Shi Yulong: Better Leverage the Role of Economic System Reform in Driving High-Quality Development
Reform and opening up is the driving force behind our country’s economic and social development. Since the 18th Party Congress, General Secretary Xi Jinping has personally led, planned, and advanced the work of comprehensively deepening reform. With a profound grasp of the laws governing reform and by applying the stand, viewpoint, and method of Marxism, he has creatively proposed a series of new ideas, viewpoints, and judgments regarding comprehensively deepening reform, many of which are included in the first volume of Selected Economic Works of Xi Jinping. For example, "Explanations on the 'Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reform'" points out: "Faced with new situations and tasks, we must, through comprehensively deepening reform, focus on resolving a series of prominent contradictions and problems facing our country’s development, and continuously promote the self-improvement and development of the system of socialism with Chinese characteristics." "The General Principle of Seeking Progress While Maintaining Stability is the Methodology for Doing Economic Work Well" points out: "We must actively promote comprehensively deepening reform, persist in a problem-oriented approach, have the courage to make breakthroughs and innovations, and use reform to promote development, the transformation of methods and adjustment of structures, and the improvement of people's livelihoods." "Several Major Theoretical and Practical Issues in Further Comprehensively Deepening Reform" points out: "Reform is a process of breaking the old and establishing the new; breaking is the means, and establishing is the end." These important expositions by General Secretary Xi Jinping provide the fundamental guidance for further comprehensively deepening reform on the new journey in the New Era.
The Fourth Plenary Session of the 20th Central Committee of the CPC [1] made a top-level design and strategic blueprint for economic and social development during the "15th Five-Year Plan" period (2026–2030). The "Recommendations" of the Fourth Plenary Session of the 20th CPC Central Committee proposed important principles that must be followed for economic and social development during the "15th Five-Year Plan" period, including "persisting in comprehensively deepening reform," and requiring a "focus on institutional and archival obstacles restricting high-quality development to promote deep-level reform." It made systemic deployments for "accelerating the construction of a high-level socialist market economy system and enhancing the momentum for high-quality development," proposing to "better exert the leading role of economic structural reform, improve the macro-economic governance system, and ensure that high-quality development remains steady and reaches far." At the second plenary meeting of the Fourth Plenary Session of the 20th CPC Central Committee, General Secretary Xi Jinping clearly required: "Further comprehensively deepen reform, focus on breaking down institutional obstacles that restrict high-quality development, and strive to achieve new breakthroughs in key areas and crucial links." To implement the spirit of General Secretary Xi Jinping’s important speeches and the decision-making deployments of the Party Central Committee, we must profoundly understand and accurately grasp the rich connotation and great significance of economic structural reform, better exert its leading role, and provide strong momentum and institutional guarantees for comprehensively advancing Chinese-path modernization with high-quality development.
Using economic structural reform as the lead to drive reform can increase momentum and activate vitality for development
In "Deeply Study and Comprehend the Spirit of the Third Plenary Session of the 20th CPC Central Committee," General Secretary Xi Jinping pointed out: "Planning and promoting reform around the Party’s central tasks is an important experience for the success of reform." In "Explanations on the 'Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Advancing Chinese-path Modernization,'" he pointed out: "Focus on exerting the leading role of economic structural reform." These important expositions profoundly reveal the major role and significance of reform for development, containing profound theoretical, historical, and practical logic. They provide scientific guidance for us to better exert the leading role of economic structural reform during the "15th Five-Year Plan" period and to focus on resolving the institutional obstacles that restrict high-quality development to promote deep-level reform.
