Land, the main form of wealth in traditional China, was divided equally among all the landowner's surviving sons when he died. Thus, as China's population grew, the landholdings became smaller and smaller, and many people were very poor. In the first half of the 20th century the family as a social unit came under severe stress. Rural conditions were bad, income was low, and food was often scarce. Health care was poor or nonexistent for most peasants, and mortality rates were high. Civil unrest, warfare, and foreign invasions added to the difficulties.

After the Communist revolution in 1949 rural conditions stabilized. Private ownership of land was abolished, but each peasant family was given a small plot to farm. Health care improved. The fluctuations in the food supply leveled off and life expectancy increased. Living conditions for the average peasant are generally better today than they were in 1949, and there are opportunities for at least some education. All these things have meant a considerable improvement in the quality of life and greater security for the family as a social unit.

Today some rural families are still likely to have three generations under one roof. Despite state ownership of the land, they once again serve as basic production units. The Production Responsibility System, initiated in 1978, permits individual families to contract with their local production team or brigade to lease land for farming. Production quotas are also contracted. Whatever is left after taxes are paid and quotas are met belongs to the family. If a family works hard, it can meet its contract quotas and also produce a surplus for consumption or sale. This program was designed to stimulate production, but one result has been to strengthen the role of the traditional family as a consuming and producing unit.

Urban family life is different from that in rural areas. In the cities, families usually are smaller, often composed only of parents and children. Since both parents work, the children are left in day-care centers or schools. Sometimes couples are split up if their work units are not close together, and husband and wife may see each other only rarely. Despite such problems, family life for most people in the cities is stable, and family ties continue to play a major role in the lives of both parents and children.