EXPLANATION OF THE CPC CENTRAL COMMITTEE DECISION ON ISSUES CONCERNING FURTHER COMPREHENSIVE REFORM

EXPLANATION OF THE CPC CENTRAL COMMITTEE DECISION ON ISSUES CONCERNING FURTHER COMPREHENSIVE REFORM*

November 9, 2013

On behalf of the Political Bureau of the 18th Central Committee of the Communist Party of China, I will now brief you on the Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Further Comprehensive Reform. 

I. The Drafting Process

Since the launch of reform and opening up in 1978, each of the third plenary sessions of past CPC central committees has provided the public with important information on the governance policies and focus of the new Party leadership. The agenda, decisions, planned measures, and signals released are always of great significance to the Party’s work in the subsequent five to ten years.

After the Party’s 18th National Congress, the Central Committee set out to define the agenda of the Third Plenary Session of the 18th CPC Central Committee. The congress set the goals of completing the building of a moderately prosperous society in all respects and furthering reform and opening up, and emphasized that the Party must use all its abilities, lose no time in continuing reform in key sectors, and resolutely discard all ideas and mechanisms that hinder efforts to pursue sustainable development. It also pointed out that the Party should set up well-developed, standardized and effective systems, and ensure that institutions in all sectors are fully functioning. To achieve these strategic goals and carry out the plans, we must press ahead in promoting comprehensive reform. 

Thirty-five years have passed since the Third Plenary Session of the 11th CPC Central Committee, when the Party made the historic decision to shift the focus of the Party and the state to economic development, reform and opening up. The force that has propelled the improvements in Chinese people’s lives, the advances in our socialist country, the progress of our Party, and China’s growing international status, is none other than our perseverance in driving forward reform and opening up.

During his inspection tour of southern China in 1992, Deng Xiaoping said, “If we did not adhere to socialism, implement the policy of reform and opening to the outside world, develop the economy and raise living standards, we will find ourselves in a blind alley.” Today, in retrospect, we have a better understanding of his views. This is why, as we are well aware, only socialism can save China, and only reform and opening up can develop China, socialism, and Marxism.

Considering the historical lessons we have learned and the demands of the current times, the Party Central Committee has emphasized since the 18th National Congress that reform and opening up will be decisive in determining the future of contemporary China. It is also the key to realizing the Two Centenary Goals and the rejuvenation of the Chinese nation. No limits should be placed on action, development, freeing our minds, or the reform and opening-up effort. We must not stall or go into reverse; reform and opening up is a constant and ongoing process. Facing the new situation and new tasks, comprehensive reform must drive solutions to the major problems challenging China’s development, and we must work tirelessly to make improvements and advance socialism with Chinese characteristics.

In view of the extensive and profound changes on the domestic and international fronts, China faces a series of prominent problems and challenges. Our development remains imbalanced, uncoordinated, and unsustainable. Our scientific and technological innovation is weak. The industrial structure is imbalanced and our growth model is inefficient. The development gaps between urban and rural areas and between regions are still large, as are income disparities. Social problems are on the rise. Many problems affect the people’s immediate interests, for example in education, employment, social security, health care, housing, the eco-environment, food and drug safety, workplace safety, public security, law enforcement, and administration of justice. Some people still lead hard lives. Form over substance, bureaucratism, hedonism, and extravagance are serious problems. Some sectors are prone to corruption and other types of misconduct, and the fight against corruption in particular poses a serious challenge. The key to solving these problems lies in further reform.

In April this year, after profound reflection and research, and after extensively soliciting opinions both inside and outside the Party, the CPC Central Committee’s Political Bureau decided that further comprehensive reform would be the central topic for discussion at the Third Plenary Session of the 18th CPC Central Committee, and that the session would formulate a Decision.

On April 20 the CPC Central Committee issued the Circular on Soliciting Opinions on the Agenda of the Third Plenary Session of the 18th CPC Central Committee on Furthering Comprehensive Reform. It was unanimously agreed by all provincial authorities and central departments that the selection of this topic answered the calls of the Party members, officials, and the people to address the issues that are of most concern to society as a whole. The public also showed widespread support.

All the third plenary sessions of the CPC central committees convened since reform and opening up began have discussed how to continue reform, which has signaled our Party’s unswerving commitment to reform and opening up, and to the theories, guidelines and policies defined since the Third Plenary Session of the 11th Party Central Committee. In sum, this answers the question of what banner to brandish and what path to take in the new era.

