The relationship between the moderate-scale management and the small peasants should be well handled during the process of rural revitalization in China. Firstly,the paper has identified the definition and explanation of some important economics concepts,including the return to scale,economy of scale,and small-peasant economy etc. to clarify some misunderstandings of traditional thoughts. Secondly,the paper tries to illustrate that,the long-standing proplems of small-scale farming system of Chinese agriculture is the natural results of the inherent shortage of resources and the imbalance of the proportion of people and land rather than the results of Household Responsibility System (HRS). Last but not least,as the most suitable institution or organization for agricultural production,the management of household operation should be continued and insisted,but there must be some additional institutional arrangements to compensate the inborn shortages of small-scale peasant economy to meet the demands of market-oriented economy,i.e. the modern socialized service system for agriculture. The establishment and improvement of diversified,multi-level and socialized service system for small farmers,and the acquisition of external scale economy through the horizontal alliance between small farmers can realize the organic connection between small farmers and modern agricultural development,and consolidate the foundation for the implementation of Rural Revitalization Strategy.