Even in ancient times, large-scale grain-producing farms could only survive by relying on a large-scale agricultural product market, and such a large-scale agricultural product market meant that there were cities with a considerable population. Because there was only one small-scale peasant economy in Chinese history, there has never been an agricultural model of scale production like a farm. 
The definition of a key concept in the argument is inconsistent.
 the ancient Chinese cities discovered by archaeology are probably not densely populated cities, but just for holding some kind of Temporary gathering place for the ceremony crowd.