Socialist Market Economy

Basicconcepts

Thesocialistmarketeconomyisintegratedwiththebasicsocialsystemofsocialism.Themarketplaysadecisiveroleintheallocationofresourcesunderthenationalmacro-control.

ThesocialistmarketeconomytheoryisaveryinnovativepartofDengXiaoping'stheoreticalsystem,anditisanamendmenttothetraditionaleconomictheory.Basedonthistheory,ChineseofficialshavesetthereformgoalofestablishingamarketeconomysystemandconductedunprecedentedexplorationsinthehistoryofChina'snationalconstruction.

Themarketeconomyisahighlysocializedandmarket-orientedcommodityeconomy.Itisaneconomyinwhichthemarketplaysadecisiveroleintheallocationofresources.

Themarketeconomyhasgeneralcharacteristicssuchasequality,legality,competitionandopenness.

Marketeconomyisaneffectiveformtoachieveoptimalallocation.

Themarketeconomycangiveplaytothesuperiorityofthesocialistsystem.

Thetransitionfromaplannedeconomytoamarketeconomy.

Foralongtime,bothpoliticiansandscholarshaveregardedthemarketeconomyasauniqueeconomicformofcapital,emphasizingthatthemarketeconomycanonlybeconnectedwiththeprivatepropertysystem,andthatthemarketeconomyandsocialismarefundamentalOpposition,thusdenyingthepossibilityoftheexistenceanddevelopmentofthemarketeconomyunderthesocialistsystem.ThegoalofChina'seconomicsystemreformistochooseamarketeconomy,whichisabreakthroughtothistraditionalconcept,andmakesChina'seconomicsystemmovefromaplannedeconomytoamarketeconomy.

First,todevelopproductivity,economicsystemreformistheonlywaytogo.

Todevelopproductivity,wemustcompletelyabandonthosesystemsthatmakeproductivitydevelopmentbecomeshacklesandconstraints,andcarryoutboldreformstoeffectivelypromoteproductivitydevelopment.TheliberationanddevelopmentofproductiveforcesisthefundamentalstartingpointthatDengXiaopingproposedtoengageinmarketeconomy.

DengXiaopingoncepointedout:"Thequestioniswhatmethodcanbeusedtodevelopsocialproductiveforcesmoreeffectively.Wehavebeenengagedinplannedeconomyinthepast,butyearsofpracticehaveshownthat,inasense,onlyengagedinplannedeconomyRestrainsthedevelopmentofproductiveforces."

Chinahascopiedthecentralplanningmodelforalongperiodoftime.ThecentralplanningmodelisthecentralplannedeconomicsystemguidedbytherelativelycompleteplannedeconomytheoryandplannedeconomicthinkingofRussianStalinism.Thesehavehadabroadandprofoundimpactonotherplannedeconomycountries,includingtheimpactonourcountry.Regardingplannedeconomyasthebasicfeatureofsocialism,equatingmarketeconomywithcapital,restrictingandnegatingtheroleofthemarket.Wecannotdenythatthetraditionalplannedeconomicsystem,inaperiodofsocialistconstructionwheretherulingpartyisprestigious,andthepeople’spoliticalenthusiasmisunprecedentedlyhigh,becauseitisconducivetotherapidmobilizationofsocialresourcesandfocusonkeyconstructionofkeydepartments.Ithasplayedanactiveroleinpromotingsocialistindustrializationandpromotingthedevelopmentofproductiveforces,whichhascausedtremendouschangesinChina'seconomy.However,withthepassageoftimeandchangesinconditions,thecompletionofourinitialsocialistconstructiontasks,thecontinuousexpansionofChina’seconomicscale,theincreasingeconomicties,andthehighlyunifieddecision-makingoftheplannedeconomicsystemthatexcludestheroleofthemarket,relyingonlyonadministrativeordersTheshortcomingsofallocatingresourcesandengaginginegalitarianismareincreasinglyexposed,whichultimatelyleadstostagnationofthenationaleconomy.

Intheplannedeconomysystem,ontheonehand,itisunifiedandruthless,restrictingtheinitiativeoflocalitiesandenterprises,andrestrictingthevitalityofenterprises;

Ontheotherhand,employeeseatenterprises."Bigpotofrice",the"bigpotofrice"forenterprisestoeatthecountry,theenthusiasmofmanagersandproducerscannotbebroughtintofullplay.Bothaspectsareconstraintsonproductivity.Togetridoftheshackles,reformsmustbeadoptedtofundamentallychangetheeconomicsystemthatrestrictsthedevelopmentofproductiveforcesandestablishaneconomicsystemfullofvitalityandvitalitytoliberateanddeveloptheproductiveforces.

Socialism

Anycountrycanandshouldchooseitsownmeansandwaysofdevelopmentaccordingtoitsactualdevelopmentofsocialproductivityandactualnationaleconomicdevelopment.Ifameansisgoodforself-development,useit.Butformanyyears,ourcountryhasalwaysregardedtheplannedeconomyassocialismandthemarketeconomyascapitalism.Inordertoupholdsocialism,wemustexcludethemarketeconomy.Thistraditionalunderstandingmainlycomesfromthecopyingofindividualwordsinthetheoryregardlessofconditionsandcircumstances.Forexample:MarxandEngelsonceimaginedthatthefuturesocialistsocietywillimplementaplannedeconomyandnolongerhaveacommodity-currencyrelationship.Whenwetakeitandapplyit,theabove-mentionedconceptwillinevitablyarise.However,aslongaswethinkcarefully,wecananalyzethatwhatMarxandEngelsputforwardisjustanidea.Theydidnotsaythatitisinevitable.Thefuturesocietytheyaretalkingaboutisnotoursocialismatthebeginningofthe21stcentury.BecauseMarxandEngelsareinvestigatingadevelopedcapitalistsociety,andbuildingafuturesocialistsocietyonthatbasis.Thisisabiggapwiththesocialistsocietywepracticetoday.Thebasisisdifferent,therealityisdifferent,andHowcanyoutakeitoverandcopyit.Besides,Marxismisconstantlydeveloping.Itmustcontinuouslyenrichanddevelopitselfinnewpractice.Onlythencanithavevitalityandbecalledscience.Weusedtocopyandcopyinsomeplaces,whichledtotheuseoftraditionalknowledgetorestrainourselves,coupledwiththeproliferationof"Left"thinking,notseekingtruthfromfacts,causingheavyeconomiclosses.Mistakesandsetbackshavepromptedourpartytoreflectonandre-understandthetraditionalplannedeconomicsystem,andbegintoexplorenewwaysofdevelopingthesocialisteconomyintheoryandpractice.

Asearlyas1979,DengXiaopingpointedout:"Itisdefinitelyincorrecttosaythatthemarketeconomyonlyexistsincapitalistsociety,andthatthereisonlyacapitalistmarketeconomy.Whycan'tsocialismengageinmarketeconomy?Itcannotbesaidtobecapitalism.Wearebasedonaplannedeconomyandcombinedwithamarketeconomy,butthisisasocialistmarketeconomy.”In1979,DengXiaopingproposedreformandopeningup,andasocialistmarketeconomywasinitiatedinChina,andthenationalpolicyhassincechanged.Inthespringof1992,DengXiaopingfurtherpointedoutinhissoutherntalks:"Alittlemoreplanningoralittlemoremarketisnottheessentialdifferencebetweensocialismandcapitalism.Aplannedeconomyisnotequaltosocialism,andcapitalismhasplans;amarketeconomyisnotequaltocapitalism.Thereisalsoamarketforsocialism.Themarketeconomyisneutral.Inforeigncountries,itisnamedcapital,butinChina,itisnamedsociety."

DengXiaoping’sthoughtsonthesocialistmarketeconomyfundamentallyliftedtherelationshipbetweensocialismandTheopposingideologicalconstraintsofthemarketeconomyhavegreatlypromotedChina'seconomicreformandhavebecomethebasictheoreticalbasisforourpartytoformulatereformdirectionsandgoals.

Specifically,DengXiaopingleadsthepeopletothesocialistmarketeconomyfrombreakingthroughideologicalconstraintstocorrectunderstanding,andthentoreformandpractice.Theprocessshouldbedividedintothreestages:

FirstStage:Breakingthroughtheunifiedplannedeconomyconceptthatcompletelyexcludesmarketregulation,formingtheideaof​​"plannedeconomyasthemainstayandmarketeconomyasthesupplement".