The decision to choose further comprehensive reform as the central topic at the Third Plenary Session of the 18th CPC Central Committee was an important one, as it perfectly reflects the CPC’s continuing commitment to the guidance of Deng Xiaoping Theory, the Theory of Three Represents and the Scientific Outlook on Development. The Party is implementing its basic guidelines and political program, learning from its past experiences, meeting its fundamental requirements, and firmly upholding reform and opening up.

After the agenda was set, the Political Bureau of the CPC Central Committee set up a group to draft the Decision. I served as the head of the group, with Liu Yunshan and Zhang Gaoli as deputy heads. Officials in charge of related departments and the leaders of some provinces and municipalities also took part. The work was carried out under the auspices of the Standing Committee of the Political Bureau of the CPC Central Committee.

Over a period of some seven months, the drafting group solicited extensive opinions, carried out appraisals of important topics, conducted analyses and research, and held numerous discussions. The document was revised many times. During this period, three meetings of the Standing Committee of the Political Bureau and two meetings of the Political Bureau were held to review the draft Decision. The draft was also circulated among certain Party members and retired Party officials for their suggestions. Opinions were also heard from the central committees of other political parties, from heads of the All-China Federation of Industry and Commerce, and from prominent individuals without party affiliation.

The feedback showed that all those groups and individuals agreed that the Decision provides an in-depth analysis of the key theoretical and practical challenges to China’s reform, development and stability, and expounds on the significance and the future of reform. It sets forth the guidelines, goals, tasks and underlying principles; it defines a new blueprint for reform; it vigorously envisions new targets; it includes ideas, assessments, and measures; it reflects the calls, appeals and aspirations of society; it epitomizes the consensus and wisdom of the Party and the general public.

The groups and individuals consulted agreed that the Decision lays out a balanced plan for strategic areas, with prioritized goals and focal points. It also introduces the working mechanism, the methods of implementation, and the timetable and road map for the plan. It makes a series of major breakthroughs in the theories and policies guiding the reform effort. It once again sets overall plans and serves as a general rallying cry for the nation to take action. The Decision will exert a significant and far-reaching influence on the development of the socialist cause with Chinese characteristics.

In the course of soliciting opinions, people from all sides offered many valuable ideas and suggestions. Following careful study and discussion of these ideas and suggestions within the drafting group, as instructed by the Party Central Committee, important revisions were made to the Decision.

II. The General Framework and Key Content of the Decision

The Political Bureau of the Party Central Committee believes that, facing new situations, new tasks, and new requirements, China must take further comprehensive reform measures. The key to this lies in further developing an environment for fair competition, further invigorating economic and social growth, further boosting the efficiency of the government, further achieving social equality and justice, further promoting social harmony and stability, and further improving the Party’s leadership and governance.

To meet these challenges, it must be emphasized that we should be fully aware of our problems, focus on the key issues for further study and research, and strive to solve the prominent conflicts and problems hindering our development. In fighting its way through revolution, construction and reform, the CPC’s sole aim has always been to solve the country’s problems. It is fair to say that existing problems force us to continue to reform, and deeper reform is the key to tackling and solving problems.

In the past 35 years we have overcome many problems hindering the development of the Party and the state through reform. But new problems always replace old ones during our course of exploration and transformation. This is why our system needs to be constantly improved, why reform cannot be accomplished in one stroke, and why we cannot rest on our laurels once existing problems are solved.

The draft Decision addressed five major considerations. One, in line with the new requirements for developing the Party and the state, it had to carry out the strategic task of furthering comprehensive reform set forth at the Party’s 18th National Congress. Two, it had to center on reform with new measures to the fore, setting aside general and existing measures and measures solely for promoting development. Three, it had to address key issues, properly deal with the pressing concerns of the people, respond to their calls and aspirations, focus on important areas and crucial sectors, and highlight the leading role of economic reform in promoting development. Four, it had to take an active yet prudent attitude when designing reform measures. Five, it had to plan the related tasks according to a timetable, which required that by 2020 decisive results would have been achieved in the reform of important areas and crucial sectors.

