Yu Bin: On the Essential Characteristics of Xi Jinping's Economic Thought

I. Firmly Grasping the Essence of Production in Human Society

Marx pointed out: "Every child knows that any nation that stopped working, not for a year, but let us say, just for a few weeks, would perish. And every child knows, too, that the amounts of products corresponding to the different needs required different and quantitatively determined amounts of the total labor of society. That this necessity of the distribution of social labor in definite proportions cannot possibly be done away with by a particular form of social production, but can only change the mode of its appearance, is self-evident. No natural laws can be done away with. What can change, in changing historical conditions, is only the form in which these laws assert themselves." Furthermore, "Labor, then, as a creator of use-values, as useful labor, is a condition of human existence which is independent of all forms of society; it is an eternal natural necessity which mediates the metabolism between man and nature."

In response to this, Comrade Xi Jinping pointed out: "Labor is the source of wealth and the source of happiness. The beautiful dreams of the human world can only be realized through honest labor; various difficulties in development can only be resolved through honest labor; all the brilliance in life can only be forged through honest labor. We must firmly establish the concept that labor is the most glorious, the most noble, the most great, and the most beautiful; we must advocate labor, benefit the laborers, and allow all people to further radiate their enthusiasm for work and release their creative potential, creating a better life through labor." Clearly, Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era (hereinafter referred to as Xi Jinping economic thought) inherits the discourses of classical Marxist writers regarding social production and labor and expands upon them.

Marx mentioned above that social production possesses different modes of appearance under different historical conditions. Many people, because they have not mastered correct philosophical thinking—namely, Marxist philosophical thinking—become obsessed with these various modes of appearance, especially the historically staged and temporary special forms of expression within capitalist society, thereby neglecting the essence of social production. Marx specifically noted: "In a society where the interconnection of social labor manifests itself as the private exchange of individual products of labor, the form in which this proportional distribution of labor asserts itself is precisely the exchange-value of these products." Many people who are lost in the modes of appearance, particularly capitalists, pursue exchange-value and even the external forms of exchange-value as wealth itself.

Marx also noted: "The utility of a thing makes it a use-value." And "Use-values remain the material content of wealth, whatever its social form may be." However, in the general formula of capital M—C—M′, "the circuit begins with the money pole and ends with the same pole. For this reason, the motive and determining purpose of this circuit is exchange-value itself." "The use-value must never be looked upon as the direct aim of the capitalist." "The capitalist produces a commodity not for its own sake, not for its use-value or for his personal consumption. The product in which the capitalist is actually interested is not the tangible product itself, but the surplus of the value of the product over the value of the capital consumed in it." Precisely for this reason, to the capitalists, "the production process is only a necessary intermediate link and a 'necessary evil' for the sake of making money. [Hence, nations with a capitalist mode of production are periodically seized by a fit of giddiness in which they try to make money without the mediation of the production process.]"

Thus, we see that in the stock market, the share prices of some enterprises with good production conditions are not high, while conversely, the prices of some poorly performing enterprises and non-productive enterprises remain high. The stock market, which panics three times a day and experiences constant ups and downs, cannot serve as a barometer for the real economy. Some Western countries, such as the United States, have carried out the hollowing out of their physical industries in the name of economic globalization, relying on the printing of paper currency to seize use-values produced by other countries, especially China.

Marx once pointed out: "It is of course absurd to assume that all capital is converted into money-capital without there being people to buy and consume the means of production—which, except for the relatively small part existing in money-form, make up the total capital—and to use them for the realization of value. ... If the majority of capitalists were to convert their capital into money-capital, the result would be a massive devaluation of money-capital and a staggering drop in the rate of interest; many people would immediately find it impossible to live on their interest and would thus be forced to become industrial capitalists again." This indicates that although the fictitious economy, such as interest-bearing capital and share capital, can directly bring in surplus value like interest and dividends, it cannot exist apart from industrial capital, which constitutes the real economy.

However, a phenomenon that does not hold true for a single country may actually exist for the global economy. Economic globalization may lead to unbalanced regional economic development, such that industrial capital concentrates in some countries while money-capital concentrates in others. In countries where large amounts of money-capital are relatively concentrated, their main capital has already detached from the form of physical capital and converted into the form of fictitious capital. Today, the reason why the financial industry within the tertiary sector of developed Western countries carries such a large weight is also that they have, both openly and covertly, used the "opening up" of other nations to control their economic sectors, thereby compensating for their own domestic industrial hollowing out. The American proposal of the "Chimerica" model—meaning China produces and America consumes—is based on this current status.

