Shi Yulong: Constructing an Independent Knowledge System of Chinese Economics Guided by Xi Jinping's Economic Thought
General Secretary Xi Jinping recently issued important instructions on promoting the high-quality development of philosophy and social sciences, emphasizing the need to: "Deepen the systematic and academic research and explanation of the Party’s innovative theories, and accelerate the construction of an independent knowledge system for Chinese philosophy and social sciences." Xi Jinping’s economic thought is the concentrated expression of the Party’s innovative theories in the economic field for the New Era. To construct an independent knowledge system for Chinese economics, we must take Xi Jinping’s economic thought as our guide, condense concepts, reveal principles, and innovate theories. We must systematically demonstrate the core essentials, rich connotations, and practical requirements of Xi Jinping’s economic thought, and vividly interpret its value positions and spiritual essence. The following is a general analysis of this issue from three aspects.
Extracting identifying concepts to demarcate the starting point of the independent knowledge system
General Secretary Xi Jinping pointed out: "We must be adept at extracting identifying concepts and creating new concepts, categories, and expressions that are easily understood and accepted by the international community." Constructing an independent knowledge system for Chinese economics is inseparable from the formation of a series of identifying concepts, categories, and expressions that can accurately characterize our country's economic practice and guide its developmental direction, thereby demarcating the starting point of the independent knowledge system.
Mining the laws of economic development to induce identifying concepts. Since the 18th National Congress of the CPC [1], a series of new phenomena have appeared in China's economic operation and development. General Secretary Xi Jinping conducted in-depth investigations and analyses on the ground, seeing through the phenomena to the essence, grasping the laws to clarify the direction. Through a series of inductions and extractions—such as the "period of three overlapping factors" [2], the "new normal of economic development" [3], and "supply-side structural reform"—he proposed the important identifying concept of high-quality development. This concept not only solved the problem of understanding the stage-specific characteristics of our country’s economic development but also pointed out the way forward and the methods for solution. It determined the medium-to-long-term theme of China's economic and social development. From this, a series of important judgments were formed, such as "high-quality development is the hard truth of the New Era," "high-quality development is the primary task of building a modern socialist country in all respects," and "high-quality development is an inevitable requirement for Chinese-path modernization," all of which have become important achievements of the independent knowledge system of Chinese economics.
Grasping the logic of economic development to deduce identifying concepts. General Secretary Xi Jinping profoundly summarized the experiences and lessons of development at home and abroad, analyzed the major trends of domestic and international development, and proposed the New Development Philosophy featuring innovation, coordination, green development, openness, and sharing. He determined the guiding ideology for future development and clarified that high-quality development is "development where innovation becomes the primary driver, coordination becomes an endogenous characteristic, green becomes the universal form, openness becomes the only way, and sharing becomes the fundamental purpose." The New Development Philosophy constructs a new framework covering the impetus, requirements, forms, directions, and purposes of development. It is a global and holistic ideological concept with universal guiding significance, and it is also a vital identifying concept of the independent knowledge system of Chinese economics.
Inquiring into the mechanisms of economic operation to generalize identifying concepts. Since the reform and opening up, and especially since joining the World Trade Organization, China has seized the opportunities of economic globalization, utilized its comparative advantages, and promoted reform and opening up, forming an economic development system deeply integrated with the international market. After the international financial crisis, economic globalization encountered headwinds. In particular, the COVID-19 pandemic led to the breaking of global industrial and supply chains, severely hindering the flow of personnel, raw materials, and finished goods. In this context, General Secretary Xi Jinping made a strategic deployment to accelerate the construction of a new development stage featuring dual circulation, in which domestic circulation is the mainstay and domestic and international circulations reinforce each other. The new development paradigm scientifically expresses the mechanism of economic circulation and growth under new circumstances; it both reflects the universal characteristics of a large-sized economy being dominated by internal demand and internal circulation, and clarifies the strategic choice of smoothing the domestic economic cycle and achieving high-level self-reliance and self-strengthening at the current stage. The strong resilience and innovative vitality shown by China's economy fully attest to the scientific nature and vitality of this identifying concept.
Revealing fundamental principles to establish the framework of the independent knowledge system
In the great practice of leading China's economic development to achieve historical accomplishments and undergo historical transformations in the New Era, Xi Jinping’s economic thought has deepened the regular understanding of economic development. It has provided scientific explanations for major theoretical and practical problems, as well as the ideological weapons and academic foundation for guiding developmental practice and promoting theoretical innovation. Here are a few examples.
The principle of mutual promotion between the "dual circulations" in the development of a large-sized economy. Constructing the new development paradigm profoundly reveals the dialectical unity between domestic and international circulation—that is, relying on the domestic cycle to enhance endogenous developmental momentum and reliability, and utilizing the international cycle to improve the quality and level of development. This fundamental principle inherits and develops the theoretical analytical frameworks of Marxist political economy regarding economic cycles and social reproduction. It provides profound insight into and judgment of the trend of adjusting the ratio between China's domestic and international circulations, scientifically grasps the relationship between self-reliance and expanding openness, and draws the important conclusion that a large-sized economy must base its development on its own strength. This provides us with a strategic choice for maintaining the initiative in development under open conditions.