Thesecondstage:confirmthethesisthat"socialisteconomyisaplannedcommodityeconomybasedonpublicownership",breakthroughthelong-standingtraditionalconceptofantagonizingplannedeconomyandcommodityeconomy,andreinterprettheconnotationofplannedeconomy.

Thethirdstage:fundamentallygetridoftheideologicalconstraintsthatregardtheplannedeconomyandmarketeconomyasthebasicsocialsystem,andconfirmthereformgoalofestablishinga"socialistmarketeconomicsystem."

China’sreformpracticeaimedatestablishingasocialistmarketeconomicsystemhasproven,andwillfurtherprovethatinthefuture:themarketeconomyisneutral.Itiscapitalizedinforeigncountries,andsocialistinChina.Youcanalsoengageinamarketeconomy.

Basicfeatures

Asaneconomicmechanism,thebasicfeatureorinherentrequirementofmarketeconomyliesintheallocationofresourcesthroughtheautonomy,equality,competitivenessandeffectivenessofoperation.Itdoesnothaveinstitutionalattributes,andcanbecombinedwithdifferentsocialsystemstoshowdifferentproperties.Thesocialistmarketeconomy,thatis,themarketeconomyundersocialistconditions,emphasizesthedevelopmentofthemarketeconomyunderthesocialisteconomy,ratherthansayingthatthemarketeconomyitselfhasadistinctionbetweencapitalismandsocialism.

Themarketeconomyisaneconomicformdeterminedbythedevelopmentlevelofproductivityanddifferentinterestrelationships.Ithasitsownregulations,whicharethecommonalityorgeneralityofthemarketeconomyunderdifferentsocialandeconomicsystems;However,differentsocialsystemconditionsmakethedevelopmentofmarketeconomyhavedifferentcharacteristics,whichismanifestedintheparticularityofmarketeconomyunderdifferentsocialconditions.

Thedevelopmentofamarketeconomyundersocialistconditionswillinevitablyberestrictedandaffectedbythebasicsocialisteconomicsystem,sothatthesocialistmarketeconomypresentsuniquebasiccharacteristics.

Takingpublicownershipasthemainbody

ComradeDengXiaopingoncesaid:"OnlysocialismcansaveChina.ThisisthepersonalexperienceoftheChinesepeoplefromtheMayFourthMovementtothepresent60years."Theunshakablehistoricalconclusiondrawn","Thesocialistrevolutionhasgreatlyreducedtheeconomicdevelopmentgapbetweenourcountryandthedevelopedcapitalistcountries."Thecoreofthesocialistsystemliesinthepublicownershipofthemeansofproduction,andthecombinationofsocialismandmarketeconomyisactuallyacombinationofpublicownershipandmarketeconomy.Adheringtothedominantpositionofpublicownershipisthefundamentalguaranteeforthedirectionofsocialism.Whoeverownsthemeansofproductioncancontrolthewealthandproduceforwhosebenefit.Engelsbelievesthat"ifwealthincludesthedominationofpeople,thenitmainlydependsonandalmostcompletelydominatespeoplethroughthedominationofthings."Theownershipofthemeansofproductionisanimportantbasisforsocialproductionrelations.Ifpublicownershipisdownplayedintheoryandthefoundationofpublicownershipisnotadheredtoinpractice,socialismwillbecomeemptytalk.Ofcourse,atthisstage,"publicownershipasthemainbody"shouldabandonthenotionthatbigger,morepublic,andpurer,thebetter.Thepublicownershipeconomyincludesnotonlythestate-ownedeconomyandcollectiveeconomy,butalsothepubliccomponentsinthemixedeconomy,etc.;thedominantpositionofthepublicownershipeconomymustnotonlybereflectedinquantity,butmoreimportantly,itmustbecompetitive,controllable,andinfluentialinquality.Bringmotivation.

Underthepremisethatpublicownershipisthemainstay,thenon-publicownershipeconomyisalsoanimportantpartofthesocialistmarketeconomy.Intheprimarystageofsocialism,thelevelofproductivitydevelopmentislowandthedevelopmentisveryuneven,whichobjectivelyrequiresthecommondevelopmentofmultipleownershipeconomies.Moreover,thenon-publicownershipeconomyhasanaturalconnectionwiththemarketeconomy,suchasclearpropertyrights,flexiblemechanisms,andstrongadaptability,whichcanplayanimportantroleineconomicdevelopment.Therefore,itisnecessarytoencourage,supportandguidethenon-publicownershipeconomytohavegreaterandhealthierdevelopmentsothatthenon-publicownershipeconomycanplayagreaterroleinsocialistconstruction.

Guidebyplan

Thetraditionalconceptbelievesthatsocialismispublicownershipandplannedeconomy;capitalismisprivateownershipandmarketeconomy.Therefore,from1956to1978,mycountryhasalwaysregardednon-publicownershipandmarketeconomyasdissidentforcestoostracizethem.ThisisamisunderstandingofMarxism.Asamatteroffact,mycountryhasachievedremarkableachievementsintheconstructionofasocialistmarketeconomyinjustover20years.Overthepast20years,theaveragegrowthrateofmycountry'seconomyis9.5%,whichishigherthantheaveragegrowthrateoftheworldeconomyandalsohigherthanthegrowthrateofdevelopedcountries.Itisoneofthefastest-growingcountriesintheworld.

Plansandmarketshavetheirownadvantagesandstrengths,butalsotheirownlimitationsandweaknesses.Theadvantagesofplannedadjustmentaremainlyinthemacrofield,whichcaneffectivelycontrolthetotaleconomicvolume,butitisdifficulttoplayaneffectiveroleinregulatingmicroeconomicactivities;theadvantagesofmarketadjustmentaremainlyinthemicrofield,whichcaneffectivelystimulatetheeconomicentities.Energetic,butitseemspowerlesstoadjustthebalanceofeconomicaggregates,theadjustmentofmacroeconomicstructure,ecologicalbalanceandenvironmentalprotection.

Marxisteconomicshasdefinitelyprovedthatthefundamentalmeanstoovercometheblindnessandanarchyofthemarketeconomyisplanning,notmacro-controlthatcannotbecomparedwithplanning.Aslongassocialismdoesnotpursueablindanddisorderlymarketeconomy,itcannotavoidplanning.Aslongastheplanisabandoned,nomatterhowdevelopedthemarketsystemisandhowsoundthemarketmechanismis,themarketeconomywillalwaysbeincapableofblindnessandanarchy,becauseithasonlyan"invisiblehand."Amarketeconomythathasbrokenawayfromtheplanisnotqualifiedtobecalledasocialistmarketeconomy.

Inthedevelopmentofmycountry'ssocialistmarketeconomy,themarketandplaneachhavetheirobjectivestatusandscopeofaction;theformerisfundamental,andthelatterisoverallanddirectional.Thereasonablerelationshipbetweenthetwothatmustoccurundersocialistconditionsismainlyreflectedinthefollowingaspects:(l)Themarketandtheplancomplementeachotherandrelyoneachother;(2)Themarketisguidedbytheplan,andtheplanisguidedbythelawofvalue.Asthebasis,thetwopenetrateeachother;(3)Microeconomicactivitiesrelyonthemarket,andmacroeconomicactivitiesrelyonplans.Theabove-mentionedrelationshipsortypesofrelationshipsareneithermutuallyantagonisticnornegative,noraretheysuccessive.Theserelationshipsconstitutetheconnotationoftherelationshipbetweenthemarketandtheplan.Therefore,thesocialistmarketeconomyshouldorganicallyintegratethemacroplanwiththemarketmechanismundertheguidanceofthemacroplan,sothattheimmediateandpartialinterestsoftheenterprisearecombinedwiththelong-termandoverallinterestsofthecountry,andtheformershouldbeobeyed.Inthelatter.Thekindthatbelievesthatthemarketmechanismisthemosteffectivewayofresourceallocation.Aslongasthemarketmechanismisfullyutilized,thenationaleconomycanachievesustainedandrapiddevelopment.Evenifaplanisrequired,itisonlyallowedwhenthemarketis"failed."Theideaof​​playingacomplementaryrole,therebyputtingthemarketabovetheplan,fundamentallydeniestheleadingroleoftheplaninthedevelopmentofthenationaleconomy,andobliteratestheessentialdifferencebetweenthesocialistmarketeconomyandthecapitalistmarketeconomy.

