Ensuring Smooth Flows in the National Economy

Building a high-standard socialist market economy is a major reform task. It is imperative to accelerate efforts in this regard and ensure smooth flows in the national economy.

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization was adopted at the third plenary session of the 20th CPC Central Committee.

It sets out plans for developing such a market in order to boost efficiency and for improving macroeconomic governance systems to ensure an effective government. Based on this two-pronged approach, we will take steps to both lift market restrictions and ensure effective regulation.

To build a unified national economy, we will work to eliminate all forms of local protectionism and market segmentation. We will enhance the binding force of fair competition review and abolish regulations and practices that impede the development of a unified national market and fair competition.

While bringing local regulations and institutions for attracting investment under regulation, we will explore new channels and models for local governments to attract investment, so as to ensure its high-quality development.

We will improve the institutions and rules for production factor markets, push ahead with reforms for market-based allocation of production factors, and remove all institutional obstacles hindering the free movement of factors. We will expand the scope of market-based production factor allocation by boosting the development of production factor markets and related institutions.

These steps will ensure that prices are determined by the market, factors can flow in an independent and orderly manner, and allocation is both fair and efficient.

In-depth trials of reforms on the market-based allocation of production factors will also be continued.

We will refine the systems underpinning the market economy, improving property rights protection, information disclosure, market access, credit-rating based supervision, and other systems. We will strengthen the legal safeguards for the market economy, ensuring equal protection of property rights for entities under all forms of ownership in accordance with the law and bolstering protection of intellectual property rights.

We will refine the market access system to ensure greater accessibility for new forms of business and new sectors. Improvements will be made to the macroeconomic governance system. With the new five-year plan for economic and social development serving as the entry point, we will improve the systems of national strategic planning, policy coordination, and national economic and social development planning.

Further steps will be also taken to improve the quality and effectiveness of evaluations to determine the consistency of the macro policy orientation. To this end, non-economic policies, as well as economic policies, will be included within the scope of evaluation, so as to avoid mistakes arising from fallacies of both composition and division.

Editor: Zhang Xian