From the perspective of theoretical logic, using economic structural reform as the lead to drive reform reveals the deep relationship between reform and development through the Marxist worldview and methodology. That the productive forces determine the relations of production and the economic base determines the superstructure, while the relations of production react upon the productive forces and the superstructure reacts upon the economic base, is a fundamental viewpoint of Marxism. It also reveals the internal connection and dialectical relationship between reform and development. Reform is the adjustment and optimization of the relations of production and the superstructure according to the needs of the development of productive forces, thereby liberating and developing social productive forces and stimulating and enhancing social vitality. Profoundly grasping the internal connection and dialectical relationship between reform and development is an important experience of our Party in leading reform and development to achieve great successes. Using further comprehensively deepening reform to drive economic and social development during the "15th Five-Year Plan" period involves a broad range of fields. We cannot proceed without distinguishing between the primary and the secondary; rather, we should closely revolve around the principal contradiction [2] and central tasks, giving priority to resolving the principal contradiction and the principal aspect of the contradiction to drive the resolution of other contradictions. Economic work is the central task of the Party and the state, and economic structural reform has an important conductive effect on reforms in other areas. In further comprehensively deepening reform, reforms in many fields require the leading drive of economic structural reform to proceed more smoothly, and the progress of institutional reforms in many aspects depends on the progress of economic structural reform. This pioneering and foundational role of economic structural reform determines that it has the important influence of "pulling one hair and moving the whole body" [3]. Only by firmly grasping this "ox's nose" [4] and integrating the promotion of economic and social development themed on high-quality development with the lead of economic structural reform can we better exert the important role of reform and drive a leap in the overall level of economic and social development through breakthroughs in key areas.
From the perspective of historical experience, using economic structural reform as the lead to continuously form and develop institutional mechanisms that conform to contemporary Chinese reality and are full of vitality is a precious experience of the success of our country’s reform and opening up. From the 14th Party Congress clearly proposing the reform goal of establishing a socialist market economy system, to the Third Plenary Session of the 18th CPC Central Committee clearly stating that "economic structural reform is the focus of comprehensively deepening reform, and the core issue is handling the relationship between the government and the market," to the Fourth Plenary Session of the 19th CPC Central Committee further clarifying "giving full play to the decisive role of the market in resource allocation and better exerting the role of the government," and finally to the Third Plenary Session of the 20th CPC Central Committee proposing "taking economic structural reform as the lead... focusing more on systemic integration, highlighting key points, and emphasizing the actual results of reform"—our Party has highlighted economic structural reform as the focus. This has led to the continuous deepening of reforms in various fields, provided a solid institutional guarantee for creating the "two miracles" [5], and pushed our country onto a new journey of comprehensively building a modern socialist country. Practice has proved that by firmly clutching the liberation and development of social productive forces to promote reform, we can provide a strong lead for all other aspects of reform. To promote economic and social development during the "15th Five-Year Plan" period through further comprehensively deepening reform, we must persist in and apply this experience well, focusing on using reform methods to solve development problems, taking economic structural reform as the lead, improving the macro-economic governance system, and enhancing the momentum and vitality of high-quality development to provide strong support for advancing and expanding Chinese-path modernization.
From the perspective of practical requirements, exerting the leading role of economic structural reform and promoting the landing and effectiveness of landmark reform measures are objective requirements for promoting high-quality development and better adapting to the changes in the principal social contradiction on the new journey. Entering the New Era, the principal social contradiction in our country has transformed [6], and the stage of economic development is also undergoing historical changes; contradictions and problems in development are concentrated in the quality of development. This requires us to pay more attention to and focus on improving the quality and efficiency of development. During the "14th Five-Year Plan" period (2021–2025), our Party unswervingly took economic structural reform as the lead to promote comprehensively deepening reform, further breaking deep-seated institutional obstacles and structural contradictions, providing new opportunities, expanding new space, and shaping new drivers for economic development. Our country's total economic volume has continuously crossed new thresholds, and the growth rate has remained among the top tier of major economies; the balance, coordination, and sustainability of development have been significantly enhanced. On the new journey, our country's reform has entered a "deep-water zone" and a "period of storming fortifications," while the problem of unbalanced and inadequate development remains prominent. To effectively solve these problems, we must "act in earnest" and "dare to tackle the hard issues." To promote economic and social development during the "15th Five-Year Plan" period through further comprehensively deepening reform, we must better exert the leading role of economic structural reform, further consolidate and expand advantages, break through bottleneck constraints, and strengthen weak links, while better coordinating the effective improvement of quality and the reasonable growth of quantity. Only in this way can we continuously strengthen our country's economic strength, technological strength, and comprehensive national strength, using the certainty of our own high-quality development to better respond to the uncertainties of changes in the external environment.