The principle of transformation and improvement between quantity and quality in economic growth. Economic development always comprises two organically unified aspects: "quantity" and "quality." The increase in quantity is mainly reflected in the expansion of economic scale and the improvement of total output and per capita levels. The improvement in quality is mainly manifested in changes in quality dimensions such as optimization of economic structure, increased efficiency, improved benefits, and enhanced resilience. The accumulation of quantity creates conditions and space for the improvement of quality, while the improvement of quality stipulates the theme and direction for the growth of quantity. This principle inherits and develops the analytical framework of Marxist political economy regarding extensive and intensive expanded reproduction. It reveals the objective law that modern economic development involves quantity and quality supporting and transforming each other at different stages, promoting qualitative change through quantitative change and achieving victory through quality. This constitutes an important principle of Chinese economics concerning development modes and growth paths.
The principle of the evolution of the state of productive forces. Grounded in the trend of leaping productive forces brought about by the new round of technological revolution and industrial transformation, Xi Jinping’s economic thought highly condenses the new development of productive forces and their elements. It proposes that new quality productive forces are an advanced state of productive forces that align with the New Development Philosophy, with the fundamental connotation being the leap in the quality of laborers, means of labor, and objects of labor, as well as their optimal combination. This principle profoundly reveals the internal mechanism of the transition in the state of productive forces, scientifically identifies the "qualitative" and "quantitative" determinants of productive forces, and expands the understanding of the attributes of the state of productive forces.
The principle of the synergetic effect of government and market. The government and the market are two means of regulating the economy. Allowing the market to play the decisive role in resource allocation primarily relies on price mechanisms and competition mechanisms to achieve efficient resource allocation and enhance economic efficiency. Better playing the role of the government primarily involves effectively conducting macroeconomic governance, standardizing the implementation of market supervision, and optimizing public services through planning, policies, and technical standards to maintain market order, guarantee fairness and justice, and compensate for market failures. The effective operation of the market is inseparable from the basic guarantee of the government in maintaining rules and stabilizing expectations; the government's better role must take the respect for market laws and compliance with market development trends as its fundamental prerequisite. This principle profoundly reveals the internal logic of the organic combination of the basic socialist system and the market economy, providing theoretical support for constructing a high-level socialist market economy system.
Proposing original theories to construct an independent knowledge system in practice
By summarizing characteristics, explaining phenomena, analyzing causes, and discovering mechanisms, and based on identifying concepts and fundamental principles, it is possible to propose persuasive, guiding, and visionary original theories.
For example, based on the principle of the synergetic effect of government and market, an original theory of combining an effective market with a proactive government has been formed. The main points of this theory include: giving full play to the decisive role of the market in resource allocation and better playing the role of the government; the government should do some things and refrain from doing others, properly solving the problems of absence and overstepping; the more standardized the government's behavior, the more effective the market's role; striving to form an economic order that is both "dynamic without chaos" and "well-regulated"; and so on. This theory both gives full play to the strengths of the market economy and demonstrates the superiority of the socialist system, promoting the market and the government to each find their place, perform their strengths, and act in synergy. This theory creatively inherits and develops the basic principles of Marxist political economy regarding the dialectical unity of productive forces and relations of production, and the economic base and the superstructure, contributing a Chinese solution to the global problem of the relationship between government and market.
For another example, centering on what a proactive government "does," a theory of macroeconomic governance under the conditions of a socialist market economy has been formed. From the perspective of modernizing the national governance system and capacity, a system of institutions and policies has been constructed, with national development planning as the strategic guide and fiscal and monetary policies as the primary means, including the coordinated efforts of policies in employment, industry, investment, consumption, regions, environmental protection, and science and technology. It emphasizes seeking a dynamic balance among multiple goals and improving the effectiveness of macroeconomic governance through innovative methods such as enhancing the consistency of policy orientation, strengthening counter-cyclical and cross-cyclical adjustments, and giving equal weight to behavioral and expectancy guidance. In addition to focusing on traditional macroeconomic regulation goals such as economic growth, price stability, full employment, and balance of international payments, macroeconomic governance also incorporates industrial and regional structural optimization, scientific and technological innovation, ecological civilization, and development and security into the scope of governance, with corresponding governance measures designed. This is conducive to stimulating the endogenous drive and creativity of the whole of society. This theory transcends the macroeconomic regulation theory of Western economics, which mainly uses fiscal and monetary policy tools for aggregate management. It develops the theory of the national economic comprehensive balance, macroeconomic management, and macroeconomic regulation in socialist political economy with Chinese characteristics, and is one of the important original theoretical achievements of the independent knowledge system of Chinese economics.
(The author is the Director of the Xi Jinping Economic Thought Research Center) Source: People's Daily (June 1, 2026) Editor: Huihui