Accelerate Economic Modernization

Accelerate Economic Modernization* 

January 30, 2018 

Developing a modernized economy is a major undertaking that demands in-depth discussions from the perspective of integrating theory with practice. It is a strategic goal for China's development, and an imperative for the transformation of the development model, the optimization of economic structure, and the fostering of new growth engines. The whole Party must have a good understanding of the importance and difficulty of developing a modernized economy and a good grasp of the goals and priorities of this task, and work together to bring out new vitality in economic development and elevate it to a new level.

Developing a modernized economy is an important strategy decided by the Central Committee in view of the overall requirements that our Party and our country meet the new calls of socialism with Chinese characteristics entering a new era, and realize the Two Centenary Goals. A strong country must have a strong economy. Only with a modernized economy can China better adapt to current international trends, seize the initiative in international competition, and provide support for modernization in other fields. We should develop a modernized economy quickly because this is an important part of building China into a great modern socialist country.

A modernized economy integrates all social and economic activities at every link and every level and in every area that are interconnected and internally related.

An industrial system should be built with innovation playing a leading role, featuring coordinated development of the real economy, science and technology innovation, modern finance and human resources, so that innovation will contribute more to the development of the real economy, modern finance will have a stronger capability of serving the real economy, and human resources will play an optimized role in supporting the real economy.

A modern market system will be put in place that is unified, open, competitive and well-ordered, to achieve smooth market access, an open and orderly market, full market competition, and sound market management, in which enterprises are responsible for their own operations and engage in fair competition, consumers are free to choose and consume, and goods and production factors flow freely and are exchanged on an equal basis.

An efficient and fair income distribution system is to be established, to achieve reasonable income distribution, social fairness and justice, and common prosperity for all, to promote equitable access to basic public services, and to gradually narrow the income distribution gap.

A system of coordinated urban-rural and regional development is to be built to help local regions develop their own strengths, to achieve benign regional interaction, integrated urban-rural development, and overall optimization of land and sea resources, to foster and leverage regional comparative strengths, to reinforce complementarity between regions, and to shape a new framework of coordinated regional development.

A green development system that conserves resources and is environmentally friendly is to be developed, to achieve green, circular and low-carbon development and harmonious coexistence between humanity and nature, to firmly establish and practice the concept that clear waters and green mountains are invaluable assets, and to bring into being a new model of modernization where humanity and nature develop in harmony.

A diverse, balanced, secure and efficient system for opening up on all fronts is to be promoted, to develop a higher-standard open economy and ensure that opening up helps to optimize structure, expand depth and improve efficiency.

An economic system that gives full play to market forces and the role of government is to be put in place, so that market mechanisms are effective, economic players active, and macro-regulation sound.

These systems make up an integral whole and should be developed and promoted together. In developing the modernized economy, we need to draw on the useful practices of developed countries, but this should be done in line with China's own national conditions and characteristics.

A modernized economy demands concrete and effective policies, measures and actions. We need to pay special attention to these fields.

First, develop the real economy to lay a solid foundation for the modernized economy. The real economy is the very foundation of an economy, the fundamental source of wealth creation, and an important pillar of national prosperity. China should extend its supply-side structural reform, develop advanced manufacturing industry, and integrate the real economy fully with the internet, big data and artificial intelligence technology. We should double our efforts to enhance the real economy, gathering resource elements and adopting preferential policies and measures for it. Our purpose is to create a development environment and social atmosphere that encourages practicality, diligence, entrepreneurship, and prosperity through developing the real economy.

Second, lose no time in implementing the innovation-driven strategy to strengthen the support for the modernized economy. China will build a stronger national innovation system, strengthen science and technologies of strategic importance, integrate innovation more deeply with economic and social development, and promote more leading-edge developments that are driven by innovation and first-mover advantages.

Third, actively promote coordinated development of urban and rural areas to optimize the spatial configuration of the modernized economy. It is necessary to better implement coordinated development strategies for the Beijing-Tianjin-Hebei Region, the Yangtze River Economic Belt, and the Guangdong-Hong Kong-Macao Greater Bay Area. Rural revitalization is a great plan, and we must work hard to execute it.

Fourth, develop an open economy to improve the international competitiveness of the modernized economy. China should better utilize global resources and markets and promote international cooperation within the framework of the Belt and Road Initiative.

Fifth, further reform our economic system to provide institutional guarantees for the modernized economy. China should improve the system of socialist market economy, resolutely break down institutional obstacles in all areas, and stimulate the vitality of the whole society in innovation and entrepreneurship.

* Main points of the speech at the third group study session of the Political Bureau of the 19th CPC Central Committee.

(Not to be republished for any commercial or other purposes.)