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The Targeted Poverty Alleviation (TPA) policy is a pivotal initiative by the Communist Party of China (CPC) aimed at realizing the overarching goal of establishing a moderately prosperous society in all respects during the new era. Spearheaded by the CPC as the central leadership force, this policy has guided the formulation of a comprehensive strategic framework at the national level, including the development of poverty identification criteria, establishment of operational procedures, and provision of robust financial and policy support. Local governments, aligned with central directives, have crafted detailed implementation plans, mobilized various societal sectors, and efficiently integrated resources to ensure precise execution of the TPA policy, which has taken root in rural areas. Through a combination of structural measures, including coordinated policy initiatives, strategic fund allocation, and rigorous monitoring and evaluation systems, the central and local governments have collectively facilitated the successful implementation of the TPA policy, culminating in the achievement of eradicating absolute poverty in China. This success has contributed valuable insights to the global discourse on poverty alleviation. This study employs the "Rural Multidimensional Poverty Index" (R-MPI), introduced by the FAO in 2022, to construct a multidimensional relative poverty index, assessing changes in rural multidimensional poverty in China. Using data from four waves of large-scale household surveys (2012, 2014, 2018, and 2020) conducted by Chinese government agencies, we apply advanced econometric methods such as Ordinary Least Squares (OLS), Propensity Score Matching (PSM), and Difference-in-Differences (DID) to analyze the impact of the TPA policy on rural households' multidimensional poverty alleviation. The results indicate a significant reduction in the rural multidimensional poverty index over the study period, with the TPA policy notably improving poverty dimensions related to education, living standards, and income. However, its impact has been less pronounced in areas such as food security, nutrition, rural livelihoods, and access to resources. These findings underscore the success of the TPA strategy in reducing multidimensional poverty, while also highlighting areas requiring further intervention. Moreover, regional disparities in the effectiveness of poverty alleviation efforts are evident, with the western regions achieving significantly stronger outcomes compared to the eastern and central regions. This suggests that variations in infrastructure, resource availability, and local governance play a crucial role in determining the success of poverty alleviation initiatives. Beyond the empirical analysis, the study explores the political and social dynamics underpinning the TPA strategy. It examines the political motivations driving the policy, such as the government's focus on national stability and social cohesion, and the active participation of local governments and civil society in policy implementation. These dynamics are essential for understanding the broader societal transformations catalyzed by the TPA policy. The strategy demonstrates how state-led initiatives can promote social integration through mechanisms like resource allocation, public service delivery, and social security, ultimately enhancing the living standards and economic well-being of marginalized populations. This study provides key lessons for other developing countries addressing poverty, offering an in-depth understanding of the political, social, and economic processes that shape poverty alleviation efforts.