybrid models, while also fostering community-led, networked, and consultative approaches to innovation in rural society. Neo-endogenous development theory thus provides a conceptual framework for understanding the sustainable development of China’s rural society.