In the past, poverty reduction mainly relied on state financial input.However, as the amount of investment goes up every year, the speed of poverty reduction is slowing down. In the 1980s China’s poverty-stricken population was cut by 11.5 million people per year. This number was reduced to 6.19 million in the 1990s. At this stage, as it is significantly harder to reduce the poverty population, economic growth and general financial input on poverty alleviation become less efficient. Witnessing the continuous decline in the traditional input’s marginal utility, China is considering new mechanisms to support poverty alleviation.