Some writers argue that socialist strategies of development, including the Chinese, have been examples of strong 'urban bias'. Others believe China has pursued a 'rural-biased' strategy. This chapter investigates the applicability of both these analytical categories, and suggests that the realities of rural-urban relations in post-revolutionary China are more complex than either of these simple characterisations allows. Since the central concern of poor people is their standard of living, the chapter examines the evidence on this, the most fundamental aspect of urban-rural differentiation. Having examined the evidence on income and standard of living in town and countryside, it looks at the political and ideological issues that helped shape the policies that influenced the socio-economic outcomes. In investigating the applicability of the political theses to the Chinese case, the chapter also examines the socio-political character of the Chinese state itself and the relationship of this state to society and the play of political interests.