Toachievecommonprosperityasthegoal

Thecapitalistmarketeconomyisintegratedwiththebasiccapitalistsystem,whichwillinevitablyleadtoanarchyofproduction,polarization,insufficientdemand,andcycleSexualeconomiccrisis.Unemploymentisaninevitablecompanionandnecessaryconditionofthecapitalistmarketeconomy.

Achievingthecommonprosperityofallpeopleistheessenceandthemostbasicpursuitofsocialism,andthereforeitmustalsobethebasicfeatureofthesocialistmarketeconomy.ComradeDengXiaopingproposed"liberatetheproductiveforces,developtheproductiveforces,eliminateexploitation,eliminatepolarization,andultimatelyachievecommonprosperity.""Finallyachievecommonprosperity",use"ultimate"toexplainthetimeperiodandpurposeof"commonprosperity".

Themarketeconomycanpromotethefasterdevelopmentofproductivity,isconducivetoincreasewealth,andisconducivetocommonprosperity.Atthesametime,itwillinevitablyleadtopolarization,ratherthancommonprosperity.Sincetheimplementationofthemarketeconomyinourcountry,thegapbetweentherichandthepoorinsocietyhaswidened,sothatfromacertainculturalperspective,wecandrawtheconclusionthatthefunctionsandeffectsofmycountry'smarketeconomyarestillsimilartothoseofthemarketeconomyundercapitalistconditions..Strictlyandthoroughly,China'ssocialistmarketeconomymusthavetheinherentcharacteristicsofcommonprosperityandbeabletorealizeit.Achievingcommonprosperityisthekeytoourcountry'smarketeconomytrulybecomingasocialistmarketeconomy,anditisalsothekeytodistinguishingitfromthecapitalistmarketeconomy.

Therearetwokindsofthinkingforrealizingmycountry’smarketeconomyintoamarketeconomythatachievescommonprosperity:oneistousesocialistprinciplestotransformthemarketeconomyitself,suchasstrengtheningandexpandingthepublicownershipeconomy,andpreventingthespreadofprivatizationandprivateownership.;Activatethemarketmechanismandplanningmechanismoftheentirenationaleconomytocoordinatethetwoandpursuethefundamentalinterestsofallmembersofsociety.Thesecondistotakemeasuresoutsidethemarketeconomy,suchastheuseofasoundtaxationsystemandsocialsecuritysystem,toreduceandreducethegapbetweentherichandthepoor,andtopreventpolarization.

Inadditiontotheabove-mentionedthinking,ourcountryisnowacountrywithasocialistsystem,andfarmersinthisbigfamilyaccountforthevastmajority.Therefore,mycountry'ssocialistmarketeconomymustpayspecialattentiontofarmers,asfarmersarefarlargerthananyothermarketentities.Thefocus,difficulty,andcoreofdevelopingamarketeconomytomakethepeopleprosperoustogetheristomakefarmersgraduallyricher.

Startingfromtherealityofourcountry,thefundamentalwayoutforfarmerstobecomeprosperousthroughthemarketeconomyliesin:persistindevelopingtownshipandvillageenterprises,andturnthenaturaleconomyintoamarketeconomy;Thescatteredpeasants,likeseawater,areconnectedtotheentirenationaleconomy.Onlyinthiswaycanwetrulyachievethegoalofcommonprosperity.

Adheretotheleadershipofthepartyasapoliticalguarantee

ThehighestgoaloftheCommunistPartyofChinaistorealizeacommunistsociety,andcurrentlyitistoleadtheconstructionofsocialismwithChinesecharacteristics.Thepeopleofthewholecountryarenowstrivingtoachievethegoalofbuildingawell-offsocietyinanall-roundwaywitheconomicconstructionasthecenter.Leadingeconomicconstructionisthecentraltaskoftheparty.

DevelopingamarketeconomyundersocialistconditionsisagreatinitiativeoftheChineseCommunists.Theimportantdifferencebetweenthesocialistmarketeconomyandthegeneralmarketeconomyliesinthecombinationofthemarketmechanismandthesuperiorityofthesocialistsystem.DengXiaopingsaid:"Whereisthesuperiorityofthesocialistmarketeconomy?Therearefourperseverances",thatis,adheretothesocialistroad,adheretothepeople'sdemocraticdictatorship,adheretotheparty'sleadership,andadheretoMarxism.ComradeDengXiaopingattributedthesuperiorityofthesocialistmarketeconomytothe"fourpersistence"andregardeditasa"completesetofequipment."Becausethis"completesetofequipment"isanorganicwholethatincludestheeconomicsystem,politicalsystem,anddominantideology,embodiestheessentialconnotationofeconomicrelations,anddefinesthesocialistdirectionofthismarketeconomy,andtheparty’sleadershipispreciselythe"fourpersistences"."Theconcentratedperformance.IncontemporaryChina,onlytheCommunistPartyofChinacan,inaccordancewiththeprinciplethatismostconducivetothedevelopmentofproductionandcommonprosperity,continuouslyanalyzenewsituationsandsolvenewproblems,coordinatetheinterestsofallparties,correctlyhandlethecontradictionsthatappearatthisstage,andeffectivelyorganizeandleadthecountry.Thepeopleofallethnicgroupsjointlycarriedoutmodernizationandpromotedthedevelopmentofthesocialistmarketeconomy.

Ofcourse,underthenewhistoricalconditions,theparty'sleadershipineconomicconstructionmusthaveanewposition.Toimprovethenewsystem,newmechanismandnewwayofleadingthemarketeconomy,itisnecessarytofollowobjectiveeconomiclaws,adheretodemocraticprinciples,givefullplaytotheenthusiasmofgovernmentdepartments,economicunits,andthegeneralpublic,andimplementeconomicbenefitswithinthescopeoftheConstitutionandlaws.Leadershipresponsibilityforconstruction.

Cultivatingmarketentities

Themostbasicentities

Toestablishasocialistmarketeconomysystemandmaintainthesustained,stableandhealthydevelopmentofthenationaleconomy,thekeyistoreshapesocialismThemainbodyofthemarketeconomy.Whatisthemostfundamentalsubjectofamarketeconomy?Thatistheenterprise.Undertheconditionsofamarketeconomy,enterprisesarethemostbasicandimportantsubjectofmarketactivitiesandthemicro-foundationfortheoperationofmarketmechanisms.Enterprisesinamarketeconomymustfollowtherulesofthemarketeconomy,operateindependently,takeresponsibilityfortheirownprofitsandlosses,directlyengageinproduction,circulation,andservicebusinessactivities,pursuemaximumbenefits,andpaytaxesinaccordancewiththelaw.

Whatarethecharacteristicsofenterprisesasmarketplayers?

1.Thedirectpurposeofacompanyprovidingproductsorservicesistopursueprofit.

2.Enterprisesmustconductindependentaccountingandberesponsiblefortheirownprofitsandlosses.

3.Enterpriseshaveautonomy.

4.Enterprisesaretaxpayers.

Thisisthecharacteristicofanenterpriseinamarketeconomy,anditisalsoarequirementofthemarketeconomyforitsmainbody.Therefore,undertheconditionsofamarketeconomy,itisnecessarytocultivatemarketentitiessuitableforthedevelopmentofthesocialistmarketeconomy,makethemtheleadingforceinthedevelopmentofproductivityandscientificandtechnologicalprogress,andbecomeanimportantpillarandbackboneforceinthemodernizationdrive,sothattheywillberejuvenatedandvigorous.Theeconomicstrengthandpotentialwillbebroughtintofullplay,andtheeconomicandsocialfunctionsofenterprisesinthemarketeconomywillbebetterbroughtintoplay.Itseconomicfunctionistotransformthepotentialproductivityoftheenterpriseintoactualproductivity,continuouslycreatemoresocialwealth,promotethecontinuousexpansionofsocialproductionscale,improveproductionefficiency,promotetheprogressofsocialproductivity,improvethequalityofenterpriseemployees,andcultivatespecializedtechnologyTalentspromotethedevelopmentofsocialproductiveforces.Theso-calledsocialfunctionmeansthatanenterprisecansatisfythepeople’sdemandforproductsandservices,createemploymentopportunities,providewealthforthecountry,promotethedevelopmentofothersocialandpublicundertakings,andbeabletocontributetothedevelopmentofthenationaleconomyandtheimprovementofpeople’smaterialandculturallivingstandards.Playamajorrole.