The plenary session established as the framework of the Decision the important issues that China needs to deal with, and defined the structure of the Decision according to its various points. In addition to the Foreword and Conclusion, there are 16 parts divided into three main sections. Section one contains the first part – the General Principles – which mainly elaborate on the significance of the Decision, and its guiding thoughts and overall direction. Section two contains Parts 2-15, introducing the main tasks and important measures in six fields – the economy, politics, culture, society, the eco-environment, and national defense and the armed forces. The different fields are arranged as follows: the economy from Part 2 to Part 7, politics from Part 8 to Part 10, culture in Part 11, society from Part 12 to Part 13, the eco-environment in Part 14, and national defense and the armed forces in Part 15. The third section contains Part 16 – Organizational Leadership – which mainly elaborates on strengthening and improving the Party’s leadership in terms of the overall goal.

Here, I would like to explain the considerations of the CPC Central Committee on the major issues and key measures documented in the Decision.

First, allowing the market to play the decisive role in allocating resources and letting the government perform its functions better. This is a major proposal, because reform of the economic system is still the focus, and appropriate handling of the relationship between the government and the market is still the core issue in economic reform.

In 1992 the Party’s 14th National Congress stipulated that the aim of China’s economic reform was to establish a socialist market economy, allowing the market to play the basic role in allocating resources under macroeconomic regulation of the state. This key theoretical breakthrough played an extremely important role in guiding China’s reform and opening up and its economic and social development. It also illustrated that innovations in theory pave the way for innovations in practice. To further comprehensive reform we must first renew our theory.

After 20 years of effort a basic socialist market economy has been established in China. But there are still many problems. The market lacks order, and many people seek economic benefits through unjustified means; the underdeveloped market for production factors is unable to meet the effective demand; the lack of unified market rules has resulted in rampant protectionism initiated by central departments or local governments; market competition is not good enough to select the superior and eliminate the inferior, and thus slows down economic restructuring. If left unsolved, these problems will hinder the development of a sound socialist market economy.

Over the past two decades since the Party’s 14th National Congress we have continued the search for a new positioning of the relationship between the government and the market through theoretical research and practical efforts. The Party’s 15th National Congress proposed that “the market plays a basic role in allocating resources under macroeconomic regulation of the state”. The Party’s 16th National Congress proposed to “give fuller play to the basic role of the market in allocating resources”. The Party’s 17th National Congress sought to “introduce institutions to give better play to the basic role of the market in allocating resources”, and the Party’s 18th National Congress stipulated that the Party should “leverage to a greater extent and in a wider scope the basic role of the market in allocating resources”. The above progression demonstrates that our understanding of the government-market relationship has steadily expanded.

During the discussion and consultation sessions regarding the Decision, many people suggested that the Party should further define the government-market relationship from a theoretical perspective, which would have great significance for further reform. With due consideration to these opinions and the current circumstances, and after much discussion and analysis, the Party Central Committee agreed that it was time to introduce a new theoretical expression concerning this matter, and that the “basic role” of the market in allocating resources should be revised to a “decisive role”.

We have now established a basic socialist market economy, with a much higher level of marketization. We have gained a better understanding of the market rules, expanded our capacity to use them to our benefit, and improved macroeconomic regulation. With both the subjective and objective conditions in place, we should take new steps forward and improve our socialist market economy.

To further balance the relationship between the government and the market we need to decide which of the two is to play the decisive role in allocating resources. To boost the economy we must improve the efficiency of the allocation of resources, especially that of scarce resources, so that we can use fewer resources to make more products and benefit accordingly. Both theory and practice have proved that the allocation of resources by the market is the most effective means to this end. It is a general rule of the market economy that the market decides the allocation of resources, and a market economy in essence is one in which the market determines resource allocation. We have to follow this rule as we improve our socialist market economy. We should work harder to address the problems of market deficiencies, too much government interference and lack of oversight. Positioning the market as playing the “decisive role” in resource allocation will help to build the correct understanding of the government-market relationship in the whole Party and society as a whole, to transform the economic growth pattern and government functions, and to rein in corruption and other forms of misconduct.

Our market economy is socialist, of course. We need to give leverage to the superiority of our socialist system, and let the Party and the government play a positive role. The market plays a decisive but not all the role in allocating resources.

