Abstract, The track records of both ,poverty reduction and polarization in China have raised growing ,concern over transit of the ,public sector. From a standpoint of grassroots development, the author intends to analyse how ,the roles of public ,sector could be well ,fitted into a modernization system, not only into a market-driven system. This paper includes four parts. First part, a brief review of the performance ofthe Chinese public sector for poverty reduction, which presents a