Developing countries with small-scale agriculture have yet to exploit the untapped potential of agricultural mechanization. This is because of the misconception that mechanization is often seen as unworthy in small-scale agriculture. The purpose of this paper is to examine the development of agricultural mechanization in China and to provide evidence on how smallholder farmers can access agricultural machinery. A narrative approach was employed to conduct an in-depth analysis of the policies, strategies, and trends associated with agricultural mechanization development. The findings showed that: (1) the establishment and development of mechanization for smallholder agriculture is an evolutionary process that strongly opposes leapfrogging (technocratic behavior) and making large jumps; (2) the foundation of mechanization development should rely on a self-reliance system; (3) an appropriate mechanization theory is the key to inducing the rapid growth of mechanization in small-scale agriculture; (4) the successful application of agricultural machinery requires strong, target-oriented, and pro-farmer policies with effective leadership strategies. We present the key lessons on policy and institutional aspects for countries with small-scale agriculture and who are in the initial stages of agricultural mechanization.