To develop the socialist market economy, leverage should be given to both the market and the government, with differentiated functions. The Decision sets clear requirements for improving the functions of the government, emphasizing that appropriate macroeconomic regulation and effective governance are the intrinsic requirements for better leveraging the strengths of the socialist market economy. The Decision also presents plans for improving macroeconomic regulation, correctly performing government functions in all areas, and improving the organization of government. It emphasizes that the main responsibilities of the government are to maintain the stability of the macro economy, strengthen and improve public services, ensure fair competition, strengthen market oversight, maintain market order, promote sustainable development and common prosperity, and intervene in situations where the market fails.

Second, adhering to and improving the basic economic system. The basic economic system with public ownership playing a leading role and other forms of ownership growing side by side is an important pillar of the socialist system with Chinese characteristics.

Since the introduction of reform and opening up the structure of ownership has undergone gradual adjustment, with the contribution of the public and non-public sectors to the economy and employment undergoing a steady shift. The economy and society have grown more vigorous during this process. In these conditions, we must answer two major questions: How do we better recognize the leading role of public ownership and maintain this position? And how do we further explore effective forms for materializing the basic economic system?

It is emphasized in the Decision that we must remain firmly committed to consolidating and developing the public sector and to the leading role of public ownership and the state-owned sector. We must continue to increase the vitality, leveraging power, and impact of the state-owned sector.

As a means of advancing the Party’s deliberations since the 15th National Congress, the Decision proposes to vigorously develop the mixed-ownership economy. It emphasizes that cross-shareholding by and integration of state-owned capital, collective capital, and non-public capital is essential to materializing the basic economic system of China. It will help to improve the functions and maintain and increase the value of state-owned capital, and make the state-owned sector more competitive. Capitalizing on the leading role of public ownership, and improving the vitality, leveraging power, and impact of the state-owned economy, represent an effective strategy in the new era, and it is essential that we choose to follow this path.

The Decision states that China will improve the state assets management system, strengthen oversight of state assets with capital management at the core, and reform the authorized operating mechanism for state capital. State-owned capital investment must serve the strategic goals of the state, focus more on key industries and areas that are vital to national security and the lifeblood of the economy, prioritize public services, develop important and future-oriented strategic industries, protect the eco-environment, support scientific and technological progress, and guarantee national security. The government will transfer part of China’s state-owned capital to social security funds. We will increase the proportion of state-owned capital gains that are turned over to the public account, to be used to support and improve the people’s lives.

State-owned enterprises (SOEs) constitute an important force for advancing modernization and protecting the common interests of the people. Through many years of reform, SOEs have by and large assimilated themselves into the market economy. At the same time, however, they have encountered problems and drawbacks which call for further reform. The Decision proposes a series of targeted reform measures. We must ensure that state-owned capital increases its input into public-service-oriented enterprises. In natural monopoly industries in which state-owned capital continues to hold controlling interests, we must carry out reform to separate government administration from enterprise management and state assets management, allow franchise operation, and implement government oversight. We must take into consideration the conditions of different industries, separate network ownership from operation, and deregulate control over competitive businesses. We must improve the corporate governance structure to ensure smooth operation and effective checks and balances. We must establish a system of professional managers, and give better play to the role of business executives. We must establish a long-term incentive and restraint mechanism, strengthen investigations into the accountability of SOE operations and investment, and explore ways to publicize important information, including SOE financial budgets. Finally, SOEs should increase the proportion of market-based recruitment as appropriate, and properly determine and strictly regulate the salary level, post-related benefits and expenses, and business spending of SOE managerial personnel. These measures will encourage SOEs to modernize their corporate systems, raise their operating efficiency, better fulfill their social obligations, and play a more effective role in the economy.

In order to continue and improve our basic economic system, we must work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector. The Decision proposes reform measures on multiple levels to encourage, support and guide the development of the non-public sector of the economy, and to stimulate its vigor and creativity. On functional positioning, the Decision points out that both the public and non-public sectors are important components of the socialist market economy, and an important base for China’s economic and social development. On the protection of property rights, the Decision points out that the rights of both the public and non-public sectors are inviolable. On policy treatment, the Decision emphasizes equal rights, equal opportunities, identical rules, and a unified market access system. The Decision encourages non-public enterprises to participate in the reform of SOEs, encourages the development of mixed-ownership enterprises in which private capital holds majority shares, and encourages qualified private enterprises to establish modern corporate systems. All these will contribute to the healthy development of the non-public sector of the economy.

