Song Xiaomin and Wang Tingyou: Promoting Complementary Advantages and Common Development of Economies under Various Ownerships
The Third Plenary Session of the 20th CPC Central Committee proposed to "promote the complementary advantages and common development of economies under various forms of ownership." This is a major strategic deployment for upholding and improving our country’s basic socialist economic system, implementing the institutional mechanisms of the "Two Unwaveringlys" [1], and promoting the growth of economies under various forms of ownership. In further comprehensively deepening reform, we must profoundly understand the significance and advantages of promoting the complementary advantages and common development of various ownership economies, actively explore effective paths, and make greater contributions to the great cause of building a strong country and national rejuvenation by comprehensively advancing Chinese-path modernization.
I. The Significance of Promoting the Complementary Advantages and Common Development of Economies Under Various Forms of Ownership
Both the public sector and the non-public sector are important components of the socialist market economy and constitute an essential foundation for our country’s economic and social development. Promoting their complementary advantages and common development is a necessity for constructing a high-level socialist market economy system, building a modern economic system, and developing new quality productive forces.
The necessity of constructing a high-level socialist market economy system. Since the 18th CPC National Congress, China’s economic system reform has achieved breakthrough progress, and the socialist market economy system has been gradually improved. As the solid foundation of a high-level socialist market economy system, the common development of various ownership economies has powerfully supported the high-quality development of our economy. The scale of the state-owned economy has continued to expand, and the non-public sector has developed rapidly. The major strategic deployment for complementary advantages and common development profoundly reflects the essential requirements of a high-level socialist market economy system. It gives play to both the strengths of the market economy and the superiorities of the socialist system. It will continue to promote the improvement of a high-standard market system, the further refinement of the legal environment for the market economy, the optimization of a market environment of fair competition, and the enhancement of vitality and momentum for economic development, thereby driving the continuous improvement and development of our country's socialist market economy system.
The necessity of building a modern economic system. For a nation to be strong, its economic system must be strong. Building a modern economic system is a major strategic decision made by the Party Central Committee proceeding from the overall interests of the Party and State’s undertakings, with an eye toward achieving the "Two Centenary Goals" [2] and responding to the new requirements of socialism with Chinese characteristics entering the New Era. General Secretary Xi Jinping emphasized: "A modern economic system is an organic whole composed of the mutual relations and internal links between various links, levels, and fields of social and economic activities." A modern economic system cannot function without the powerful support of a refined property rights system and a modern corporate system. Various ownership economies jointly lay the foundation for our country's modern economic system. This requires us to better adhere to the "Two Unwaveringlys," properly handle the relationship between the public and non-public sectors, and encourage various economic components to actively throw themselves into the construction of a modern economic system. State-owned enterprises (SOEs) possess advantages such as strong capital reserves and technical strength, while private enterprises are characterized by flexible mechanisms and high market sensitivity. Through complementary advantages, SOEs and private enterprises are gradually constructing a new model of clear division of labor, effective interaction, deep cooperation, and high-efficiency synergy within the building of a modern economic system. Through collaborative innovation and resource sharing in the integration of industry, academia, research, and application, they will catalyze more new technologies, industries, models, and business forms in the future. This will drive economies of different ownership types to jointly create a powerful industrial innovation ecosystem chain, continuously strengthening our economic power and comprehensive national strength.
The necessity of developing new quality productive forces. As an important pillar and relying force for the Party’s governance and national rejuvenation, SOEs possess political and organizational advantages in terms of being the source of innovation, aggregating talent, industrial application, and forging national strategic scientific and technological strength. They serve as the backbone for cultivating and developing new quality productive forces and promoting high-quality development. General Secretary Xi Jinping emphasized that technological innovation is the core element for developing new quality productive forces, and that we must lead their development through technological innovation. Enterprises are the primary subjects of technological innovation. SOEs, especially those managed by the central government, are an important component of national strategic scientific and technological strength. Private enterprises are a vital force for technological innovation, as well as for technical popularization, application, and industrial upgrading. China's private enterprises account for over 90% of national high-tech enterprises, powerfully supporting the continuous improvement of innovation levels in the private economy. The complementary advantages and common development of various ownership economies will surely cause all sources of power conducive to the development of new quality productive forces to flow fully, creating new miracles in China’s economic development.
II. The Advantages of Promoting the Complementary Advantages and Common Development of Economies Under Various Forms of Ownership
Both the public and non-public sectors are important subjects of the national economy, each with its own advantages and characteristics, jointly contributing to our country's economic and social development. Promoting their complementary advantages and common development is conducive to pushing for new breakthroughs and achievements in the development of various ownership economies.
It is conducive to consolidating the dominant position of public ownership and giving play to the leading role of the state-owned economy. Our country is a socialist state, and public ownership is the essential feature of socialism. Under the conditions of the common development of multiple ownership economies in the primary stage of socialism, we must insist on public ownership occupying the dominant position; this is the fundamental guarantee for maintaining our socialist character. General Secretary Xi Jinping pointed out: "Our country's basic economic system is an important pillar of the system of socialism with Chinese characteristics and the foundation of the socialist market economy system. The dominant position of public ownership cannot be shaken, and the leading role of the state-owned economy cannot be shaken. This is the institutional guarantee for ensuring that the people of all ethnic groups in our country share the fruits of development, and it is also an important guarantee for consolidating the Party's governing status and adhering to our country's socialist system." As the main form of the public sector, the state-owned economy controls the lifeblood of the national economy and plays a leading role in economic development. Promoting complementary advantages and common development is conducive to further consolidating the dominant position of public ownership and better giving play to the strategic supporting role of the state-owned economy in the construction of Chinese-path modernization.