Grasping the key points, better exerting the leading role of economic structural reform, and providing institutional guarantees for the goal of achieving significant results in high-quality development during the "15th Five-Year Plan" period
In the "Explanations on the 'Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Advancing Chinese-path Modernization,'" General Secretary Xi Jinping pointed out: "Deepening economic structural reform remains the focus of further comprehensively deepening reform." In "Several Major Theoretical and Practical Issues in Further Comprehensively Deepening Reform," he pointed out: "The connotation of Chinese-path modernization is very rich, and further comprehensively deepening reform must also be all-round." The "Recommendations" of the Fourth Plenary Session of the 20th CPC Central Committee continue to identify the promotion of high-quality development as the theme of economic and social development during the "15th Five-Year Plan" period, requiring a persistence in taking economic construction as the center, and the complete, accurate, and comprehensive implementation of the new development philosophy to achieve the effective improvement of quality and the reasonable growth of quantity.
It should be seen that in promoting high-quality development during the "15th Five-Year Plan" period, we possess advantages but also face challenges. Regarding advantages, our country’s economic base is stable, its advantages are numerous, its resilience is strong, and its potential is great. The supporting conditions and basic trend of long-term improvement have not changed; the advantages of the system of socialism with Chinese characteristics, the ultra-large-scale market, the complete industrial system, and the abundant human resources have become more prominent. This provides a solid foundation for the goal of achieving significant results in high-quality development during the "15th Five-Year Plan" period. Regarding challenges, the problem of unbalanced and inadequate development in our country remains prominent. Simultaneously, downward pressure on the domestic economy has increased, and we face prominent contradictions of "strong supply and weak demand," bottlenecks in the domestic circulation, the arduous task of converting old kinetic energy into new ones, new issues posed by changes in population structure to economic development, and hidden risks in key areas. These are all reflections of the changes in the principal social contradiction; they are problems of development and transition, which must be resolved from an institutional level through reform. By persisting in combining a problem-oriented approach with a goal-oriented approach, and by both exerting the leading role of economic structural reform and advancing reforms in all aspects in a comprehensive and coordinated manner, we can gather the synergy to comprehensively advance Chinese-path modernization with high-quality development.
Centering on handling the relationship between the government and the market, we must accelerate the formation of an economic order that is both "dynamic when let go" and "well-managed." The role of the market and the role of the government are complementary, mutually reinforcing, and supplementary. To develop a socialist market economy, we must give play to both the role of the market and the role of the government. Building a high-level socialist market economy system requires a better combination of an effective market and a proactive government, and the accelerated formation of an economic order that is both "dynamic when let go" and "well-managed." It should be recognized that "letting go" (放 fàng) is for the purpose of breaking institutional obstacles that affect the development of productive forces, while "managing" (管 guǎn) requires building a socialist rule-of-law economy and credit economy to standardize market order. To this end, we must correctly handle the relationship between the government and the market, persist in and implement the "two unswervinglys" [7], and promote the complementary advantages and common development of various ownership economies. At the same time, we must accelerate the construction of a rule-of-law economy and credit economy, improve market rules, focus on correcting market failures, and standardize the order of competition, so that the unified national market becomes a grand stage for fair competition among all types of business entities.
Centering on the construction of a strong domestic market, we must strive to improve the quality and efficiency of the national economic cycle, helping to achieve internal and external connectivity and mutual promotion. A large-country economy has the unique advantage of internal demand as the mainstay and an internal cycle that can be self-sustained. Currently and for a period in the future, placing the foothold of development more on strengthening the domestic circulation and making internal demand the main driving force for economic development will help use the stability of the domestic cycle to hedge against the uncertainty of the international cycle. The "Recommendations" of the Fourth Plenary Session of the 20th CPC Central Committee proposed to "accelerate the improvement of the system and mechanism for the market-based allocation of factors" and made deployments. The Central Economic Work Conference held at the end of last year ranked "persisting in internal demand as the mainstay and building a strong domestic market" at the top of the key tasks for economic work this year. To implement this deployment, we must, in accordance with the basic requirements of "five unifications and one openness" [8], advance the construction of a unified national market in-depth, improve basic systems such as market access and fair competition, comprehensively rectify "inward-looking" (involutionary) competition, break down local protectionism and market segmentation, and smooth the domestic economic cycle. We must establish and improve a unified urban and rural market for construction land, a functional capital market, a smooth-flowing labor market, and a highly efficient technology market, promoting the efficient allocation of various resources and the full release of market potential.
