Jiang Chuanhai: Economic System Reform as the Driving Force for Further Comprehensively Deepening Reform
The Third Plenary Session of the 20th CPC Central Committee mapped out a grand blueprint for further comprehensively deepening reform to advance Chinese-path modernization. It emphasized the importance of exerting the leading role of economic structural reform, asserting that deepening economic structural reform remains the focus of further comprehensively deepening reform. The primary tasks are to improve the systems and mechanisms conducive to promoting high-quality development, to shape new drivers and advantages for development, to uphold and implement the "two unswervinglys" [1], to build a unified national market, and to refine the foundational institutions of the market economy. In his speech at the opening of a study session for provincial and ministerial-level leading officials on implementing the guiding principles of the third plenum, General Secretary Xi Jinping emphasized the need to highlight the focus on economic structural reform and to advance reforms in all aspects in a comprehensive and coordinated manner. We must take economic structural reform as the lead, coordinate the deployment of economic reform with reforms in all other fields, and push for the continuous deepening of comprehensive reform to provide powerful momentum and institutional guarantees for Chinese-path modernization.
I. Profoundly understanding the great significance of taking economic structural reform as the lead
General Secretary Xi Jinping pointed out that we must focus on exerting the leading role of economic structural reform, and that deepening economic structural reform remains the priority for further comprehensively deepening reform. This fully reflects our Party’s profound understanding of the laws of socialist construction, as well as its scientific evaluation and grasp of the relationships between the relations of production and the productive forces, the superstructure and the economic base, and national governance and social development.
This is an inherent requirement for comprehensively deepening reform. The economic base determines the superstructure. Economic structural reform has a significant impact and transmission effect on reforms in other areas; the progress of major economic reforms determines the pace of many other reforms, serving as the "critical link where pulling one hair moves the whole body" [2] within the reform blueprint. By grasping the "ox's nose" [3] (the core) of economic structural reform, we can effectively promote the resolution of deep-seated contradictions in other fields and create the conditions and momentum for comprehensively deepening reform. In the process of constructing Chinese-path modernization, adhering to economic construction as the center necessarily requires taking economic structural reform as the focus and lead. This drives the relations of production and productive forces, the superstructure and the economic base, and national governance and social development into better alignment, further liberating and developing social productive forces while stimulating and enhancing social vitality. To seize new opportunities, respond to new challenges, promote high-quality development, and better adapt to the changes in the principal contradiction in Chinese society [4], there is an urgent need to further deepen economic structural reform and better exert its leading role. We must firmly grasp the priority task of economic structural reform and coordinately advance reforms in other fields to ensure that reforms in all areas are mutually reinforcing and supporting.
This is an inevitable requirement for promoting high-quality development. Since the beginning of reform and opening up, our Party has consistently adhered to economic construction as the center and firmly grasped economic structural reform as the focus. We have focused on breaking down institutional and mechanistic obstacles that restrict the development of productive forces, fully stimulating the vitality of the entire society, and creating the "two miracles" of rapid economic development and long-term social stability, which in turn created favorable conditions for the orderly and coordinated advancement of reforms in other fields. Entering the New Era, the principal contradiction in society has changed, and the economy has shifted from a stage of high-speed growth to a stage of high-quality development. Compared with the requirements of this new situation, China's market system remains incomplete, market development is insufficient, and the relationship between the government and the market has not been fully rationalized. Issues such as the impeded flow of factors of production, low efficiency in resource allocation, and weak microeconomic vitality persist. Promoting high-quality development still faces many institutional and mechanistic obstacles. Only by firmly grasping the "ox's nose" of economic structural reform and accelerating the construction of a high-level socialist market economy can we solidly promote high-quality development and continue to provide powerful momentum for consolidating and developing the "two miracles."
This is an inevitable requirement for promoting the modernization of the national governance system and governance capacity. Since the Third Plenary Session of the 11th CPC Central Committee, China's reforms began in the economic field and gradually extended to other areas. The Party has united and led the people of all ethnic groups to continuously deepen reform around the economic system, achieving the historic transformation from a highly centralized planned economy to a socialist market economy and establishing the basic socialist economic system. Simultaneously, fruitful results have been achieved in political, cultural, social, and ecological construction, as well as in Party building. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has highlighted institutional construction as the main thread, perfecting various systems through comprehensively deepening reform. This has caused the system of socialism with Chinese characteristics to become more mature and finalized, significantly raising the level of modernization of the national governance system and governance capacity. However, perfecting and developing the system of socialism with Chinese characteristics and promoting the modernization of national governance is a dynamic historical process that must continuously advance to higher levels along with the development of practice. In particular, our socialist market economy is not yet perfect, some reform measures have not been completed, and the governance system and capacity are not yet fully adapted to economic and social development. Therefore, we must place greater emphasis on the leading role of economic structural reform, further comprehensively deepen reform, build a high-level socialist market economy, continue to refine systems and mechanisms in all fields, and continuously improve national governance efficiency, thereby showcasing the advantages of the system of socialism with Chinese characteristics in the historical process of modernization.
