Poverty reduction is now the major issue for Chinese government to focus on and whose success, or otherwise, will directly affect the achievement of ‘Moderately Prosperous Society’. The Minimum Livelihood Guarantee Scheme (MLGS), also known as ‘Dibao’ is a national means-tested program to provide cash transfers to the poor based on a locally set minimum income level. Dibao program has been operated in Fugong District for ten years, the achievement is obvious. Moreover, for reducing the poverty, the local government also applied the supportive policies based on local agriculture conditions, also trying to promote the Pro-poor tourism within its district. This paper mainly focuses on the poverty policy, trying to describe the rural poverty reduction policy implementation in Fugong district, explore related policy recommendations based on ‘production of space’ theory. The findings of this paper indicated the success of rural poverty reduction policy in China, the main purpose of ‘Dibao’ program is to offer the money transit to its holder, and then achieve the poverty reduction goal. Moreover, some local policy recommendations for the future poverty reduction are also mentioned, such as pro-poor tourism. For the better anti-poverty policy, ‘production of space’ theory is applied to emphasis the local people’s idea should be take into consider to make the better poverty reduction in current place.