It is conducive to stimulating the vitality and creativity of the non-public sector, promoting the growth of the non-public economy, and better giving play to its role in stabilizing growth, promoting innovation, increasing employment, and improving people's livelihoods. General Secretary Xi Jinping noted: "In the New Era and on the new journey, the development prospects for the private economy are broad and much can be achieved; it is the right time for the vast number of private enterprises and entrepreneurs to show their prowess." As an important part of the non-public sector, the private economy is a fresh force [3] in advancing Chinese-path modernization, an important foundation for high-quality development, and a vital force for promoting the comprehensive building of a great modern socialist country and achieving the Second Centenary Goal. Since the establishment of the socialist market economy system, the non-public sector has demonstrated greater capacity in promoting growth, driving innovation, creating jobs, and engaging in international competition.
It is conducive to promoting the continuous improvement of the modern corporate system with Chinese characteristics. Through years of in-depth reform, our country's ownership structure has been gradually adjusted, the effective forms of realizing the basic economic system have become clearer, and a set of corporate governance systems has been formed that both follows the universal laws of the modern corporate system and highlights the advantages of the system of socialism with Chinese characteristics. This system ensures that the Party’s major principles and policies are effectively implemented in SOEs, and that the rights of ownership and distribution in the public sector are always owned, used, and enjoyed by the broad masses of the people. Private enterprises have responded actively to the calls of the Party and State, gradually improving their corporate governance structures and management systems, standardizing business behavior, strengthening internal supervision, actively participating in Government and Social Capital Cooperation (PPP) projects, and throwing themselves into rural revitalization, green development, and social charity. They have made important contributions to the continuous and healthy development of our economy and society and to meeting the people's ever-growing needs for a better life.
III. Actively Exploring Effective Paths to Promote Complementary Advantages and Common Development of Economies Under Various Forms of Ownership
Since the 18th CPC National Congress, the state-owned economy and the private economy have deepened their cooperation, supplemented each other's strengths, and promoted one another, achieving good results. At the same time, the institutional mechanisms for promoting complementary advantages and common development still require exploration and refinement.
Guide the whole of society toward a correct and comprehensive understanding of promoting complementary advantages and common development. For many years, on the issue of the relationship between the state-owned and private economies, there have often been lingering erroneous statements such as "the state advances while the private sector retreats" [4], the "theory of state-owned enterprise monopoly," and the "theory of the private economy leaving the field." These statements question the basic socialist economic system and negate or weaken either the public or non-public sectors. We must resolutely resist and clearly refute these views. We must profoundly recognize that the public and non-public sectors are not mutually exclusive or neutralizing, but rather complementary and mutually reinforcing. General Secretary Xi Jinping emphasized: "Consolidating and developing the public sector is not antithetical to encouraging, supporting, and guiding the development of the non-public sector; they are organically unified," and "To raise economic and social development, all parties must work together with one heart; when everyone adds fuel, the flames rise high" [5]. General Secretary Xi Jinping’s important expositions provide the fundamental guidelines for promoting the common development of various ownership economies. We must guide society to correctly and comprehensively understand the status and role of the state-owned economy and unwaveringly consolidate and develop the public sector. We must also correctly and comprehensively recognize the contribution and role of the private economy and unwaveringly encourage, support, and guide the development of the non-public sector.
Optimize the policy and institutional environment for complementary advantages and common development. Economies of various ownership types are the main participants in our country's economic activities, the main providers of employment opportunities, and important promoters of technological progress. Their complementary advantages and common development cannot occur without the guarantee of a good policy and institutional environment. Creating such an environment is of great significance for stimulating the vitality of market entities. First, we must deepen SOE reform, focusing on improving the modern corporate system with Chinese characteristics and perfecting market-oriented operating mechanisms to further stimulate the endogenous motivation of SOEs and allow them to play their role as the "main pillars" [6] of the socialist economy with Chinese characteristics. Second, we must apply precise force in improving governance structures and management systems, refining financing support policies, and comprehensively implementing fair competition policies to further improve the quality and vitality of the private economy's development. By optimizing the policy and institutional environment, we can effectively transform our country’s political and institutional advantages into high-quality development efficacy.
Strengthen the synergistic cooperation of various ownership economies in an all-around way. First, we must deepen the reform of state-owned capital and SOEs, enhance their core functions, and increase their core competitiveness. We must accelerate the formation of relations of production that are better adapted to new quality productive forces, and continuously promote state-owned capital and SOEs to become stronger, better, and larger, ensuring they maintain and increase their value while strengthening their strategic supporting role. Second, we must further accelerate the development of private enterprises, supporting capable private enterprises to take the lead in undertaking major national technical bottleneck tasks and further opening national major scientific research infrastructure to private enterprises. Third, we must strengthen synergistic cooperation. We should support enterprises of all ownership types to establish long-term, stable cooperative relationships around industrial, supply, value, and innovation chains. We should establish mechanisms for supply-demand matching, joint project construction, and result sharing. In the process of constructing a modern industrial system, developing new quality productive forces, and stimulating the vitality of various market entities, we can realize mutual promotion and common development.