Injecting strong impetus into promoting high-quality development: A review of the achievements of economic system reform since the Third Plenary Session of the 18th CPC Central Committee

Beijing, June 26 (Xinhua) -- Injecting strong momentum into promoting high-quality development -- A review of the achievements of economic system reform since the Third Plenary Session of the 18th CPC Central Committee

Economic system reform is the focus of comprehensively deepening reform.

The Third Plenary Session of the 18th CPC Central Committee made a number of reform arrangements, including "deepening economic system reform centered on giving the market a decisive role in resource allocation, adhering to and improving the basic economic system, and accelerating the improvement of the modern market system, the macro-control system, and the open economic system", outlining the basic framework for deepening economic system reform.

Since the new era, the Party Central Committee with Comrade Xi Jinping as the core has been far-sighted, taken overall control, grasped the general trend, put forward a series of new concepts, new ideas and new strategies, formed and developed Xi Jinping's economic thoughts in practice, and used them as a guide to deepen economic system reform, stimulate development vitality, change development methods, open up development space, and inject strong impetus into promoting high-quality development.

Give full play to the decisive role of the market and unleash the vitality of development

Now, as the peak summer season is approaching, the electricity market is attracting much attention.

On June 17, Shandong's power spot market was put into formal operation from trial operation, becoming the third power spot market in my country to be formally operated. At the same time, the new version of the basic rules for power market operation will be officially implemented on July 1.

Relying on sensitive price signals, guiding the coordinated efforts of "source, grid, load and storage" to ensure power supply, the proportion of market-based electricity transactions in my country has increased significantly since the new round of power system reform. By the end of 2023, the national power market transaction volume will be 5.67 trillion kWh, accounting for 61.4% of the total social electricity consumption.

Price is the "signal light" of market changes and the "baton" of market regulation. Up to now, more than 97% of the prices of goods and services in my country are determined by the market, reflecting that the decisive role of the market is more significant.

"Economic system reform is the focus of comprehensively deepening reform. The core issue is to properly handle the relationship between the government and the market, so that the market plays a decisive role in resource allocation and the government plays a better role."

In November 2013, the Third Plenary Session of the 18th CPC Central Committee made this important conclusion by adopting the "Decision of the CPC Central Committee on Several Major Issues Concerning Comprehensively Deepening Reforms," ​​which was drafted by General Secretary Xi Jinping himself.

The difference of just one word, raising the role of the market from "basic" to "decisive", reflects that our party's understanding of the role of the market has reached a new level and marks that the development of the socialist market economy has entered a new stage.

Handling the relationship between the government and the market is a world-class problem and a core issue in China's economic system reform.

In November 2015, General Secretary Xi Jinping stressed at the 28th collective study session of the 18th CPC Central Committee Political Bureau: "We must adhere to dialectics and the two-point theory, continue to work hard on the integration of the socialist basic system with the market economy, give full play to the advantages of both sides, and strive to solve this global economic problem in practice with both an 'effective market' and an 'effective government'."

Over the past decade, the Party Central Committee has firmly grasped the core issue of handling the relationship between the government and the market, continuously improved the basic socialist economic system, accelerated the improvement of the socialist market economic system, and adhered to the "two unshakable" principles. The decisive role of the market in resource allocation has become more prominent, and the role of the government has become more effective.

In October 2017, General Secretary Xi Jinping pointed out in his report to the 19th National Congress of the Communist Party of China that "economic system reform must focus on improving the property rights system and market-based allocation of factors, and achieve effective property rights incentives, free flow of factors, flexible price response, fair and orderly competition, and survival of the fittest among enterprises."

For the first time, data was included as a factor of production, promoting market-oriented reforms of factors such as land, labor, capital, technology, and data;

Improve the basic market economy systems such as property rights protection, market access, fair competition, and social credit, and steadily advance the construction of a high-standard market system;

Remove institutional and mechanism barriers that hinder the free flow of factors, and promote the realization of market-determined factor prices, autonomous and orderly flow, and efficient and fair allocation;

A series of unprecedented reform measures that both broke and established new ideas have been implemented and have come to fruition, activating the vitality of various business entities, institutional vitality and social creativity.

By the end of 2023, there will be 184 million registered business entities, of which more than 53 million are private enterprises, up 2.3 times and 3.9 times respectively from 2012. From 2012 to 2023, the total investment in R&D will increase from 1.03 trillion yuan to 3.3 trillion yuan, accounting for 2.64% of GDP, exceeding the average level of EU countries, and the construction of an innovative country will have achieved remarkable results.

In the autumn of 2019, at the Fourth Plenary Session of the 19th CPC Central Committee, "public ownership as the main body, the common development of multiple ownership economies, distribution according to work as the main body, the coexistence of multiple distribution methods, and the socialist market economic system" became a new summary of the basic socialist economic system. This "three-in-one" framework marks that my country's economic system has become more mature and established.