However, from the perspective of economic development, this allocation of resources is actually disadvantageous to nations that have detached from the real economy. Marx mentioned in Capital that Venice lent huge amounts of money to Holland, Holland lent huge amounts of capital to its powerful competitor Britain, and Britain similarly lent capital to the United States. The result we see is that the former's fictitious economy developed, while the latter's real economy developed; specifically, the latter’s important position in the world economy eventually surpassed the former. Of course, the prerequisite is that the latter can ultimately free its domestic real economy from the control of the former’s fictitious economy—and for the latter, which possesses the material power of the real economy, this is not particularly difficult as long as they have the courage to think and act ^[11].

Comrade Xi Jinping’s understanding of this is very clear. He has pointed out: "We must vigorously develop the real economy and build a solid foundation for a modernized economic system. The real economy is the foundation upon which a country's economy stands, the fundamental source of wealth creation, and an important pillar of national strength." "Our policy basis should be placed on enterprises, especially those in the real economy, giving high priority to the healthy development of the real economy and enhancing its profitability." When discussing supply-side structural reform, he also noted: "From the perspective of political economy, the essence of supply-side structural reform is to enable our country’s supply capacity to better satisfy the growing, upgrading, and individualized material, cultural, and ecological environment needs of the broad masses of the people, thereby realizing the socialist purpose of production." The "supply capacity" mentioned here also refers to the real economy.

Marx also pointed out: "Just as everything has become a monopoly, there are also nowadays some branches of industry which dominate all others and secure for the nations which most cultivate them the command of the world market." In recent years, some people have advocated the theory of comparative advantage and proposed "New Structural Economics" ^[12]. Its aim is to have developed countries engage in those industrial sectors that dominate all others, while letting developing countries, especially China, "concentrate" on all those other sectors that are dominated. This is intended to let those nations that rule the world market stand at the center of the world stage while marginalizing China. This set of theories is specious (sì shì ér fēi) ^[13] but has a large market in Chinese educational and academic circles and has received considerable support.

However, the understanding of Comrade Xi Jinping, who is leading China toward the center of the world stage, is also very clear. He proposed: "Speed up the building of China into a manufacturing power, accelerate the development of advanced manufacturing, and promote the deep integration of the internet, big data, and artificial intelligence with the real economy. We will cultivate new growth points and form new drivers in areas such as mid-to-high-end consumption, innovation-led development, green and low-carbon transitions, the sharing economy, modern supply chains, and human capital services. We will support the optimization and upgrading of traditional industries, accelerate the development of the modern service industry, and aim for international standards to improve quality. We will promote Chinese industries toward the mid-to-high end of the global value chain and cultivate several world-class advanced manufacturing clusters." ^[17] It is quite obvious that, contrary to New Structural Economics, Xi Jinping economic thought aims to lead the Chinese nation to become—or likewise become—a nation that rules the world market. It aims to let China stand at the center of the world stage and to overcome rather than indulge China’s "comparative disadvantages," so that other countries lose the "comparative advantage" of "speaking to China from a position of strength" ^[14].

Within the real economy, science and technology are the primary productive forces, but laborers—especially those with higher quality, i.e., stronger labor capacity—are the most critical factor. Marx pointed out: "Since material wealth, the world of use-values, consists only of natural materials modified by labor... and since the use-value of labor-power, its actual exercise, is labor itself... [therefore] labor-power is both the general possibility of material wealth and the sole source of wealth as exchange-value having a certain social form." Regarding this, Comrade Xi Jinping pointed out: "We must always attach high importance to improving the quality of laborers and cultivate a vast army of high-quality laborers. The quality of laborers is vital to the development of a country and a nation. The more knowledge and talent laborers accumulate, the greater their creative capacity. Improving the cultural and ethical quality of the entire nation, including the vast number of laborers, is a long-term plan for national development. Facing increasingly fierce international competition, whether a country can seize the initiative and win the advantage in development depends more and more on the quality of its citizens, especially the vast number of laborers. We must implement projects for building the quality of employees and promote the building of a vast army of knowledgeable, skilled, and innovative laborers." To improve the quality of laborers and enhance labor capacity, it is necessary to improve the lives of laborers and shorten working hours, so that they have the time and financial resources to enhance their quality and capacity. Regarding this, Comrade Xi Jinping noted: "We must establish and improve the mechanism for safeguarding the rights and interests of the masses, led by the Party and the government. Focusing on issues such as labor and employment, vocational training, income distribution, social security, and occupational health and safety, we must attend to frontline workers, migrant workers ^[15], and workers in difficulty. We must improve systems and remove obstacles that prevent laborers from participating in and sharing the fruits of development, striving to allow laborers to achieve decent labor and well-rounded development."