Centered on improving the effectiveness of macroeconomic governance, we must accelerate the effort to ensure that macroeconomic policies act in the same direction and form a synergy. As the scale of China’s economy continues to expand and its structure is continuously optimized, the complexity of macroeconomic governance has risen significantly. Only by persisting in using systemic thinking, systemic methods, and systemic measures to optimize the allocation and combination of policy resources and tools can we release greater policy effectiveness. Both the "Recommendations" of the Third Plenary Session of the 20th CPC Central Committee and the Central Economic Work Conference [9] held at the end of last year proposed to "improve the effectiveness of macroeconomic governance." To this end, we must fully utilize and leverage China's developmental advantages, actively expand the space for macroeconomic policy, and enhance the high-efficiency coordination of the flows of people, logistics, capital, and information. We must revitalize existing stock, optimize incremental growth, and improve efficiency. We should innovate policy tools, styles, and methods; while delivering a "combination punch" of major strategies, major plans, major reforms, major policies, and major projects, we must also do a good job of communicating with micro-level entities and the general public. We should improve expectation management mechanisms to ensure that "where the market calls, the policy responds." We must leverage the integrated effects of existing and incremental policies, incorporating all types of economic and non-economic policies—as well as existing and incremental ones—into an assessment of macroeconomic policy orientation consistency, ensuring that various policies are interconnected and organically unified. Meanwhile, we must accelerate the building of a financial powerhouse, improve the central banking system, and construct a scientific and robust monetary policy system and a comprehensive macro-prudential management system. We should refine capital market functions that coordinate investment and financing to jointly promote the sustained and healthy development of the economy and society.
Centered on improving the systems and mechanisms for developing new quality productive forces according to local conditions, we must accelerate the shaping of new drivers and advantages for development. Developing new quality productive forces is an inherent requirement and the primary focus for promoting high-quality development. Whether we seek to achieve the goal of reaching the level of a moderately developed country in per capita GDP by 2035, or to gain the strategic initiative amid the accelerating evolution of the changes unseen in a century [10], we need to promote the accelerated development of new quality productive forces and continuously shape new drivers and advantages for development. The Central Economic Work Conference held at the end of last year proposed to "persist in innovation-driven development and step up the cultivation and expansion of new momentum." To this end, we must guide reform with the new development philosophy, resolutely break down the institutional and mechanistic defects that affect and restrict high-quality development, and improve the relations of production to better adapt to new quality productive forces, thereby facilitating the gathering of various advanced factors of production toward the development of these forces. We must clear the sticking points and bottlenecks that affect and restrict comprehensive innovation, and coordinate the integrated reform of systems and mechanisms for education, science and technology, and talent. Persisting in the directions of digitalization, green transition, and integration, we must strengthen the institutional supply for new fields and "new tracks," promote the deep integration of scientific and technological innovation with industrial innovation, optimize and upgrade traditional industries, cultivate and expand emerging and future industries, improve the systems and mechanisms for developing the service sector, and construct a modernized industrial system with advanced manufacturing as its backbone.
While highlighting the priority of economic system reform, we must also adapt to the new trends of the times, the new requirements of practice, and the new expectations of the people, comprehensively and coordinately advancing reforms in all areas. For example, regarding high-quality full employment as a priority goal of economic and social development is inseparable from supporting the development of industries and enterprises with a strong capacity to absorb labor, so that the process of high-quality development becomes a process of improving the quality and expanding the volume of employment. This requires that, while deepening economic system reform, we strengthen the coordination between industry and employment, and promote the coordinated linkage and aligned efforts of fiscal, monetary, investment, consumption, industrial, and regional policies with employment policy. On the whole, we must scientifically grasp the relationship between economic system reform and reforms in other areas, focusing on key fields and crucial links to take the lead in achieving breakthroughs in economic system reform, while ensuring other reforms follow up in a timely manner and exert synergistic force. At the same time, we must confront contradictions and problems directly, have the courage to eradicate "stubborn ailments" [11], and dare to break through the barriers of vested interests. With the courage to "break the cauldrons and sink the boats" [12], we must strive to open up new horizons, creating an atmosphere and conditions for the coordinated and efficient promotion of reform, ensuring that high-quality development proceeds steadily and reaches far.