Third, furthering the reform of the fiscal and taxation systems. Finance is the foundation and an important pillar of national governance. Good fiscal and taxation systems are the institutional guarantee for improving resource allocation, maintaining market unity, promoting social equity, and realizing enduring peace and stability. Developed on the basis of the tax distribution system reform initiated in 1994, the current fiscal and taxation systems have played an important role in increasing the government’s financial strength and promoting the rapid growth of the economy.

As the situation changes, the current fiscal and taxation systems are no longer fully adapted to the division of administrative responsibilities between the central and local governments, and to improving national governance. They have lagged behind our effort to transform the economic growth pattern and promote the sustained and healthy development of the economy and society, and are causing problems that hinder economic and social development.

Reform of the fiscal and taxation systems is one of the key points in further reform. The reform mainly includes improvement of the budgeting and taxation systems, and establishment of a system in which responsibility for administration tallies with responsibility for expenditure.

The Decision stipulates that we will adopt a complete, standardized, open and transparent budget system, and increase as appropriate both the administrative and expenditure responsibilities of the central government, including those for national defense, foreign affairs, national security, and unified national market rules and management. The responsibilities for some social security programs, and the construction and maintenance of major trans-regional projects will be jointly shouldered by the central and local governments, before they are gradually defined. The central government can delegate some expenditure responsibilities to local governments through transfer payments. In terms of trans-regional public services with great impact on other regions, the central government will shoulder some of the expenditure responsibilities of the local governments concerned through transfer payments.

The main aims of the reform are to clearly define administrative responsibility, reform the taxation system, make tax burdens stable and budgets transparent, and increase efficiency. There are three further aims: to accelerate the development of a modern fiscal system that is conducive to the transformation of the economic growth pattern, the establishment of a fair market under unified rules, and the promotion of equal access to basic public services; to develop fiscal and taxation systems that are compatible with the financial resources and administrative responsibilities of the central and local governments; to mobilize the initiative of both the central and local governments.

Reform of the fiscal and taxation systems is a step-by-step process, and will take some time to complete. The Party Central Committee has clearly stated that we must maintain the stability of the current finances of the central and local governments, and further rationalize the division of revenues between them. 

Fourth, improving mechanisms and institutions for the integrated development of urban and rural areas. The imbalance between urban and rural areas is a serious problem hindering social and economic development – it is a major problem we must solve in order to complete the building of a moderately prosperous society in all respects and accelerate socialist modernization. Tremendous changes have taken place in China’s rural areas since the launch of reform and opening up. However, there has been no fundamental change to the structure of the urban-rural divide, and the widening gap between urban and rural development has not been reversed. To solve these problems, we must press ahead with the integrated development of urban and rural areas.

The Decision states that we must improve the mechanisms and institutions to form new relations between industry and agriculture and between urban and rural areas in which industry promotes agriculture, urban areas support rural development, agriculture and industry operate for each other’s benefit, and there is integrated urban and rural development, so that the overwhelming majority of rural people can participate in the modernization process on an equal basis and share the fruits of modernization.

The Decision proposes reform measures to improve the mechanisms and institutions for the integrated development of urban and rural areas: 

One, accelerating the building of new agricultural operation systems. Among other measures, we will maintain the fundamental status of the household operation in agriculture; encourage the transfer of the rights to contract and utilize farmland to large, specialized operators, family farms, farmers’ cooperatives and agribusinesses; encourage rural areas to develop cooperative economies; encourage and guide industrial and commercial capital to invest in rural areas to develop modern planting and breeding industries suited to commercialized management; encourage farmers to develop commercialized operations by becoming shareholders using their rights to contract and utilize farmland. 

Two, endowing farmers with more property rights. We will protect farmers’ rights to contract and utilize farmland by law, safeguard the rights and interests of farmers as members of collective economic organizations, ensure rural households’ usufruct of their residential plots, and select several pilot areas to steadily and prudently press ahead with measures addressing the mortgage, guarantee, and transfer of farmers’ residential property rights. 

Three, promoting equal exchanges of factors of production and balanced allocation of public resources between urban and rural areas. We will: ensure that migrant workers receive equal pay for equal work, and that farmers have an equal share in the gains from added value of land; improve the agricultural insurance system; encourage investment in rural development, and permit enterprises and social organizations to start all kinds of undertakings in rural areas; make a balanced allocation of compulsory education resources between urban and rural areas, integrate the basic old-age pension and basic medical insurance systems of rural and non-working urban residents, and improve the balanced development of the minimum living allowance system in both urban and rural areas; steadily make basic urban public services available to all permanent residents in cities, and incorporate farmers who have settled in urban areas into the urban housing and social security network.