In short, Xi Jinping economic thought is grounded in the real economy and the satisfaction of the people’s needs, firmly grasping the essence of production in human society.

II. Firmly Grasping the Principal Contradiction of Chinese Society in the New Era

The progress of any society is realized through the evolution and resolution of its principal social contradiction. In capitalist society, the principal contradiction is that between the socialization of production and the private appropriation of the means of production; on this basis, the class contradiction between the bourgeoisie and the proletariat is formed. The bourgeoisie has neither the capacity nor the will to resolve these contradictions. Consequently, as capitalist production develops, social contradictions sharpen and social crises intensify, which must ultimately drive proletarian revolution and the dissolution of capitalist society. In a socialist society, the contradiction between the socialization of production and the private appropriation of the means of production has either been completely eliminated through the comprehensive establishment of public ownership, or has been weakened into a secondary social contradiction where public ownership remains the mainstay. The principal contradiction of society has transitioned into a contradiction between the people’s ever-growing material and cultural needs and social production that is either insufficient or characterized by unbalanced distribution. Thus, the resolution of the principal contradiction in a socialist society involves advancing with the times to continuously satisfy the people’s ever-growing and evolving needs.

If such a socialist society is established through a special historical opportunity under conditions of undeveloped productive forces, this contradiction primarily manifests as that between the people's ever-growing material and cultural needs and backward social production. Before and during the early period of Reform and Opening-up ^[6], the principal contradiction in Chinese society was of this nature. However, if such a socialist society is established under conditions where productive forces are relatively developed, or have become so after a period of development, then the contradiction primarily manifests as that between the people’s ever-growing needs for a better life and unbalanced and inadequate development. Should advanced Western capitalist countries enter socialist society in the future, their societies would exist in this latter state. At present, having entered the New Era, the society of socialism with Chinese characteristics is already in this latter state. This is because, through 40 years of development under Reform and Opening-up, we have solved the problem of "whether something exists" (quantitative availability) and are now tasked with solving the problem of "how good it is" (qualitative adequacy). In this regard, Comrade Xi Jinping pointed out: "We must strive to improve the quality and efficiency of development to better meet the multi-faceted and growing needs of the people, and better promote the well-rounded development of the individual and common prosperity for all." Xi Jinping’s economic thought is rooted in the real economy ^[7] and the satisfaction of the people's needs precisely to resolve the principal contradiction of socialism with Chinese characteristics in the New Era, to propel its forward development, to enable China to take the lead in entering a new and higher stage of human social development, and to realize the great rejuvenation of the Chinese nation.

To solve the problem of "how good it is," we must address the problem of unbalanced and inadequate development. Regarding unbalanced development, Comrade Xi Jinping noted: "Some of our industries and sectors suffer from serious overcapacity, while at the same time, we still rely on imports for a large amount of key equipment, core technologies, and high-end products; our own vast domestic market is not in our own hands." "The facts prove that it is not that China lacks demand or has no demand, but rather that demand has changed while the supply of products has not, and quality and service cannot keep up. The insufficiency of effective supply capacity has led to a large-scale 'spillover of demand' and a serious outflow of consumption power. To solve these structural problems, we must advance supply-side reform." Furthermore, "the focus of supply-side structural reform is to liberate and develop the social productive forces, utilize reform methods to promote structural adjustment, reduce ineffective and low-end supply, expand effective and mid-to-high-end supply, and enhance the adaptability and flexibility of the supply structure to changes in demand." As effective and mid-to-high-end supply increases—that is, with the development of the corresponding real economy—the vast domestic market will return to or be held in our own hands. Spilled-over demand and outflowing consumption power will return to the domestic market; this will not only satisfy the people's needs for a better life but also promote domestic economic development and resolve the problem of inadequate development, thereby inevitably forming a great domestic circulation of production and consumption. This means that to construct a "new development pattern in which domestic circulation is the mainstay and domestic and international dual circulation promote each other," it is necessary to deeply advance supply-side structural reform. The former is the result of the latter, while the latter is the cause of the former.