We will continue to innovate and improve macro-control, strengthen the coordination and cooperation of fiscal, monetary, employment, industrial, and investment policies; deepen the reform of the fiscal and taxation system, optimize the combination of special bonds, treasury bonds, tax and fee concessions, fiscal subsidies and other policy tools; deepen the reform of the financial system, and maintain the bottom line of no systemic risks; deepen the reform of the science and technology system, and form a basic system to support comprehensive innovation...

Over the past decade, under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, my country has continuously improved its macroeconomic governance system, creating a good business environment, preventing market disorder and failure in a timely manner, and promoting effective qualitative improvement and reasonable quantitative growth in the economy. In 2023, the GDP exceeded 126 trillion yuan, with a growth rate ranking among the top major economies in the world, and its contribution to world economic growth has exceeded 30% for many years.

Walking into Tianjin Rongcheng United Steel Group Co., Ltd., hydrogen-powered heavy trucks are running back and forth, hundreds of acres of photovoltaic panels are neatly arranged, and data collection points densely distributed in the factory area transmit data to the smart center in real time. Not long ago, this place was rated as a "green development benchmark enterprise."

Eliminate backward production capacity, improve production efficiency, accelerate green and intelligent transformation... The steel industry has made drastic efforts to eliminate overcapacity, adjust structure, and accelerate the pace of transformation and upgrading. This is a microcosm of my country's deepening supply-side structural reform, changing development mode, optimizing economic structure, and transforming economic momentum.

Back in 2012, China’s economic growth rate fell below 8% for the first time since the new century, bidding farewell to double-digit growth. During the same period, deep-seated structural contradictions accumulated over a long period of time continued to emerge.

From judging that my country's economic development is in the "three-stage overlap" stage to proposing a new normal, from implementing the new development concept to promoting supply-side structural reform, and then to clearly shifting from a high-speed growth stage to a high-quality development stage... Our party makes timely and scientific judgments on the economic situation and constantly uses reform methods to solve problems in development.

In November 2015, General Secretary Xi Jinping first proposed "supply-side structural reform" at the 11th meeting of the Central Financial and Economic Leading Group, requiring that "while moderately expanding total demand, we should focus on strengthening supply-side structural reform, improving the quality and efficiency of the supply system, and enhancing the momentum for sustained economic growth."

Since then, supply-side structural reform has been like a main thread running through all aspects and stages of comprehensively deepening reform.

The 23rd meeting of the Central Leading Group for Comprehensively Deepening Reform pointed out that "supply-side structural reform is interconnected with comprehensively deepening reform and implementing the new development concept, and the core is institutional and mechanism innovation";

The 19th CPC National Congress clearly stated that “supply-side structural reform should be the main line to promote changes in the quality, efficiency and driving force of economic development and improve total factor productivity”;

The 20th CPC National Congress emphasized “organically combining the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform”;

The Party Central Committee assessed the situation and focused on resolving the structural contradictions and institutional and mechanism obstacles that hinder high-quality development. It formed a policy framework guided by the new development concept and with supply-side structural reform as the main line, promoted economic structural adjustment and the transformation of new and old growth drivers, and firmly embarked on a path of higher quality, more efficient and more sustainable development.

Deeply promote the "three cuts, one reduction and one supplement" to achieve optimal resource allocation, promote the transformation of traditional industries, the vigorous development of emerging industries, and the continued expansion of the service industry. From 2012 to 2023, the added value of high-tech manufacturing and equipment manufacturing industries will account for 9.4% and 28% of the added value of industrial enterprises above designated size, respectively, and the added value of the service industry will increase from 45.5% to 54.6%.

We will firmly grasp the strategic basis of expanding domestic demand, actively build a long-term mechanism for expanding domestic demand, promote a smoother domestic circulation and more efficient connection between domestic and foreign markets, and strive to give play to the basic role of consumption and the key role of investment. The contribution rate of domestic demand to economic growth will increase from 105.8% in 2012 to 111.4% in 2023.

The coordinated development of Beijing, Tianjin and Hebei has reached a new level, the Yangtze River Economic Belt has unfolded a high-quality development picture, and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area has accelerated... New urbanization and rural revitalization resonate at the same frequency, and major regional strategies are advancing in depth. China's permanent population urbanization rate has risen from 52.57% in 2012 to 66.16% in 2023, and high-quality development growth poles are rising rapidly.

We should plan according to the situation, act according to the situation and follow the trend, and the supply-side structural reform will continue to move towards "new".

General Secretary Xi Jinping profoundly pointed out that "the core of deepening supply-side structural reform is to promote industrial innovation through scientific and technological innovation, especially to give birth to new industries, new models, new momentum, and develop new quality productivity through disruptive technologies and cutting-edge technologies"; "deepen reforms in the science and technology system, education system, talent system, etc., and clear the bottlenecks that hinder the development of new quality productivity."