EnterpriseSystem

Theenterprisesystemreferstotheenterpriseorganizationandmanagementsystembasedandcoreofthepropertyrightsystem.Inthemodernmarketeconomy,themodernenterprisesystemisalegallyregulatedenterprisesystemthatmeetstherequirementsofthemarketeconomyandgenerallyadoptsthecorporatesystem.Thecompanysystemadaptstotherequirementsofthemarketeconomybetterthanotherformsofcorporateorganization.Theestablishmentofamoderncorporatesystemwithacorporatesystemisanimportantlinkintheestablishmentofasocialistmarketeconomicsystem.

Formationprocess

Theestablishmentofmycountry'ssocialistmarketeconomicsystemhasgonethrougharelativelylongandtortuousprocess.Thisprocessbeganinthemid-1950swiththeexplorationofthefirstgenerationofthecentralleadershipgroupwithComradeMaoZedongatthecore.

(1)1949~1978:thebuddingperiodofeconomicsystemreform

HowtobuildsocialisminChinainOctober1949whenthePeople’sRepublicofChinawasestablished,intermsofthechoiceofeconomicsystem,Inthebeginning,ImainlylearnedandborrowedfromtheSovietmodel.Thecompletionofthe"threemajortransformations"attheendof1956markedtheformationofahighlycentralizedplannedeconomicsystem.ItshouldbesaidthatfromthefoundingofthePeople’sRepublicofChinatotheperiodofnationaleconomicrecovery,thehighlycentralizedplannedeconomicsystemplayedapositiverole,especiallyforthecompletionofthe"FirstFive-YearPlan".

However,thisover-centralizedeconomicsystemhasseriousdrawbacks.Thus,sincethemid-1950s,thetheoreticalcircleshaveexploredhowtochangethissystem.Inparticular,itneedstobepointedoutthatMaoZedonghaslongbeenawareoftheshortcomingsofthissystem.HeproposedtolearnfromtheexperienceandlessonsoftheSovietUnionandexploreapaththatsuitsthenationalconditions.FocusingonthetopicofhowtolearnfromtheSovietUnionandestablishaChinese-styleplannedeconomicsystem,MaoZedongandothersputforwardandseriouslyconsideredfivemajorrelationships:therelationshipbetweenthecentralandlocalgovernments,therelationshipbetweenthegovernmentandproductionunits,andtherelationshipbetweenproductionunitsandproducers.Therelationship,therelationshipbetweenthepublicandnon-publiceconomies,andtherelationshipbetweenplanningandthemarket.Itsspiritualessenceisthatlocalities,productionunits,andproducersshouldhaveacertaindegreeofeconomicautonomyrelativetothecentralgovernment,government,andproductionunits.Thenon-publiceconomyandfreemarketshouldallowthemtoexistwithinacertainrange.Thisexplorationisofgreatsignificance,butunfortunately,duetohistoricalconditions,thisexplorationhasnotbeenabletocontinueintherightdirection.Butwecannotdenythetheoreticalvalueandpracticalsignificanceofthisexploration.Itcanbesaidthatthisistheembryonicstageoftheexplorationanddevelopmentofthesocialistmarketeconomy,andthesourceandstartingpointofthetheoryofthesocialistmarketeconomy.

Intheearlytheoreticalresearch,mycountry'scontemporaryeconomistGuZhunwrote"OntheLawofCommodityProductionandValueundertheSocialistSystem"in1957,andputforwardthesocialistmarketeconomytheoryforthefirsttimeinmycountry.AfterGuZhunreturnedtotheInstituteofEconomicsoftheChineseAcademyofSciencesasaresearcherinMay1962,heonceagaincalledfortheestablishmentoftheprinciplesofsocialistmarketeconomy.

(2)1978~1992:Theperiodofexplorationandestablishmentofeconomicsystemreformgoals

Afterthesmashingofthe"GangofFour",fromthegovernmenttothetheoreticalcircles,quitealotofpeoplearebreakingthroughRigidtraditionalconceptsreflectonChina'sdevelopmentpath.Theoutstandingcontributionofthisperiodwastoestablishthegoalofestablishingasocialistmarketeconomicsystem,andthisgoalwasformedinrepeatedandsharpideologicalconfrontations.Specifically,itisdividedintothefollowingthreestages:

From1.1978to1984,thereformideaof​​"plannedeconomyasthemainstayandmarketregulationasthesupplement"wasformed.Afterthe"CulturalRevolution",theissueofreformwasfirstrevisitedatthe"StateCouncilRetreat"fromJulytoSeptember1978.Withthepromotionofallsectorsofsociety,theThirdPlenarySessionoftheEleventhCentralCommitteeheldonDecember18,1978proposedto"actinaccordancewiththelawsofeconomicsandpayattentiontotheroleofthelawsofvalue."Butwhatisthedirectionofreform?Atthattime,mostpeopleinthepartyunderstoodthatunderthepremiseofimplementingaplannedeconomy,somemarketregulationmeasuresshouldbeaddedtomeettheneedsofthepeopleinvariousaspectsoflife.Asaresult,theFourthSessionoftheFifthNationalPeople'sCongressheldinNovember1981proposedthatthegoalofeconomicsystemreformwas"plannedeconomyasthemainstayandmarketregulationasthesupplement."InSeptember1982,theTwelfthNationalCongressoftheCommunistPartyofChinawassuccessfullyheld.Theconferenceagainemphasized:"Thecorrectimplementationoftheprincipleofplannedeconomyasthemainstayandmarketregulationasthesupplementisafundamentalissueineconomicsystemreform."Objectivelyspeaking,thisreformmodelItisahistoricprogress,becauseunderthepremiseofadheringtotheplannedeconomicsystem,theroleofmarketregulationhasbeenrecognized.However,itdidnotbreakthroughtheframeworkoftheplannedeconomy,emphasizingthatmarketregulationcanonlybelimitedtothescopepermittedbytheplan.

2.From1984to1988,thereformgoalwasdeterminedtobe"aplannedcommodityeconomybasedonpublicownership."OnOctober20,1984,theThirdPlenarySessionoftheTwelfthCentralCommitteepassedthe"DecisionoftheCentralCommitteeoftheCommunistPartyofChinaonEconomicSystemReform",emphasizingthatthesocialisteconomyisa"plannedcommodityeconomybasedonpublicownership."Thisisamajorbreakthroughinthereformgoal.Whyistheresuchabigbreakthroughinashortperiodoftime?Thereasonsarethat,firstofall,thenewsituationsandnewquestionsbroughtaboutbyreformpracticeurgentlyrequiretheoreticalanswers.Afterthereformandopeningup,thelivesoffarmershavebeengreatlyimproved,andalargenumberofindividualeconomieshavebeencreated,andprivateenterprisesrunbyhiredworkershavebeendeveloped.

Forawhile,somepeoplethinkthathiringisexploitation,peopleareconfusedintheirthinking,andvariousopinionsareinconsistent.Thesenewproblemsneedtobeexplainedtheoreticallyandclarified.Second,thetheoreticalcircleplayedanimportantroleinpromotingtheformationofthisreformgoal.InSeptember1984,a"SeminarforYoungandMiddle-agedEconomicScientists"washeldinMoganMountain,DeqingCounty,ZhejiangProvince.Severaltheoreticalviewpointsandcountermeasuresputforwardattheconferenceplayedanimportantroleinpromotingmarketreformbythecentralgovernment.SomeviewpointsenteredCentraldecision-making.

Inthiscontext,theThirdPlenarySessionoftheTwelfthCentralCommitteebrokethroughtheunderstandingthatthecommodityeconomyisopposedtothesocialistplannedeconomyandestablishedtherightdirectionforChina'sreform.DengXiaopingcalledit"apoliticaleconomythatcombinesthebasicprinciplesofMarxismwiththepracticeofChinesesocialism."