Beyond the irrationality of the supply structure, unbalanced development is also manifested in various gaps, such as the gap between urban and rural regional development. Regarding this, Comrade Xi Jinping pointed out: "When we speak of narrowing the urban-rural regional development gap, it cannot be viewed merely as narrowing the gap in total GDP or growth rates; rather, it should be about narrowing gaps in resident income levels, infrastructure accessibility, equalization of basic public services, and people's living standards." All of these require elevating the development level of the real economy in underdeveloped areas. Comrade Xi Jinping also noted: "The cost of living, especially housing costs, varies greatly between urban and rural areas; looking only at income does not accurately reflect the issue." This effectively means that comparing development gaps requires looking at the volume of use-value embodied in the development of the real economy, rather than at exchange-value, and certainly not at price levels influenced by inflation.

Within unbalanced development, the most significant gap is the wealth gap or even polarization. Regarding this, Comrade Xi Jinping noted: "Eliminating poverty, improving people's livelihoods, and gradually realizing common prosperity are the essential requirements of socialism and an important mission of our Party." Even in his youth, while serving as the Party branch secretary in Liangjiahe Village ^[8], he led the villagers in developing production, aspiring to "let the villagers have a full meal of meat, and eat meat frequently." After assuming the highest national leadership position, Comrade Xi Jinping proposed targeted poverty alleviation. The battle against poverty was conducted with practical labor and solid results, doing real deeds for the impoverished masses and building real industry. Consequently, the goal of building a moderately prosperous society in all respects was achieved as scheduled, taking the lead among the world's most populous nations in eliminating absolute poverty and satisfying the most basic needs of the relatively impoverished population.

When housing became a basic need for the people's better life yet was restricted by high property prices, Comrade Xi Jinping proposed: "To solve the real estate problem, we must adhere to the positioning that 'houses are for living in, not for speculation.'" This emphasizes the use-value attribute of housing and de-emphasizes its exchange-value attribute. It implies that housing should not become an ordinary commodity possessing the dual nature of use-value and exchange-value; housing cannot be arbitrarily commodified or marketized. Under the guidance of this economic thought, joint-ownership housing began to enter the market, satisfying the urgent housing needs of some of the masses. In contrast, previous policies intended to limit house prices while maintaining the premise of housing commodification and marketization; as a result, under the "iron laws" of the market economy, the efficacy of those policies was neutralized, and prices only rose without falling, failing to meet the people's needs for a better life.

According to reports, Russian President Putin has pointed out that the current model of capitalism has exhausted itself; the existing capitalist model, which constitutes the foundation of the social systems of the vast majority of countries, has reached its end and can no longer provide solutions to increasingly complex contradictions. In fact, Western developed capitalist countries—especially the United States—having reached the stage of neo-imperialism, are no longer content with exploiting surplus value from workers directly through the production of use-values. Instead, they attempt to decouple from the production process and rely on various powers—such as the power to issue fiat currency, the power to collect patent fees, the power to set carbon emission quotas, and the power to grant trade licenses—to seize the wealth created by other nations. They have thus become an obstacle to the development of social productive forces, provocateurs of international disputes and conflicts, and creators of international economic, political, and military risks. Regarding this, Comrade Xi Jinping pointed out: "We must place risk prevention in a prominent position, 'planning before the sprout appears, and considering what has not yet occurred' ^[9], striving to prevent major risks or to be able to withstand and overcome them when they do appear." The specific method is: "Facing complex domestic and international economic situations, we must firmly hold onto the task of guaranteeing and improving people's livelihoods as our baseline. The allocation of fiscal and other public funds must lean toward the livelihood sector; spending on livelihoods must be protected and must not be squeezed out at will. We must highlight key areas and exert force on the issues the masses are most concerned with, such as employment, education, medical care, housing, elderly care, and poverty alleviation."

