On August 17, 1958 (the third day of the seventh lunar month), the Central Committee passed the Resolution on the Establishment of People's Communes in Rural Areas.

On August 17, 1958, the enlarged meeting of the Political Bureau of the CPC Central Committee was held in Beidaihe. The 30th ends. The meeting discussed national economic planning, industrial production, agricultural production, rural work, commercial work, education policies and other issues. After the meeting, in order to double steel output from 1957 to 10.7 million tons, tens of millions of people across the country joined forces, and local laws and foreign laws were launched at the same time, setting off an unprecedented scale "national steel campaign". The meeting adopted the "Resolution on Establishing People's Communes in Rural Areas" and decided to generally upgrade high-level agricultural production cooperatives that had been established recently in various places to large-scale people's communes integrating government and society. From August to October, 740,000 agricultural production cooperatives across the country were merged into more than 26000 people's communes, and rural areas across the country were basically transformed into people's communes.