3.From1989to1992,thegoalofthesocialistmarketeconomysystemwasfinallyestablished.Atthetimewhentheeconomicsystemreformachievedinitialsuccess,inthelate1980sandearly1990s,twomajorhistoricaleventsoccurredathomeandabroad:onewasthedrasticchangesintheSovietUnionandEasternEurope;theotherwasthedomesticpoliticalturmoilinthelate1980s.Atthistime,peoplewhowereoriginallydissatisfiedwithreformandopeningupbegantocriticizereformandopeningup,andthefocuswasontherelationshipbetweenthemarketandplanning.Atthiscriticaljuncture,DengXiaopingkeenlygraspedthecruxoftheproblem,thatis,developmentisthelastword.Hiscontinuousspeechesatcriticalmomentsplayedakeyroleinreversingthesituation.Inthiscontext,the14thNationalCongressoftheCommunistPartyofChinaheldinOctober1992clearlystatedthatthegoalofChina'seconomicsystemreformwastoestablishasocialistmarketeconomicsystem,whichindicatedthattheentirepartyhadreachedaconsensusonthegoalofeconomicsystemreform.

(3)1993~2002:Theestablishmentofthesocialistmarketeconomysystem

Inthisperiod,twomajorproblemsweremainlysolved:

1.SocialismTheproblemofbuildingthebasicframeworkofthemarketeconomysystem.InNovember1993,theThirdPlenarySessionofthe14thCentralCommitteeoftheCommunistPartyofChinawasheld.TheGeneralAssemblypassedthe"DecisionoftheCentralCommitteeoftheCommunistPartyofChinaonSeveralIssuesConcerningtheEstablishmentofaSocialistMarketEconomicSystem",whichoutlinedthebasicframeworkofthesocialistmarketeconomicsystemandbelievedthatthesocialistmarketeconomyThebasicframeworkofthesystemconsistsofthe"fivepillars"ofmarketentities,marketsystems,macro-controlsystems,incomedistributionsystems,andsocialsecuritysystems,andhasformulatedanoverallimplementationplan.

2.Thecombinationofsocialismandmarketeconomy.InDecember1994,GeneralSecretaryJiangZeminemphasizedwheninspectingworkinTianjin:"Weareengagedinasocialistmarketeconomy.Theword'socialism'isindispensable.Thisisnotsuperfluous,itisnotsuperfluous,butonthecontrary.Thisisthefinishingtouch.Theso-calledfinishingtouchistoclarifythenatureofourmarketeconomy."Thisfurtherclarifiesthe"Socialistmarketeconomicsystemisintegratedwiththebasicsocialistsystem"putforwardbytheThirdPlenarySessionofthe14thCentralCommittee."thesis.Andthiscombinationmustfirstbecombinedwiththebasicsocialisteconomicsystem.Whatisthebasicsocialisteconomicsystem?Thereportofthe15thNationalCongressoftheCommunistPartyofmycountrypointedout:“Publicownershipasthemainbodyandthecommondevelopmentofmultipleownershipsystemsisabasiceconomicsystemintheprimarystageofsocialisminourcountry.”Fromtheperspectiveofthebasiceconomicsystem,thenon-publicownershipeconomyitself,suchasindividual,privateownership,etc.Itisgeneratedfromthemarket,andpublicownership,especiallystateownership,hastheproblemofhowtointegrateitwiththemarketeconomy.Becausestate-ownedenterpriseshavenotbeenqualifiedmarketentitiesthatoperateindependentlyandareresponsiblefortheirownprofitsandlossesforalongtime,theymustfindacombinationofpublicownershipandmarketeconomy.Afterexploration,theThirdPlenarySessionofthe14thCentralCommitteefoundthedirectionofreformin1993andclearlystated:"Theestablishmentofamodernenterprisesystemisaninevitablerequirementforthedevelopmentofsocializedproductionandmarketeconomy,andisthedirectionofthereformofmycountry'sstate-ownedenterprises."Theshareholdingsystemisanimportantorganizationalformofthemodernenterprisesystem.Asaresult,theThirdPlenarySessionofthe16thCentralCommitteeoftheCommunistPartyofChinain2003clearlystated:"Vigorouslydevelopamixed-ownershipeconomyinwhichstate-ownedcapital,collectivecapital,andnon-publiccapitalparticipateinshares,realizethediversificationofinvestmententities,andmakeshareholdingthemainformofpublicownership."State-ownedenterprisesThepracticeofreformhasprovedthatadvancingtheshareholdingreformofpublic-ownedenterprisescanenablepublic-ownedenterprisestoadapttothedevelopmentofthemarketeconomyandbecomemarketentitiesthatoperateindependentlyandareresponsiblefortheirownprofitsandlosses.Itcanbeseenthatthroughtheimplementationoftheshareholdingsystem,mycountry'spublicownership,especiallystate-ownedenterprises,hasfoundaformandwaytointegratewiththemarketeconomy.ThisbrokeMargaretThatcher’sprediction:"Socialismandmarketeconomycannotbecompatible,andsocialismcannotengageinmarketeconomy.Toengageinmarketeconomy,capitalismandprivatizationmustbeimplemented."

(4)2003topresent:theperiodofperfectingthesocialistmarketeconomicsystem

The16thNationalCongressoftheCommunistPartyofChinaannouncedinOctober2002thatmycountry'ssocialistmarketeconomicsystemwasinitiallyestablished.TheThirdPlenarySessionofthe16thCentralCommitteeoftheCommunistPartyofChina,heldin2003,passedthe"DecisionoftheCentralCommitteeoftheCommunistPartyofChinaonSeveralIssuesConcerningtheImprovementoftheSocialistMarketEconomicSystem",markingthatChina'seconomicsystemreformhasenteredaneweraofimprovingthesocialistmarketeconomicsystem.Howcanweimprovethesocialistmarketeconomicsystem?Theansweristodeepenreformsacrosstheboard.Thecurrentreformsarereformsstandingatanewhistoricalstartingpoint.Itssigns:

First,thereformofeconomicdevelopmentintoanewnormal.Thesecondistheperiodoftacklingtoughissuesandthereformofthedeepwaterarea.Thecurrentissuesthatneedtoberesolvedinthecomprehensivedeepeningofreformsarefarmoresensitiveandcomplexthaneverbefore.Oldissuesandnewissuesareintertwined,anddomesticandinternationalfactorsaffecteachother.Thisrequires"crawlinghardbones"and"riskingonthebeach."Thethirdisreformatanewlevelofdevelopment.Chinaisalreadytheworld'ssecondlargesteconomyandiscurrentlyfacinga"risingdilemma."

AsfarasSino-USrelationsareconcerned,thecoreoftheproblemliesinavoidingthe"Thucydidestrap."Tothisend,PresidentXiJinpingpointedoutinanexclusiveinterviewwithTheWorldPost,asub-paperoftheU.S.HuffingtonPost,thatweshouldallworkhardtoavoidfallingintothe"Thucydidestrap."ApplicabletoChina,Chinadoesnothavethegenestoimplementsuchactions.Atpresent,atanewhistoricalstartingpoint,howtotransformeconomicadvantagesintostrategicandpoliticaladvantagesandeffectivelymaintainwin-wincooperationwithmajorpowersisamajorchallenge.