It is evident that Xi Jinping’s economic thought, by firmly grasping the principal contradiction of socialism with Chinese characteristics in the New Era, can not only vigorously improve the quality and efficiency of the real economy's development to "better satisfy the people's ever-growing needs in economic, political, cultural, social, and ecological dimensions, and better promote the well-rounded development of the individual and all-around social progress," but also unite the domestic populace and win the hearts of the people. This resolves risks brought about by the intensification of domestic contradictions and guards against international risks. In the face of the tremendous risks caused by the COVID-19 pandemic, the domestic populace united with the government to fight the epidemic, performing far better than Western developed countries. Supported by our massive real economy, our anti-epidemic supplies were not only self-sufficient but were also exported in large quantities to support the global fight against the epidemic, reducing the risks to world economic development.

III. Highlighting the New Realm of Chinese Marxist Political Economy

The New Development Philosophy in Xi Jinping’s economic thought—namely "innovation, coordination, green development, openness, and sharing"—promotes the development of the real economy and satisfies the people's needs for a better life, highlighting the new realm of Chinese Marxist political economy.

1. Innovative development is high-quality development Marx pointed out: "Labor of a higher-than-average productivity acts as intensified labor, or rather, it creates in equal periods of time greater values than for the same kind of social average labor." To obtain labor of particularly high productivity and achieve high-quality development, one must innovate and apply more science and wisdom to production itself and to its organization and management. Regarding this, Comrade Xi Jinping pointed out: "The reason we place innovation in the primary position is that innovation is the primary driver leading development. The driver of development determines the speed, efficacy, and sustainability of development." He also noted: "Reviewing the course of world development in modern times, one can clearly see that the innovative capacity of a country or nation fundamentally influences or even determines its future and destiny."

In a market economy, labor of higher-than-average productivity can not only create more value but also bring more surplus value. "The capitalist who employs the improved method of production, appropriates as surplus-labor a greater portion of the working-day than the rest of the capitalists in the same industry." However, "this extra surplus-value vanishes, so soon as the new method of production has become generalized, and at the same time the difference between the individual value of the cheapened commodity and its social value vanishes." Therefore, keeping new technologies in one's own hands and preventing the generalization of new production methods becomes the means by which capitalists maintain their seizure of extra surplus value. This is why "key core technologies cannot be asked for, bought, or begged for." By mastering key core technologies through innovation, one can not only obtain better economic benefits but also "fundamentally guarantee national economic security, national defense security, and other securities." Regarding this, Comrade Xi Jinping pointed out: "The fundamental driver for transforming the mode of development and adjusting the structure lies in innovation. We must promote the vigorous development of new technologies, new industries, and new business forms, aim at the frontiers of world science and technology, form a batch of major innovative achievements, and promote the industrialization of scientific and technological achievements, so that innovative fruits become tangible economic activities and form new product clusters and industrial clusters."

However, "innovation is a complex social system engineering project involving all areas of the economy and society." First, innovation requires corresponding social demand. The people's needs for a better life create such social demand. Engels pointed out: "If society has a technical need, that helps science forward more than ten universities." However, in earlier times, some proposed that "it is better to buy than to build, and better to rent than to buy," which seriously weakened the social demand for innovation. Comrade Xi Jinping proposed: "This logic must be reversed."

On the other hand, Marx pointed out: "Machines invented in England today are only used in North America, just as machines invented in Germany in the 16th and 17th centuries were only used in Holland, and certain French inventions in the 18th century were only used in England. In older, developed countries, the use of machinery itself in some branches of industry produces such a redundancy of labor in other branches that the wages in these other branches sink below the value of labor-power, thus preventing the application of machinery and making its use superfluous and often impossible from the standpoint of capital, because capital’s profit is not derived from reducing the total labor employed, but from reducing paid labor." Therefore, to promote innovation and realize high-quality economic development, it is necessary to increase the remuneration of laborers, abandon the so-called comparative advantage of cheap labor, and build the foundation of economic development on innovation rather than on the cheapness of labor.

2. Coordinated development is the balanced development of reproduction

Comrade Xi Jinping has noted, "Marx proposed that social reproduction is divided into two major departments: the production of the means of production and the production of the means of consumption. These two departments must maintain a certain proportional relationship to ensure the smooth realization of social reproduction." Therefore, coordinated development is the balanced development of reproduction within the real economy.

