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The issue of rural development is the primary one concerned in our country, and is the bottleneck of restricting the development of our socialist market economy. In China’s rural the basic management system is a fully combined two-level management system based on the household contract management. To construct a socialist new rural it is necessary to insist on the basic rural management system, so as to stabilize peasants’ expectation on land operation better, enhance the labor productivity hence developing rural economy, arouse peasants’ enthusiasm in increasing the investment in the land, and establish the idea of long-term operation and sustainable development. This article studies the household contract responsibility system, analyzes the main problems and restricting factors existed in the household contract responsibility system, proposes some feasible suggestions and countermeasures, such as building national ownership of land, rationally adjusting industry structure, protec