If China’s rural people are to participate fully in prosperous society and shares all the revenue in the future economic growth there must be a large labour shift from agricultural sector to non-agricultural ones. New non-agricultural jobs need to be created continuously and human capital needs to be accumulated correspondingly. Due to China’s household registration system and available jobs in cities, it is unlikely that most rural people migrate into cities, and it is neither possible for rural labour to get education and training in cities, leaving aside the educational opportunities there. CHIP 2002 data presents income and education inequality between rural and urban, the inequality is larger in less non-agriculture-developed areas. An alternative is proposed, namely to initiate continuing vocational education and training in each county or small city. Rural people could then accumulate their human capital via continuing vocational education and training in order to cater for skills demand for local non-agricultural sectors employment. The advantage of this alternative is that it requires far less capital through “intra-sector migration” than through “territorial migration”. Territorial migration would imply a huge number of rural labour to migrate with their families to cities.