Marx also once pointed out: "Society must calculate beforehand how much labor, means of production, and means of subsistence it can expend without injury on such lines of business as, for instance, the building of railways, which do not furnish any means of production or subsistence, or produce any useful effect, for a long time, a year or more, while they extract labor, means of production, and means of subsistence from the total annual production." In the history of construction in New China, many projects were launched but later abandoned because the subsequent capacity to continue was lacking, resulting in enormous waste. One reason for this was the failure to perform this type of advance calculation and coordination.

Comrade Mao Zedong also discussed a problem regarding coordination in the past planned economy. He pointed out that the previous method of formulating plans was basically learned from the Soviet Union: first determining the amount of steel, then calculating based on that how much coal, electricity, and transport capacity were needed, and then calculating the necessary increase in urban population and welfare; if the output of steel decreased, everything else would be cut accordingly. This was a method of "operating a calculator" that did not conform to reality and was unworkable. Such calculations failed to account for "Old Man Heaven" ^[10]—when natural disasters struck and failed to provide that much grain, urban populations could not increase by that much, and other plans fell through. War was not calculated in, nor was international aid. Changing the planning method was a revolution. Over several years, we fumbled our way toward some methods, and our policy became taking agriculture as the foundation and industry as the leading factor. In formulating plans according to this policy, we first look at how much grain can possibly be produced, then at how much chemical fertilizer, pesticide, machinery, steel, and iron are needed, while also considering the requirements of war.

Today, for reproduction to develop in balance, the state still needs to engage in sound planning and cannot allow the market to allocate resources according to the preferences of capital for profitability; otherwise, it will inevitably lead to the disorderly expansion of capital and parasitic monopolies. Only by actively exerting the role of the government and the leading role of the state-owned economy can we achieve the goal: "To achieve coordinated development, we must identify weak links, exert more effort in shoring them up, and tap development potential and enhance development momentum by shoring up these weak links." This further prevents Western developed countries from using our uncoordinated weak links to "strangle our necks" ^[11]. The primary means of shoring up these weak links is the innovation mentioned previously.

On the other hand, we also need to prevent the shocks of uncoordinated Western economies from impacting China's economic development. For example, in 2014, incidents of dairy farmers "dumping milk and killing cows" on a large scale occurred in Inner Mongolia and other places in China. The reason was that after the 2008 American financial crisis broke out, the economies of Western developed capitalist countries fell into depression, "causing serious overproduction in the world dairy industry and a drop in international milk prices, making China a dumping ground for surplus foreign milk powder, which in turn seriously impacted China's domestic dairy production." Therefore, to achieve coordinated development, we must actively exert the role of the government in resource allocation according to Xi Jinping's economic thought, safeguard the balanced development of social reproduction, and maintain China's economic security.

3. Green development is sustainable development

Marx pointed out, "Even an entire society, a nation, or all simultaneously existing societies taken together, are not the owners of the globe. They are only its possessors, its beneficiaries, and like good fathers of families (boni patres familias), they must hand it down to succeeding generations in an improved condition." Regarding this, Comrade Xi Jinping pointed out, "Lucid waters and lush mountains are not only natural and ecological wealth, but also social and economic wealth. Protecting the ecological environment is protecting natural value and increasing natural capital; it is protecting the potential and momentum of economic and social development, so that lucid waters and lush mountains can continuously yield ecological, economic, and social benefits." Therefore, green development is sustainable development, which must meet the needs of the present generation for a better life while also meeting the needs of generations to come.

Marx once pointed out, "Climate and territorial conditions... made artificial irrigation by canals and waterworks the basis of Oriental agriculture... All the governments in Asia have been compelled to execute an economic function, the function of providing public works. This artificial fertilization of the soil, dependent on a central government, and immediately falling into decay with the neglect of irrigation and drainage, explains the otherwise strange fact that we now find whole territories barren and desert that were once brilliantly cultivated, as Palmyra, Petra, the ruins of Yemen, and large provinces of Egypt, Persia, and Hindostan." Comrade Xi Jinping also mentioned, "According to historical records, the Loess Plateau, the Wei River basin, and the Taihang Mountains, which now have sparse vegetation, were once covered with forests and beautiful scenery, suitable for cultivation and providing convenient water and grass for livestock. Due to the destruction of forests for wasteland reclamation and excessive logging, the ecological environment in these places was severely damaged." Clearly, managing and protecting the ecological environment is the government's undeniable responsibility. To this, Comrade Xi Jinping emphasized, "Leading officials at all levels must hold firm convictions regarding the protection of the ecological environment, resolutely abandon development models and practices that damage or even destroy the ecological environment, and must never again exchange temporary or local economic growth for the sacrifice of the ecological environment."

