Development is a continuous and gradual process, and comprehensively deepening reform is an inexhaustible source of power driving China’s progress. The Third Plenary Session of the 20th Central Committee of the Communist Party of China focused on further deepening reform, with the overarching goal of improving and developing the socialist system with Chinese characteristics and promoting the modernization of the national governance system and capacity. It identified the key obstacles, challenges, difficulties and priorities that need to be addressed in the reform process. This not only underpins China’s confidence in successfully achieving Chinese-style modernization amidst complex and changing circumstances but also forms the foundation for China’s ongoing contributions to global economic stability.

The Third Plenary Session of the 20th Central Committee of the CPC reviewed and approved the Resolution of the Central Committee of the CPC on Further Deepening Reform Comprehensively and Promoting Chinese-style Modernization, marking the full launch of a new round of comprehensive deepening of reforms. Based on the resolution, there are four main highlights:

Understanding why reform is necessary and what problems need to be addressed is crucial for scientifically designing effective reform plans. This requires an accurate assessment of the development environment and situation. The resolution asserts that China currently faces a severe and complex international environment alongside arduous domestic tasks in reform, development, and maintaining stability. It clearly states that the present and future periods are critical for comprehensively advancing the construction of a strong nation and the great cause of national rejuvenation through Chinese-style modernization. This assessment is highly accurate and is a fundamental prerequisite for ensuring the successful completion of reform targets.

Liberating and developing social productive forces has always been a fundamental task and distinctive feature of China’s reform and opening up, and it remains one of the most valuable lessons learned. The resolution indicates that the issue of social productive forces continues to receive significant attention. However, the focus has shifted to the liberation and development of new productive forces, while also emphasizing the importance of stimulating and enhancing social vitality. This involves managing key relationships such as those between the economy and society, government and market, efficiency and fairness, vitality and order, and development and security. This shift underscores the increased emphasis on system integration for the reform. 

As a programmatic document guiding the further deepening of reform, the resolution of the Third Plenary Session of the 18th CPC Central Committee covers a wide range of reform areas, yet it systematically highlights key points with a strong priority-oriented focus. For instance, the resolution underscores economic system reform by emphasizing the equal status of different ownership economies within the socialist market economic system. It also prioritizes the development of new quality productive forces tailored to local conditions as a means of promoting high-quality development. In terms of improving the macro-control system, the resolution first addresses critical areas such as finance and taxation. Land system reform is highlighted in the context of integrated urban and rural development. Additionally, the resolution addresses the national security system, security governance capabilities, and security mechanisms related to development security, demonstrating a comprehensive approach to reform that accentuates key priorities.

The effectiveness of the reform and the ability to achieve its tasks and goals rely not only on the reformers’ dedication but also on having a well-defined timeframe. The resolution specifies that by 2029, the 80th anniversary of the founding of the People’s Republic of China, the reform tasks outlined in the resolution will be completed.  Objectively speaking, setting this timeline serves not only to establish a schedule for the reforms and provide clear deadlines for those implementing them but also as a solemn commitment by the Chinese Communists to the people. This underscores the reform’s focus on achieving tangible results.

Despite China’s notable achievements in recent years, some critics continue to overlook these developments, focusing instead on issues such as insufficient consumption, reduced foreign investment, and high debt levels. They erroneously label China’s economy as “stagnant” and “at its peak,” ignoring the broader context. Recent data from the National Bureau of Statistics shows that China’s GDP growth rate reached 5% in the first half of the year. More importantly, reform has consistently been a driving force behind China’s sustained development. This latest round of comprehensive reform promises continued progress and global significance in six key areas.

First, institutional innovation has always been a crucial driver of economic development. This round of reform emphasizes strengthening institutional frameworks, focusing on building systems and mechanisms in key areas. It aims to continuously enhance the institutional framework by establishing fundamental systems, refining basic structures, and fostering innovation in critical systems. This approach is central to unlocking the full potential for economic growth.

Second, China benefits from the institutional advantage of concentrating efforts on key priorities. This round of reform focuses on enhancing the Party’s leadership and long-term governance capabilities. It underscores that scientific macroeconomic regulation and effective government governance are essential for leveraging the advantages of the socialist market economy system. This focus is key to reinforcing China’s institutional strengths.

Third, China benefits from the advantage of its vast market. The demand of over a billion people is equivalent to that of several medium-sized countries combined. This round of reform underscores the need to establish a unified national market, improve the foundational systems of the market economy, and overcome obstacles to market and regional integration. This is crucial for boosting social vitality.

Fourth, liberating and developing productive forces has always been a central focus of reform. The resolution highlights the need to enhance the systems and mechanisms for fostering new quality productive forces tailored to local conditions in response to the latest scientific and technological revolutions and industrial transformations. Addressing bottlenecks that impede scientific and technological innovation is essential for strengthening China’s technological capabilities.

Fifth, people are both the starting point and the ultimate goal of reform. This round of reform places a strong emphasis on promoting social fairness and justice, and improving people’s well-being as its core focus. Protecting the people’s initiative and ensuring that reforms lead to a better quality of life are fundamental. This approach is crucial for driving innovation through reform.

Sixth, actively shaping global governance is a key objective of this round of reform. It continues to prioritize accelerating high-level opening-up, leveraging China’s vast market advantages to enhance international cooperation, and developing a more open economic system. This reflects the commitment to common development with other countries and is central to strengthening China’s influence on the global stage.

In summary, this round of reform is based on a precise understanding of historical context, current trends, global dynamics, and development challenges. The goals, directions, plans, ideas, and priorities set by this reform are the result of thorough investigation and rigorous analysis, and they are designed to stand the test of time and public scrutiny. We are confident that, with the full implementation of these reform measures, China will achieve a new level of high-quality development and continue to make significant contributions to global economic prosperity.

Hu Xiaopeng, Deputy Director, Research Fellow and Doctoral Supervisor, Institute of World Economy, Shanghai Academy of Social Sciences.

Source: Touch Shanghai