Inthepast10yearssincethereformoftheeconomicsystementeredaperiodofperfection,mycountry'seconomyhasinitiallyembarkedonthetrackofscientificdevelopment.Inthe"DecisionoftheCentralCommitteeoftheCommunistPartyofChinaonSeveralMajorIssuesConcerningtheImprovementoftheSocialistMarketEconomicSystem"adoptedbytheThirdPlenarySessionofthe16thCentralCommitteeoftheCommunistPartyofChina,thescientificdevelopmentconceptwasclearlyputforwardforthefirsttime,andthe"EleventhFive-YearPlan"wasformulatedasascientificdevelopmentconcept.Inthefirstfive-yearplanofChina,fromtheperspectiveofthecompletionrateofthemainobjectivesandindicatorsoftheplan,theeconomicdevelopmentmodehasbeeninitiallyincorporatedintothescientificdevelopmenttrack.Thisismainlyduetothecontinuousprogressofmacro-reformsinaseriesofimportantareasandkeylinks.Inparticular,thegovernment,asthemainbodyofmacro-economicregulation,hasmademajorbreakthroughsinitsownreforms.Sincethe18thNationalCongressoftheCommunistPartyofChina,inthenewleadershipcollective’snationalgovernancestrategy,thethinkingoneconomicsystemreformhasbecomeclearerandclearer.Intheoverallstrategyofbuildingamoderatelyprosperoussociety,comprehensivelydeepeningreforms,comprehensivelyadvancingtheruleoflaw,andcomprehensivelyadministeringthepartystrictly,comprehensivelydeepeningreformsisafundamentaldrivingforceforachievingthegoalofbuildingamoderatelyprosperoussocietyinanall-roundway,andthefocusofcomprehensivelydeepeningreformsistheeconomicsystem.Thecoreissueofreformandeconomicsystemreformistohandletherelationshipbetweenthegovernmentandthemarket.TheThirdPlenarySessionofthe18thCentralCommitteepointedoutthat"makethemarketplayadecisiveroleintheallocationofresourcesandbetterplaytheroleofthegovernment."Thisprogressivelogicalrelationship,Veryclearlyclarifiedtheoverallideaof​​perfectingChina'ssocialistmarketeconomicsystematanewhistoricalstartingpoint.

Governmentfunctions

Socialistmacroeconomicregulationiscarriedoutbythestate.Therearetwomainmethodsofmacroeconomicregulation:oneisdirectmacroeconomicregulation,thatis,thestateusesadministrativemeanstodirectlycoordinateandcontroltheeconomicbehaviorofmicro-subjects;theotherisindirectmacroeconomicregulation,thatis,thestatemainlyuseseconomicmeanstoinfluencemarketmechanisms.Andguidetheeconomicbehaviorofenterprisestoachievethegoalofmacroeconomicregulationandcontrol.Undertheplannedeconomysystem,thestatemainlyusedmandatoryplansandadministrativemeasurestodirectlyregulateandcontrolenterprises,andenterprisesbecameanappendageofgovernmentagencies.Thiskindofmacro-controlmethodisseriouslydeviatedfromthemarketeconomyandmustbereformedandtransformed:oneistochangefromdirectmanagementtoindirectmanagement;thesecondistochangefrommicro-managementtothemainmacro-management;thethirdistochangefromprojectmanagementTheexaminationandapproval,thedivisionofmoneyandmaterialshavebeentransformedintothemainuseofeconomicmeanstodoagoodjobinplanning,coordination,supervisionandservice.

Fromtheabovesummary,itcanbeclearlyseenthatinordertoachievetheabove-mentionedchanges,thegovernmentmustfirstchangethefunctionsofthegovernment.Undertheconditionsofthesocialistmarketeconomy,thepeople'scongressesatalllevelsaretheownersofstate-ownedassets,thepeople'sgovernmentsarethesocialadministrators,andthepeople'scongressesandthepeople'sgovernmentsatalllevelstogetherconstitutethemacroeconomicregulators.Specifically,therearethreemainaspectstothetransformationofthegovernment'sfunctions:

First,toachievetheseparationofgovernmentandenterprise.Thatis,theresponsibilitiesofthegovernmentandenterprisesareseparated.Thegovernmentonlyexercisesitsadministrativefunctionstocreateadevelopmentenvironmentoffaircompetitionforthesocialistmarketeconomy.Ascommodityproducersandoperators,allenterpriseshaveindependentproductionandmanagementrights.Thisisthekeytothetransformationofgovernmentfunctions.

Secondly,separatethegovernment’ssocialmanagementfunctionsfromthefunctionsofstate-ownedassetowners.Sincethepeople’scongressesatalllevelsdirectlyrepresentthefundamentalinterestsoftheentirepeople,theyarethenaturalboardofdirectorsofstate-ownedenterprisesandcollectively-ownedenterprises.Asthemanagementagencyofstate-ownedassets,theNationalPeople’sCongresshasanaturallegalpositiontocarryoutthebasicmanagementofstate-ownedassets,supervisethepreservationandappreciationofstate-ownedassets,andformulateandimplementlawsandregulationsontheoperationandmanagementofstate-ownedassets.Dividendsfrompublic-ownedenterprisesatthetimeoftheyearareanimportantsteptowardscommonprosperityinthesocialistmarketeconomystage,anditisalsoakeymeasuretoreflectthesuperiorityofsocialism.

Thirdly,inaccordancewiththeprinciplesofsimplification,unity,andefficiency,governmentinstitutionsshouldbereformedtomeettheneedforthegradualtransferofgovernmentstate-ownedassetsandmacroeconomicregulationandcontrolpowertopeople'scongressesatalllevels,whichareseparatedfromgovernmentandenterprise.Accordingtothelawsofthemarketeconomy,thegovernment,asamanager,cannotdirectlyorindirectlyparticipateinmarketcompetition.Thegradualtransferoftheassetsofstate-ownedenterprisesandcollective-ownedenterprisestothepeople’scongressesatalllevelsistheneedfortheestablishmentofasocialistmarketeconomyandtherealizationofsocialism.Theneedforcommonprosperitygoals.Afterthepeople’scongressisreallystrongeconomically,thepeoplewillparticipatemoreactivelyintheelectionprocessandvotemorecautiously,sothatthepeople’scongresscanmoreeffectivelysupervisegovernmentbehaviorpolitically.Therefore,politicalandeconomicreformstostrengthenthestatusofthepeople’scongressarealsostrengtheningsocialism.Theonlywaytodemocracy.

InOctober2008,ProfessorCuiZhiyuanfromtheSchoolofPublicAdministrationofTsinghuaUniversitygaveaspeechattheseminartocommemoratethe30thanniversaryofreformandopeningupandthefoundingmeetingoftheNationalDevelopmentResearchInstitute.Itisconsideredtobeapurepoliticalslogan.Itisonlybecausetherulingpartyaddssocialisminfrontofthemarketeconomy.Butinfact,the"socialistmarketeconomy"isrichincontentandreferstothebenefitsofpublicassetsinthemarketeconomy.Containsmoremeaning.

Deepentheunderstanding

Sincethe18thNationalCongressoftheCommunistPartyofChina,GeneralSecretaryXiJinpinghasputforwardaseriesofimportantthoughtsandimportantideasoncomprehensivelydeepeningreformsand"adheringtothedirectionofsocialistmarketeconomyreform."Theconclusionsandimportantmeasureshavepointedoutthecorrectdirectionfromboththeoreticalthinkingandpracticalexplorationforcomprehensivelydeepeningthereformoftheeconomicsystem.

Useboththe"invisiblehand"andthe"visiblehand"well

Economicsystemreformisthefocusofcomprehensivelydeepeningreforms.Thecoreissueistohandlethegovernmentandthemarketwell.Thisrelationshipenablesthemarkettoplayadecisiveroleintheallocationofresourcesandtobetterplaytheroleofthegovernment.Inthisregard,GeneralSecretaryXiJinpingemphasizedthat“forthemarkettoplayadecisiveroleintheallocationofresourcesandtogivebetterplaytotheroleofthegovernment,thetwoareorganicallyunified,notmutuallynegative,andcannotbeseparatedandopposed.”Itisto"learntousethe'invisiblehand'andthe'visiblehand'correctly."

Itisclearthat"themarketplaysadecisiveroleintheallocationofresources"isamajortheoreticalinnovationmadebythePartyCentralCommitteewithXiJinpingasGeneralSecretaryinsumminguptheeconomicandsocialdevelopmentpracticeandthehistoricalexperienceofthesocialistmarketeconomicsystemreformsincethereformandopeningup.Fromtheplannedeconomytothe"plannedcommodityeconomy"tothemarket"playingafundamentalroleintheallocationofresources"to"themarketplayingadecisiveroleintheallocationofresources",itmarksthatourparty'sunderstandingofthemarkethasgraduallydeepenedtoanewheight..