Marx once discussed the pressure of population on the productive forces: "In the states of antiquity, in Greece and Rome, the forced emigration that took the form of the periodic establishment of colonies formed a fixed link in the social system. The entire system of those states was based on a certain limit to the population, beyond which the ancient civilization itself ran the risk of perishing. Why was this so? Because the application of science to material production was entirely unheard of for those states. To preserve their civilization, they could only maintain a small population." Comrade Xi Jinping also pointed out, "In the past, due to the low level of productive forces, we had to destroy forests and grasslands for wasteland reclamation and fill lakes to create land in order to produce more grain. Now that the problem of food and clothing has been stably solved, protecting the ecological environment should and must become an inherent part of development." Today, although the application of science in material production and the improvement of productive forces allow the same land area to carry a larger population, on the one hand, a limited ecological environment cannot sustain an infinite population, and the protection of the environment inevitably requires certain limits on population size. On the other hand, Marx pointed out, "The growth of productive forces requires a reduction in population, and expels the surplus population through famine or emigration... Society is undergoing such a silent revolution, to which everything must submit, and which takes as little notice of the human existences it destroys as an earthquake does of the houses it subdues. The classes and the races, too weak to master the new conditions of life, must give way." Therefore, to achieve green development, it is still necessary to pay attention to family planning, so that both production and population can develop sustainably.

4. Open development is more efficient development

Marx pointed out, "If the town worker is more developed than the agricultural laborer, this is only because his mode of labor causes him to live in society, while the mode of labor of the agricultural laborer connects him directly with nature." Clearly, for an individual to achieve all-around development, they must strengthen external contact. Regarding this, Marx and Engels also pointed out that the universal development of productive forces establishes universal intercourse among men, which makes each nation dependent on the revolutions of others, and finally has put world-historical, empirically universal individuals in place of local ones. Comrade Xi Jinping also points out, "China's development achievements over the past 30-plus years have benefited from opening up to the outside world. Whether a country can become rich and strong, or a nation can achieve rejuvenation, the most important thing is to see whether that country or nation can conform to the trend of the times and grasp the initiative in the progress of history." Therefore, open development is more efficient development, capable of more efficiently developing the real economy and meeting the people's needs for a better life.

Comrade Xi Jinping pointed out, "Practice tells us that to grow and become strong, we must actively adapt to the trend of economic globalization, persist in opening up to the outside world, and fully utilize the advanced scientific and technological achievements and beneficial management experience created by human society." Therefore, open development is not about clinging to the international division of labor determined by the past development status and levels of productive forces in various countries, nor is it about stubbornly adhering to the so-called comparative advantages formed by one's own weaknesses in international economic exchanges. Rather, it is about learning the advanced scientific and technological achievements and beneficial management experience within other countries' comparative advantages, improving one's own level of productive forces, and changing the international division of labor that is unfavorable to oneself through changes in national strength. Additionally, open development is conducive to "building a partnership of win-win cooperation to jointly address common human challenges such as future development, food security, energy security, human health, and climate change, benefiting more countries and people while achieving our own development, and promoting balanced development on a global scale."

This also indicates that opening up to the outside world requires attention to risk prevention and addressing challenges. To this, Comrade Xi Jinping warned: "The overall environment for our open development today is more favorable than at any time in the past, but the contradictions, risks, and games we face are also unprecedented. With the slightest lapse in attention, we could fall into traps carefully set by others." Among these, the traps we particularly need to guard against are not allowing technology and food (especially food seeds) to be held in the hands of others, and not allowing ourselves to be "strangled" or monopolized by others. "Technology is like food; relying on others is unreliable. We must hold our own rice bowl; only through self-reliance can we become strong."