At present, anchored on "developing new quality productive forces in accordance with local conditions", all parts of the country continue to deepen supply-side structural reforms, accelerate the construction of new production relations that are compatible with new quality productive forces, constantly open up new areas and new tracks for development, and constantly create new momentum and new advantages for development.

Constructing a new open economic system to expand development space

Shanghai currently has more than 70,000 foreign-invested enterprises, with 6,017 new foreign-invested enterprises established in 2023 alone, a year-on-year increase of 38.3%. Actual use of foreign capital exceeded US$24 billion, a record high.

190 items were reduced to 27, the manufacturing items were cleared, and the service industry continued to expand its opening up... Today, the negative list for foreign investment access in the Shanghai Free Trade Pilot Zone is only two thin pages.

This is the starting point for building the "reform test field" of the free trade pilot zone. On September 29, 2013, China's first free trade pilot zone was established in Shanghai. Subsequently, the "Special Management Measures for Foreign Investment Access in China's Free Trade Pilot Zones" was released, which used a negative list to manage foreign investment in China for the first time, quickly igniting market enthusiasm.

The establishment of the first free trade pilot zone coincides with the upcoming Third Plenary Session of the 18th CPC Central Committee, becoming a vivid footnote to the comprehensive deepening of reform.

The plenary session held shortly afterwards made the "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reforms", and specifically proposed in the part of "accelerating the improvement of the modern market system" that "a unified market access system shall be implemented. On the basis of formulating a negative list, all types of market entities may enter the areas outside the list equally in accordance with the law. Explore the management model of pre-establishment national treatment plus a negative list for foreign investment."

Exploring new ways to comprehensively deepen reform and expand opening up under the new circumstances is the original intention of the Party Central Committee with Comrade Xi Jinping as the core to lead the construction of the free trade pilot zone.

Since the Third Plenary Session of the 18th CPC Central Committee, the Party Central Committee with Comrade Xi Jinping as its core has coordinated the domestic and international situations, insisted on promoting deepening reform through expanding opening-up and promoting expanding opening-up through deepening reform, and accelerated the formation of a pattern of opening-up on a larger scale, in wider areas and at a deeper level, constantly expanding new space for economic development.

"We must accelerate the transformation from a large trading nation to a strong trading nation" - today, my country has maintained its position as the largest country in goods trading for seven consecutive years, and its export share of the international market has remained the world's largest for 15 consecutive years. It is the main trading partner of more than 140 countries and regions, and ranks among the world's top countries in attracting foreign investment and making outward investments.

"China's door of opening up will not close, but will only open wider and wider" - Faced with the headwinds of globalization, my country has actively promoted bilateral, regional and multilateral cooperation, signed 22 free trade agreements with 29 countries and regions, and signed more than 230 cooperation documents on jointly building the "Belt and Road" with more than 150 countries and more than 30 international organizations. It has successfully held a series of international economic and trade events such as the China International Import Expo, the Canton Fair, and the China International Fair for Trade in Services.

Reform inevitably requires opening up, and opening up inevitably requires reform.

"Building a new open economy system with a higher level is a strategic measure for us to take the initiative to promote reform and development through opening up." In July 2023, General Secretary Xi Jinping made a series of arrangements at the second meeting of the Central Committee for Comprehensively Deepening Reforms, requiring that we focus on serving the construction of a new development pattern, focusing on institutional opening up, and deepening institutional and mechanism reforms in key areas of foreign exchanges and cooperation such as investment, trade, finance, and innovation.

We will step up efforts to attract and utilize foreign investment, implement the Foreign Investment Law, revise and expand the catalogue of industries that encourage foreign investment, and continue to reduce the negative list for foreign investment access;

The number of pilot free trade zones has been upgraded and expanded to 22, and a total of 349 pilot free trade zone system innovation achievements have been replicated and promoted at the national level;

Create a market-oriented, law-based, and internationalized first-class business environment, and strengthen institutional arrangements in terms of market transparency, intellectual property rights, and environmental protection standards;

Implement the Regional Comprehensive Economic Partnership Agreement at a high level, and actively connect with international high-standard economic and trade rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement...

Over the past decade, my country has been unswervingly building a new open economy system with a higher level, accelerating the institutional opening-up of rules, regulations, management and standards, promoting in-depth reform with high-level opening-up, and contributing Chinese wisdom and providing Chinese solutions to global economic openness and cooperation.

We will continue to deepen reform and expand opening up without stopping.

The blueprint for promoting Chinese-style modernization with high-quality development has been drawn up. We will adhere to the guidance of Xi Jinping's economic thoughts, firmly adhere to the direction of socialist market economic reform, and use the comprehensive deepening of economic system reform as a driving force. The giant ship "China" is moving forward steadily without fear of wind and rain, heading for wider waters and a brighter future.