Theprocessofeconomicoperationistheprocessofoptimizingtheallocationofvariouseconomicresources.GeneralSecretaryXiJinpingemphasizedthat“themarketdeterminestheallocationofresourcesisagenerallawofthemarketeconomy,andthemarketeconomyisessentiallyaneconomyinwhichthemarketdeterminestheallocationofresources”."Themarketplaysadecisiveroleintheallocationofresources",whichfurtherestablishesthedirectionandprinciplerequirementsoffuturemarketeconomicsystemreforms.Itmeanstoreducedirectgovernmentinterventioninmicroeconomicactivitiesandtohandovereconomicactivitiesthatcanbeeffectivelyregulatedbymarketmechanisms.Themarketallowsthemarkettofullyplayitsroleinallareaswhereitcanplayarole,andpromotestheallocationofresourcestomaximizebenefitsandoptimizeefficiency.

Atthesametime,GeneralSecretaryXiJinpingpointedoutthat"themarketplaysadecisiveroleintheallocationofresources,notallofit."The"invisiblehand"ofthemarketisnottheomnipotent"handofGod".First,themarket'sspontaneousadjustmentisblind.Inthemarketeconomy,resourcesareadjustedspontaneouslyaccordingtothelawofvalueandtherelationshipbetweensupplyanddemand.However,duetothelagofinformationtransmissionandthelimitationofpersonalrationality,thisspontaneousadjustmentisinevitablyblindedtoacertaindegree.Thesecondisthatthemarketitselfcannotovercome"externalities."Underthemarketeconomyenvironment,variouseconomicactivitiesarebasedontheprincipleofcost-benefit.Publicproductsthatlackclearcost-benefitsubjectssuchasdevelopmentenvironment,publicorder,andgoodecologywillnotbeproducedoutofthinair.Third,themarketcannotbalanceefficiencyandfairness.Themarketeconomyadvocatesfreecompetitionandthesurvivalofthefittest.Becauseofthe"Mattheweffect","thestrongwillalwaysbestrong,andtheweakwillalwaysbeweak."Freecompetitionwilleventuallyturntoitsoppositeandformamonopoly.Atthesametime,itwillalsoleadtosocialpolarizationandthegapbetweentherichandthepoor,whichdeviatesfromtheoverallandlong-terminterestsofsociety.Itcanbeseenthatthe"invisiblehand"ofthemarketcannotcovertheworld.Whenthe"marketfails",itisnecessarytogiveplaytotheroleofthe"visiblehand"ofthegovernment.Inthisregard,GeneralSecretaryXiJinpingpointedoutthat"mycountryisimplementingasocialistmarketeconomicsystem,andwestillhavetocontinuetogivefullplaytothesuperiorityofoursocialistsystemandtheactiveroleofthepartyandgovernment.""Theresponsibilitiesandrolesofthegovernmentaremainlytomaintainmacroeconomicstability,strengthenandoptimizepublicservices,ensurefaircompetition,strengthenmarketsupervision,maintainmarketorder,promotesustainabledevelopment,promotecommonprosperity,andmakeupformarketfailures."

Improvethelevelofopeneconomyandpromotereformthroughopeningup

Overthepast30yearsofreformandopeningup,reformandopeninguphavepromotedeachotherandinteractedpositively.TheeconomicsystemreforminthedirectionofestablishingamarketeconomyhasachievedsignificantresultsProgressandgreatdevelopment.Todeepenthereformoftheeconomicsystem,wemustfurtherincreasetheintensityofopeningtotheoutsideworldandraisethelevelofopeneconomy.Inthisregard,GeneralSecretaryXiJinpingpointedoutthat“itisnotaquestionofwhethertoopenup,butaquestionofhowtomakeourlevelofopennesshigher”,andemphasizedthat“amoreproactiveopeningstrategymustbeimplementedtocreatenewcompetitiveadvantages.Comprehensivelyimprovethelevelofopeneconomyonalargerscale,broaderfield,anddeeperlevel."

Themarketeconomymustbeanopeneconomy.Byexpandingopeningtotheoutsideworld,variousmarketelementscanobtaingreatercirculationspaceandchoiceofresourceallocationmethods,whichwillnotonlyhelpusbettercoordinatethedomesticandinternationalsituations,makegooduseofthetwomarketsandtworesources,butalsoGainmoreexternalpowerforeconomicsystemreform,forcethelegalsystem,governancemethods,marketenvironment,andeventheideologicalconceptsofthewholesocietytobetteradapttotheneedsofmarketeconomydevelopment,removetheideologicalshacklesandpracticalresistancethathinderthedevelopmentofmarketeconomy,andacceleratetheimprovementofsocialismMarketeconomysystem.Sincethe18thNationalCongressoftheCommunistPartyofChina,GeneralSecretaryXiJinpinghasdeeplygraspedthenewrequirementsofdomesticreformanddevelopment,hasbeenmoreproactiveinadvancingahigherlevelofopeningup,insistingon"theinitiativetowineconomicdevelopmentandtheinitiativetowininternationalcompetitionwiththeinitiativeofopeninguptotheoutsideworld",andOneafteranother,majorstrategicideassuchasthe"CommunitywithaSharedFutureforMankind","OneBeltOneRoad",and"FreeTradeZoneStrategy"havebeenproposed,whichnotonlygreatlyenhancesChina'srighttospeakininternationaleconomicandtradecooperation,butalsopromotesthedevelopmentoftheinternationaleconomicorderinamorejustandreasonabledirection.Italsoopensanewwindowformycountrytodeepenthereformoftheeconomicsystem.

Whileopeninguptotheoutsideworld,wemustalsoemphasizeopeninguptotheinside.Atthebeginningofreformandopeningup,ComradeXiaopingpointedoutthatitisnecessaryto"respectthelawsofsocialandeconomicdevelopment,engageintwoopenings,onetotheoutsideandonetotheinside."Either"invigoratinginternally"or"openingupinternally"canbeunderstoodas"releasinginternally".Inthisregard,GeneralSecretaryXiJinpingpointedout,“Althoughmycountry’ssocialistmarketeconomicsystemhasbeeninitiallyestablished,themarketsystemisnotyetsoundandthemarketisnotfullydeveloped.Inparticular,therelationshipbetweenthegovernmentandthemarkethasnotbeenstraightenedout.Theeffectiveplayoftheroleissubjecttomanyconstraints.""Manyconstraints"arehighlytargetedandproblem-oriented.Forexample,duetoinsufficientopeningofthefinancialmarketandhighthresholds,asthemostdynamicandcreativeSMEsinthemarketeconomy,itisdifficulttomeetthefinancingneedsinthedevelopmentandgrowthprocess;duetothedualurban-ruralpatternandurbanhouseholdregistrationmanagementThenewgenerationofmigrantworkersinthecitiescannotstayinthecities,andthevillagescannotgoback.Thishasbecomeabottleneckandchronicdiseaseinthedevelopmentofurbanization;insomeimportantindustriesandeconomicfieldsthatarenotthelifebloodofthecountry’seconomy,duetovariousrestrictionsorthelackofaunifiedmarketaccesssystem,Objectivelyformedinvisiblediscriminationagainstthenon-publicsectoroftheeconomy,forminga"fenceofsolidificationofinterests."Therefore,whileincreasingtheintensityofopeninguptotheoutsideworld,wemustputtheopeninguptotheinsidetoamoreprominentposition.Throughdeepeningdomesticopeningup,promotingdeepeningreformsinallaspects,breakingallkindsofrestrictionsthatdonotconformtothelawsandrequirementsofthemarketeconomy,andpromotingthecontinuousimprovementanddevelopmentofthemarketeconomysystem.

Theprotectionoftheruleoflawmustalsobeguidedbymorality

Lawandmoralityarebothimportantmeanstomaintainsocialorderandensuretheorderlyoperationofsociety.Tofurtherdeepenthereformofthemarketeconomysystem,wemustnotonlygiveplaytotheguaranteeoftheruleoflaw,butalsostrengthenmoralconstruction.Inthisregard,GeneralSecretaryXiJinpingpointedout,“Wemustadheretothecombinationofruleoflawandruleofmorality,closelyintegratetheconstructionoftheruleoflawandmorality,andcloselyintegrateheteronomyandself-discipline,sothattheruleoflawandtheruleofmoralitycomplementeachotherandpromoteeachother.".