Comrade Xi Jinping also pointed out, "Internal demand is the fundamental driving force for China's economic development and an inevitable requirement for meeting the people's growing needs for a better life. China does not aim for a trade surplus and sincerely hopes to expand imports and promote the balance of payments in the current account." A trade surplus means a net export of domestic resources to foreign countries to meet the needs of foreigners, without an equivalent input of resources into China to meet the needs of our own people, which is inconsistent with our goal of meeting the people's needs for a better life. This situation is formed, on the one hand, because some countries restrict the export of certain goods needed by China while using the paper money they print to purchase our goods in large quantities. On the other hand, some countries have not opened up reciprocally with China; foreign capital from these countries earns huge profits in China, yet Chinese enterprises are not allowed to make equivalent investments in their home countries to earn profits. Thus, this difference in profitability is converted into a difference in trade, forming China's unique trade surplus. Therefore, open development also requires truly achieving win-win cooperation and reciprocal opening.

5. Shared development is development of the people

Comrade Xi Jinping pointed out, "The essence of the concept of sharing is to persist in the people-centered development philosophy, reflecting the requirement of gradually achieving common prosperity." He also noted, "We must persist in the principal position of the people, respond to the people's aspirations for a better life, and continuously realize, safeguard, and develop the fundamental interests of the broadest possible masses of the people, ensuring that development is for the people, relies on the people, and its fruits are shared by the people." Therefore, shared development is the development of the people. Obviously, only the development of the people can meet the needs of the people. Development in class societies prior to the emergence of socialist society was only the development of a tiny minority, while the masses of the people remained in a position of being exploited and oppressed, unable to ensure that even their most basic needs were met.

Marx once pointed out, "All the English bourgeoisie may be forced to do [in India] will neither emancipate nor materially mend the social condition of the mass of the people, depending not only on the development of the productive forces, but on their appropriation by the people." Therefore, if the essence of socialism requires the liberation and development of productive forces, then this essence inevitably requires "ensuring that the liberated and developed productive forces belong to the people, which likewise means we must persist in the mainstay status of public ownership." Only in this way can we "eliminate poverty, improve people's livelihoods, and gradually achieve common prosperity." Regarding this, Comrade Xi Jinping emphasized, "State-owned enterprises are an important force for strengthening the country's comprehensive strength and safeguarding the common interests of the people. We must, with perfect assurance, make them stronger, better, and larger, continuously enhancing their vitality, influence, and risk-resistance capacity, and realizing the maintenance and appreciation of the value of state-owned assets."

In fact, implementing the concept of shared development "boils down to matters on two levels. First, fully mobilizing the enthusiasm, initiative, and creativity of the masses, concentrating the power of the whole nation to advance the cause of socialism with Chinese characteristics, and continuously making the 'cake' bigger. Second, dividing the ever-growing 'cake' well, so that the superiority of the socialist system is more fully reflected and the masses of the people have a greater sense of gain." However, achieving these two levels is only possible within public ownership enterprises.

This is because, within private-ownership enterprises, those who bake the "cake" and those who divide the "cake" are not only entirely different people but are, in fact, mutually antagonistic. Those who divide the cake always seek to appropriate the entire cake, and they always strive to distribute as little as possible to those who baked it. They are never willing to "realize synchronized increases in labor remuneration alongside improvements in labor productivity," and the latter, naturally, lack the enthusiasm, initiative, and creativity to enlarge the "cake."

In this regard, although the government can "improve redistribution adjustment mechanisms—primarily through taxation, social security, and transfer payments—to maintain social fairness and justice, resolve the problem of income gaps, and ensure that the fruits of development benefit all people more extensively and equitably," the reality is that while domestic private enterprises account for over 80% of urban employment, their contribution to national tax revenue only exceeds 50%. It is evident that trying to achieve redistributive adjustments that "maintain social fairness and justice" solely through taxing private enterprises is exceedingly difficult, if not impossible. One would have to use the remainder of that 50% of tax revenue (after deducting general public expenditures) to resolve the income gap issues for 80% of the urban workforce. The fact that Western countries experienced sovereign debt crises even without pursuing common prosperity—the United States being no exception—serves as a case in point. Therefore, ensuring that the fruits of development benefit all people more extensively and equitably must still rely on the public-owned economy, which has high taxation efficiency. This is the fundamental reason why Comrade Xi Jinping proposed: "The dominant position of public ownership must not be shaken, and the leading role of the state-owned economy must not be shaken; this is the institutional guarantee for ensuring that 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 upholding our country’s socialist system."

(Author: Yu Bin, Researcher at the Institute of Marxism Studies, Chinese Academy of Social Sciences. This article was slightly modified upon publication; for citations, please refer to the published version.) Web Editor: Tongxin Source: Marxism Studies ^[15], Issue 2, 2022.