China's Township-Village enterprises (TVEs) sprang up in 1980s. With the energetic support of the state they witnessed a surge of development. Meanwhile they have played a positive role in helping improve the rural productivity, solve the problem of surplus labor force, raise the income of farmers, and narrowed the gap between rural areas and cities. They are now regarded as one of the key forces in leading China's economic and social development. The rapid development of township-enterprises has changed the pattern of the rural economy from the traditional economic structure.After 1990s, the process of marketization changed the developing environment of TVEs, a large-scale restructuring has been promoted due to the intensification of competition in the market. Through ownership reform, great achievements were made in the development of TVEs. Along with the reform and development of TVEs, however, its titles, concepts, and forms of ownership have also been changed, which caused confusion in ideological understanding.Nowadays, the understanding of TVEs' status, role and Development prospect is so vague that some people maintain that TVEs has accomplished the historical undertakings and are due to retire; some believe that the economic terminology named TVEs has no longer existed; some others, however, argue that TVEs should be renamed into small and medium-sized enterprises or private enterprises. These are indeed misconceptions ascribed to the inadequate understanding of TVEs. As a result, it is necessary to draw the awareness of people in the perspectives of TVEs' concepts and the importance of its roles. One of the purposes of this study is to deal with the above mentioned issues.Though, a lot of current researches on China's TVEs are carried out, its concepts, economic significance, its research on social significance and future development are still inadequate.TVEs are a unique phenomenon in China's economic system transformation and development. As a comprehensive concept, TVEs differ significantly from other enterprises in general sense. Common enterprises are usually established for profits, while serving the fundamental aim. TVEs is by no means an exception. In addition to its economic function, however, TVEs shoulder indispensable social responsibility. It is not only the essential component of the state's economy, but also an important assurance of social stability in the nation's development. It is necessary to cultivate the TVEs. This study is therefore designed to study the concept of TVEs and the transition of its ownership, which help further the understanding of TVEs' economic and social significance.China is unique for its current stage of development. As a large agricultural country, China has an 80% rural population, which means the development in rural areas and the raise of farmers' incomes should always top the state's concerns. TVEs plays an important role in consuming rural labor surplus, raising farmers' income, narrowing the gap between rural areas and cities, and boosting the modernization and industrialization in the above-mentioned regions. There is now an abundant labor surplus in China's rural areas, and cities will face great pressure if the influx of rural population comes into them, which may bring about a series of social problems. Cities can be further paralyzed if the rural population over concentrates in its influx into urban areas. In this regard, the study of TVEs is significant as well.To solve problems at the present stage in China's rural areas and social problems, it remains an effective (perhaps the only) means to vigorously support the development of TVEs. And the development of TVEs should not be ignored as the Three Rural Issues (village, farmer, and agriculture) remain unsettled.Despite the stability of TVEs in its current development, many problems such as structural contradictions, inappropriate investments, regional imbalance of development, tough export situation, relatively low quality and creativity of the employees, difficulties in recruitment, tension of production elements, shortage of funds and frequent natural disasters are still hampering its development. Besides, along with the deepening of China's marketization and globalization, TVEs is facing more challenges and problems, such as intensified competition among enterprises , increased international trade friction, the appreciation of Renminbi, and natural calamities. All these have become the obstacles in the way of TVEs' development, and these are not to be neglected.In this regard, this study will suggest the existing problems by analyzing the status of TVEs in its operation, and consider the solutions and countermeasures to these problems.