II. Comprehensively grasping the inherent requirements of taking economic structural reform as the lead
General Secretary Xi Jinping emphasized the need to "adhere to economic structural reform as the main axis, and strive to achieve new breakthroughs in reforms of important fields and key links, using this to lead and drive reforms in other fields so that reforms in all aspects proceed coordinately and form a synergy." This strategic arrangement highlights the important position of economic structural reform within the landscape of comprehensively deepening reform. To further comprehensively deepen reform, we must grasp the inherent requirements of taking economic structural reform as the lead.
Adhere to the balance of "liberalizing to foster vitality" while "regulating effectively." The core issue of economic structural reform is handling the relationship between the government and the market. General Secretary Xi Jinping emphasized: "On the issue of the role of the market and the government, we must apply dialectics and the 'two-point theory.' Both the 'invisible hand' and the 'visible hand' must be used well, striving to form a pattern where market roles and government roles are organically unified, mutually supplementary, mutually coordinated, and mutually reinforcing, so as to promote sustained and healthy economic and social development." Achieving the goal of being both "liberalized with vitality" and "regulated effectively" is an inherent requirement for correctly handling the government-market relationship in a high-level socialist market economy; it is also a profound understanding of the dialectical unity between economic development vitality and order. Since the 14th CPC National Congress, we have continuously advanced the reform of the socialist market economy system, conducting theoretical innovation based on practical exploration around the core issue of the government-market relationship. Giving full play to the decisive role of the market in resource allocation can effectively stimulate the vitality of various economic entities and promote the efficient allocation of resources and a significant improvement in innovation capabilities. Better exerting the role of the government in macro-control, market regulation, and social governance is conducive to maintaining economic stability and social fairness and justice. The two complement each other, bring out the best in each other, and promote one another, allowing the "effective market" and "competent government" to be better combined.
Adhere to both focused advancement and systematic planning. General Secretary Xi Jinping pointed out: "Reform must pay more attention to systematic integration, adhering to global vision and systematic thinking in planning and advancement." Since reform and opening up, our Party has centered on the economic system to continuously achieve new breakthroughs in重要 fields and key links, thereby leading reforms in other fields. Taking economic structural reform as the focus to drive reforms in other systemic areas is a successful practice tested by time. Adhering to systematic thinking and correctly handling the relationship between overall coordination and breakthroughs in key areas is both a valuable experience accumulated by our Party over the long term and a methodological guide for further promoting economic reform. We must stick to economic structural reform as the main axis, continue to achieve breakthroughs in key links, and simultaneously pay more attention to balancing overall concerns by strengthening holistic design and systematic advancement to provide methodological support for Chinese-path modernization.
Adhere to both "establishing" and "breaking." In his speech at the study session for provincial and ministerial-level officials, General Secretary Xi Jinping noted that we must adhere to the dialectical unity of "breaking" (破, pò) and "establishing" (立, lì), emphasizing both simultaneously while "establishing before breaking." What should be established must be actively established; what should be broken must be broken in a timely manner on the basis of what has been established, achieving a "steady and swift" [5] pace of reform within the unity of breaking and establishing. Since reform and opening up, our Party has deeply promoted economic structural reform and achieved world-renowned development achievements. The principle of "establishing before breaking" and "simultaneous breaking and establishing" has been fully reflected in the process of economic reform, providing direction. Further comprehensively deepening reform is a complex systematic project regarding "establishing" and "breaking." This requires us to accurately grasp the requirements of the times, actively promote practical innovation, build a complete modern institutional system and key institutional arrangements, and consolidate the institutional foundation of economic reform. By handling the dialectical relationship of "breaking" and "establishing," we inject continuous momentum into the realization of Chinese-path modernization.
Adhere to both basing ourselves on national conditions and absorbing the fine achievements of civilization. General Secretary Xi Jinping emphasized that we should be adept at learning from and absorbing all the fine achievements of human civilization and deeply study the practical issues of advancing Chinese-path modernization. Economic structural reform has never been a matter of closing our doors; rather, it has always unfolded on the basis of adhering to opening up and actively integrating into the global economic system. With an open mind, learning from successful international reform models and management experiences—especially those advanced concepts and institutional arrangements that fit the laws of the socialist market economy—helps shape external driving forces for economic development. Under the premise of maintaining national sovereignty and economic security, we must actively participate in international economic cooperation and competition and promote trade and investment facilitation. By grounding ourselves in national conditions while absorbing the best of the world, we will continue to deepen economic structural reform and comprehensively deepen reform in the process of promoting high-quality development.
III. Unswervingly advancing the comprehensive deepening of economic structural reform
Focusing on the leading role of economic structural reform fully demonstrates our Party's profound grasp of the laws of reform and its forward-looking thinking on the process of Chinese-path modernization. We must be good executors, men of action, and doers in further comprehensively deepening reform, ensuring the implementation of various economic reform tasks, and solidly promoting economic reform to open new horizons and reach new heights.