Issues to Note and Methods to Master for Better Leveraging the Leading Role of Economic System Reform
General Secretary Xi Jinping pointed out in Several Major Theoretical and Practical Issues in Further Comprehensively Deepening Reform that: "Reform is a systematic project; it requires handling relationships among all parties and requires a scientific methodology." To better leverage the leading role of economic system reform, we must take Xi Jinping Economic Thought as our guide, fully play the leadership role of the Party in overseeing the overall situation and coordinating all parties, and integrate Party leadership throughout all aspects and the entire process of reform. We must improve the Party's ability and level in leading economic and social development to ensure that reform always advances along the correct political direction. On this basis, we must profoundly comprehend and grasp the principles of further comprehensively deepening reform, focusing on the institutional and mechanistic obstacles that restrict high-quality development to advance deep-level reforms, injecting a continuous stream of power and vitality into high-quality development.
Respect objective laws. Economic development has its own laws, characterized by the unity of stages and continuity. By respecting the laws of economic development, grasping the general trend of development, seizing opportunities for historical change, acting in accordance with the trend, and proactively advancing reform, we can better move forward. Further comprehensively deepening reform is a process of gradual progress; we must both dare to make breakthroughs and move forward firmly step by step, advancing stage by stage—thereby continuously accumulating small victories into a grand victory—rather than rushing headlong [13] in violation of objective laws. Taking economic system reform as the lead and focusing on the institutional obstacles that restrict high-quality development to advance deep-level reforms, we must properly handle the relationships between reform and development, reform and opening up, and the present and the long term. We should coordinately promote deep-level reform and high-level opening up, pushing reform and opening up to facilitate one another. We must base ourselves on the present while keeping an eye on the long term, accurately grasp the direction of reform, and advance it unswervingly.
Adhere to a problem-oriented approach. History always advances through the continuous resolution of problems; problems are the "voice of the times." As long as we scientifically recognize, accurately grasp, and correctly solve these problems, we can continuously push our society forward. Taking economic system reform as the lead and focusing on institutional obstacles to promote deep-level reform, we must proceed from reality and start with the most urgent matters, deepening theoretical innovation and promoting institutional innovation through the resolution of practical problems. We must grasp the principal contradiction and the principal aspect of the contradiction, strengthen "problem awareness," move toward the problems, focus on the problems for rectification, and promote the implementation and effectiveness of landmark reform measures to break down the conceptual, institutional, and mechanistic obstacles restricting high-quality development.
Focus on systemic integration. As reform enters the "deep-water zone," institutional obstacles and contradictory problems become intertwined; multiple causes lead to a single effect while a single cause leads to multiple effects. Taking economic system reform as the lead to promote deep-level reform, we must place greater emphasis on systemic integration and strengthen the coordination and matching of various reform measures, ensuring that reform measures in all fields and aspects move in the same direction and form a synergy. When formulating economic development policies, we should simultaneously embed requirements for improving people's livelihoods; when formulating livelihood policies, we should simultaneously consider their effects on promoting economic development. We must analyze minutely, "peel the cocoon to find the silk" [14], and accurately identify sticking points, bottlenecks, and difficulties. We should use a systemic integration approach to establish long-term mechanisms for solving difficult problems, preventing and overcoming the phenomenon of each going their own way or hindering one another.
Encourage exploration and innovation. Constructing a high-level socialist market economic system is an unprecedented and pioneering undertaking; there are a large number of new problems encountered in new fields and new practices. We must respect the pioneering spirit of the grassroots and the masses, encouraging exploration and innovation based on reality and seeking solutions according to local conditions. At the same time, we should summarize and promote the good experiences and practices of grassroots exploration and innovation in a timely manner, promoting a virtuous interaction between reform and innovation to further stimulate the vitality of grassroots innovation and creation.
(The author is the Director of the Xi Jinping Economic Thought Research Center) Source: People's Daily (February 5, 2024; Note: original text misprinted as 2026) Editor: Huihui