Themarketeconomyisaneconomyundertheruleoflaw.Thebasicpremiseandrequirementsofthemarketeconomyareclearandstablepropertyrights,fairperformanceofcontracts,anduniformandequalrules.Ontheonehand,theruleoflawcanprotectthelegitimaterightsandinterestsofvariousentitiesinthemarketeconomy,maintainaunifiedandfairmarkettransactionorder,andformsocialexpectationsforthenormaloperationofthemarketeconomy;ontheotherhand,theruleoflawcanregulatetheoperationofpower,dividethegovernmentandthemarket,andclarifyThefieldsandscopesoftheirrespectivefunctionsprovidebasicprinciplesandfollowfor"bothhandsmustbeusedwell".AsGeneralSecretaryXiJinpingpointedout,“Thesocialistmarketeconomyisessentiallyaneconomyundertheruleoflaw.Tomakethemarketplayadecisiveroleintheallocationofresourcesandtobetterplaytheroleofthegovernment,itisnecessarytoprotectpropertyrights,maintaincontracts,unifythemarket,equalexchanges,andfairCompetitionandeffectivesupervisionshallbethebasicguidance,andthelegalsystemofthesocialistmarketeconomyshallbeimproved."

Themarketeconomycallsformorality.Ontheonehand,themarketeconomyisacrediteconomy,basedonthespiritofcontractandtheprinciplesofhonestyandtrustworthiness.Amarketeconomythatlacksethicswillinevitablyleadtodisorderlycompetition,enlargedrisks,increasedtransactioncosts,andadeclineintheefficiencyofmarketmechanisms.NobelLaureateinEconomics,Northoncesaid,“Anefficientmarketsystemrequiresaneffectivecombinationofpropertyrightsandlegalsystems,butalsorequiresgoodintegrity,integrity,cooperation,fairness,andjustice.Moralpeopleoperatethismarket".Ontheotherhand,inamarketeconomy,capitalchasingprofitsandpersonalpursuitsforbenefitscaneasilyleadtomoralanomiephenomenasuchasmoneyworshipandextremeself-interest,whichwillerodethemoralfoundationofthelong-termdevelopmentofthewholesociety.Therefore,whileperfectinganddevelopingthemarketeconomy,itisnecessarytostrengthenthemoralconstructionthatiscompatiblewiththemodernmarketeconomy.Inthisregard,GeneralSecretaryXiJinpingemphasizedthat“ethicsisthecornerstoneofsocialrelations”and“whiledevelopingthesocialistcommodityeconomy,wemustnotDon'tforgettostrengthenideologicalandpoliticalwork,andstrengthenthecultivationofthesocialistspiritandthecultivationofmoralquality...…Graduallyformideologicalconcepts,moralqualitiesandlifestylesthatarecompatiblewiththeneedsofmodernproductionandlife.Wemustnotgetridofpovertymaterially,butbeignorantspiritually."Basedonthisunderstanding,thePartyCentralCommitteewithXiJinpingastheGeneralSecretaryvigorouslyadvocatestheconstructionofsocialistcorevalues,andclearlystatedinthe"OpinionsonCultivatingandPracticingSocialistCoreValues","Tocarryoutvariousproductionandbusinessactivities,itisnecessarytoFollowtherequirementsofthesocialistcorevalues,tostresssocialresponsibility,socialbenefits,law-abidingoperation,faircompetition,honestyandcompliance...Wemustpayattentiontotheorganicunityofeconomicbehaviorandvalueorientation,andtheorganicunityofeconomicandsocialbenefits.Realizethebenigninteractionbetweenmarketeconomyandmoralconstruction".

Wemustadheretothe"twounshakable"

Thebasiceconomicsystemwithpublicownershipasthemainstayandmulti-ownershipeconomydevelopingtogetherisanimportantpillarofthesocialistsystemwithChinesecharacteristics,anditisalsoasocialThefoundationofthesocialistmarketeconomysystem.Tocomprehensivelydeepenreformsandfurtherimprovethesocialistmarketeconomicsystem,wemustunswervingly"adheretothedominantstatusofpublicownership"and"encourage,support,andguidethedevelopmentofthenon-publicownershipeconomy."

Ontheonehand,wemustunswervinglyadheretothedominantpositionofthepubliceconomy.Publicownershipofthemeansofproductionisanessentialfeatureofsocialism,anditisaninevitablechoiceforadheringtothedirectionofsocialism,"liberatinganddevelopingproductiveforces,"andrealizing"commonprosperity".AbandoningthestatusofthemainbodyofthepubliceconomymeansdeviatingfromthecorrectdirectionofsocialismwithChinesecharacteristicsandcommittinga"subversiveerror."Practicesincethereformandopeninguphasalsoprovedthatthesocialistmarketeconomicsystembasedonthepublicownershipasthemainbodyandthecommondevelopmentofthebasiceconomicsystemofmultipleownershipeconomieshasagreaterdevelopmentadvantagethanthemarketeconomybasedonprivateownershipofthecapitalistsociety.

Intheprocessofdeepeningthereformofthemarketeconomysystem,thepublic-ownedeconomyisfacingthetestofacceleratingthepaceofreform,consolidatingitsdominantposition,andplayingagreaterroleandefficiency.Inthisregard,GeneralSecretaryXiJinpingpointedoutthat“howtobetterreflectandadheretothedominantpositionofpublicownership,andtofurtherexploretheeffectiverealizationofthebasiceconomicsystemisamajorissuebeforeus.”Inthisregard,someviewsthatone-sidedlyemphasized"nationalretreatandprivateadvancement"oreven"fullprivatization"arecompletelycontrarytotheprincipleof"adheringtothedominantstatusofpublicownership".Notonlyaretheyuntenabletheoretically,theyarealsoveryharmfulinpractice.of.AsGeneralSecretaryXiJinpingpointedout,thepublic-ownedeconomy"occupiesadominantpositioninmajorindustriesandkeyareasrelatedtonationalsecurityandthelifelineofthenationaleconomy.Itisanimportantpillarofthenationaleconomyandisintheeconomicfoundationofourparty’sgovernanceandmycountry’ssocialiststatepower.Italsoservesasapillarandmustbedonewell."Therefore,todeepenthereformofthesocialistmarketeconomysystem,thedominantpositionofthepubliceconomycanonlybestrengthenedbutnotweakened.

Ontheotherhand,wemustunswervinglyencourage,support,andguidethedevelopmentofthenon-publiceconomy.Thenon-publicownershipeconomyisnotonlynaturallyrelatedtothemarketeconomy,butalsoconnectedtothelevelofproductivityatmultiplelevels;itisnotonlyconducivetogivingfullplaytothedecisiveroleofthemarketinallocatingresources,andpromotingtheefficiencyofthepublicownershipeconomy,butalsopromotinginnovation,expandingemployment,andincreasingTaxationandeconomicvitalityhaveshowngreatadvantages.GeneralSecretaryXiJinpingpointedout,“Sincethereformandopeningup,mycountry’sownershipstructurehasbeengraduallyadjusted,andtheproportionofpublicandnon-publiceconomiesineconomicdevelopmentandemploymentpromotionhascontinuedtochange,whichhasenhancedthevitalityofeconomicandsocialdevelopment.”Accordingtostatistics,asoftheendof2012,thecontributionrateofthenon-publiceconomytoGDPhasexceeded60%,whichisaveritable"halfofthecountry."Forthisreason,the"Decision"oftheThirdPlenarySessionoftheEighteenthCentralCommitteeoftheCommunistPartyofChinaputforwardmajortheoreticalinnovationsandreformmeasuresforthedevelopmentofnon-publicownershipeconomyfrommultiplelevels:intermsofpropertyrightsprotection,itclearlyproposed"twoinviolability",thatis,"publicownershipeconomy".Propertyrightsareinviolable,andnon-publiceconomicpropertyrightsareequallyinviolable.”Intermsoffaircompetition,itemphasizesthe“threeequalitys”,namely“equalrights,equalopportunities,andequalrules.”Inguidingtheintegrationofpublicandnon-publiceconomies,encouragenon-publicownershipoftheeconomy.Public-ownedenterprisesparticipateinthereformofstate-ownedenterprises,andevennon-publiccapitalcontrols.Thereisnodoubtthatthesemajortheoreticalinnovationsandreformmeasureswillsurelyprovideastrongerimpetusandbroaderdevelopmentspaceforacceleratingthedevelopmentofthenon-publicsectoroftheeconomy.