Improve systems and mechanisms for promoting high-quality economic development. Fully exert the leading role of economic structural reform, taking high-quality development as the primary task and guiding reform with the New Development Philosophy. First, build an institutional environment conducive to technological progress and industrial upgrading to stimulate the innovation vitality and creative potential of the entire society. This includes not only perfecting intellectual property protection and innovation incentive systems but also promoting collaborative innovation between industry, academia, and research, and cultivating innovative enterprises and industrial clusters with international competitiveness. Second, "coordinated development" requires balancing development differences between regions, urban and rural areas, and industries, coordinating the development of the eastern, central, and western regions, optimizing regional economic structures, and promoting resonance across fields and rational resource allocation. Third, "green development" emphasizes the importance of ecological civilization; environmental protection and resource conservation should be integrated into all aspects of economic and social development to promote the construction of a resource-saving and environment-friendly society. Fourth, "open development" requires improving the level of opening up, participating in global economic governance, and building a new system for a higher-level open economy. Finally, "shared development" aims to achieve social fairness and justice; we must improve the income distribution system and the quality of public services so that the fruits of reform and development are shared by all people.
Shape new drivers and advantages for development. To adapt to the trends of the new round of technological revolution and industrial transformation, accelerate the improvement of productive forces, and solidly promote high-quality development, we must develop new quality productive forces according to local conditions. We must promote revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading, continuously giving birth to new industries, new models, and new momentum. We should strive to build relations of production compatible with new quality productive forces, improve systems for the optimization and upgrading of traditional industries, and guide enterprises to transform traditional industries with digital, intelligent, and green technologies. We must drive the iterative upgrading of productive forces through scientific and technological innovation, strengthen high-level technological self-reliance, promote the ecological development of strategic industrial clusters, and refine the policy system for strategic industries. We should further promote the deep integration of the physical economy and the digital economy, empower various industries with AI, and strive to create digital industrial clusters with international competitiveness. We must map out "new tracks" for future industries, establish investment mechanisms for them, and reform the way production factors are allocated to promote the concentration of advanced factors toward the development of new quality productive forces.
Uphold and implement... [text cuts off]
The "Two Unswervinglys" [6]. General Secretary Xi Jinping has emphasized that we must unswervingly consolidate and develop the public sector of the economy, and unswervingly encourage, support, and guide the development of the non-public sector. Adhering to and implementing the “Two Unswervinglys” is not only an inherent requirement for constructing a high-level socialist market economy system but also an important guarantee for promoting high-quality development. On one hand, we must consolidate the dominant position of the public sector, deepen the reform of state-owned enterprises (SOEs), and enhance their competitiveness and innovation capacity. On the other hand, we must encourage, support, and guide the development of the non-public sector, create a market environment of fair competition, protect the legal rights and interests of private enterprises, and stimulate the vitality of all types of business entities. At the same time, we must ensure that various forms of ownership are legally entitled to equal use of productive factors, fair participation in market competition, and equal protection under the law. This institutional arrangement helps to give full play to the advantages of various ownership systems, promoting the optimal allocation of resources and the continuous, healthy development of the economy. We must persist in and implement the “Two Unswervinglys,” giving full play to the role of market mechanisms to promote new progress in China’s high-quality development.
Building a national unified large market. Constructing a national unified large market aims to eliminate regional market barriers and institutional obstacles, promoting the free flow and efficient allocation of productive factors such as goods, services, capital, technology, and labor. This not only helps break down local protectionism and market fragmentation, reducing resource waste and redundant construction, but also enhances market efficiency, stimulates market vitality, and effectively promotes economic structural optimization and industrial upgrading. We must continuously improve market rules and laws, establishing a fair, just, and transparent market environment to ensure that all types of business entities participate in competition on equal footing. At the same time, building a national unified large market requires deepening the reform of market-based allocation of productive factors, improving the property rights protection system, and strengthening the protection of intellectual property rights to incentivize innovation and entrepreneurship.
Improving the foundational systems of the market economy. Strengthening the property rights protection system is the cornerstone of improving the foundations of the market economy. Legally protecting the property rights of various ownership systems equally and over the long term helps boost investment confidence, stimulate innovation vitality, and promote technological progress and industrial upgrading. We must improve the market access system, lowering market entry thresholds and creating a fair and transparent market environment so that all types of business entities can participate in market competition equally. We must refine the fair competition system, strengthening enforcement against monopolies and unfair competition, maintaining market order, and safeguarding the legal rights and interests of market participants. We must also improve the construction of the social credit system, advancing the sharing and application of credit information, establishing and refining mechanisms for punishing dishonesty [7], and raising the level of integrity throughout society to provide a fundamental guarantee for the healthy operation of the market economy.
Web Editor: Bao Luo Source: Red Flag Manuscript (Hóngqí Wéngǎo) [8] 2024, Issue No. 21