Farmers continue to constitute one of the most fundamental social issues in China. In fact, China's unique dual social structure provides the institutional foundation for the longstanding discrimination against farmers, and the key reason behind the widening gap between the urban and rural areas, and the rich and poor. It is also an immense obstac1e in China's modernisation process. This paper focuses on the causes and evolution of China's dual social structure, and discusses the profound influence of the Soviet model on China. By doing so, the author aims to expound the historical causes behind the discrimination against farmers in a contemporary society, and explore the fundamental reform of contemporary Chinese society.