Fifth, promoting wide, multitiered and institutionalized consultative democracy. Consultative democracy is a unique form and distinctive strength of China’s socialist democracy, and an important embodiment of the Party’s mass line in the political field. Promoting consultative democracy is essential to improving the people’s orderly participation in political affairs, strengthening the ties between the Party and the people, and promoting sound and democratic decision-making.

Promoting wide, multitiered and institutionalized consultative democracy is an important issue of political restructuring as stipulated in the Decision. The Decision emphasizes that under the leadership of the Party, China will promote consultation throughout society with regard to major issues of economic and social development and practical issues closely related to the interests of the people, and will sustain the principle of consultation before policy-making and during policy implementation. We will build a consultative democracy featuring appropriate procedures and complete mechanisms to expand the consultation channels covering agencies of state power, committees of the Chinese People’s Political Consultative Conference (CPPCC), political parties, and community-level and social organizations. We will conduct intensive consultations on issues relating to legislation, administration, democracy, political participation, and social problems. We will capitalize on the important role of the united front in consultative democracy, have the CPPCC serve as a major channel for conducting consultative democracy, and improve the operating systems of the CPPCC. We will specify the content and procedures for consultation, establish diverse forms of consultative democracy, and carry out more active and orderly consultations on particular issues with those working on these issues, with representatives from all sectors of society, and with the relevant government departments on the handling of proposals. And finally, we will increase the frequency of consultations to improve their effectiveness.

Sixth, reforming the judiciary and its operating mechanisms. The judiciary is an important component of the political system. Miscarriages of justice have been a major public concern in recent years, and the judiciary suffers from a lack of credibility largely due to the defects in its current systems and operating mechanisms.

Judicial reform is one of the key aspects of further reform. The Decision proposes a series of new and related measures: reforming the judicial management system, unification of the management of staff, funds and properties of courts and procuratorates at and below the provincial level; investigating means to establish a judicial jurisdiction system that is appropriately separated from the administrative divisions; improving the mechanism for the use of judicial power; strengthening the responsibility system for handling cases by the presiding judge and the collegiate bench, under which the judges will hand down verdicts and the collegiate bench will be held accountable for the verdicts; strictly regulating the procedures of sentence commutation, release on parole and medical parole; improving the accountability system and the mechanism for preventing and correcting erroneous judgments, and strict implementation of the rule banning illegal evidence; establishing a system for settling complaints involving law violations and lawsuits made in the form of letters and visits in accordance with the law; abolishing the re-education through labor system, and improving laws for the punishment and correction of unlawful and criminal acts.

These measures are of vital importance in ensuring that judicial departments independently exercise their judicial and procuratorial powers in accordance with the law, in improving the operating mechanism of judicial power by clarifying rights and responsibilities, in improving judicial transparency and credibility, and in safeguarding human rights.

Seventh, improving leading and working mechanisms in the battle against corruption. Fighting corruption has always been a widely discussed topic inside and outside the Party. We now face three main challenges: decentralized anti-corruption agencies make it difficult to build up synergy; some cases are not dealt with resolutely; the accountability system is too lax to handle reoccurring cases of corruption. 

The Decision lays out plans for innovation in our anti-corruption mechanisms and institutions, and for strengthening institutional guarantees. The main points are: strengthening the Party’s unified leadership to improve Party conduct, build clean government, and combat corruption; ensuring that Party committees bear primary responsibility and the commissions for discipline inspection take the responsibility for oversight, and working out and implementing a feasible accountability system; improving the leading and working mechanisms for anti-corruption efforts, reforming and improving the functions of anti-corruption coordination groups at all levels, and placing the investigation of corruption cases mainly under the leadership of commissions for discipline inspection at the next level up; strengthening the leadership role of the higher levels over the lower levels of discipline inspection commissions, and the simultaneous reporting of the related investigation process to the Party committee at the same level and the commission for discipline inspection at the next level up; ensuring that the Central Commission for Discipline Inspection dispatches resident discipline inspection agencies to the central-level departments of the Party and the government; improving the discipline inspection system at both central and local levels, so that it covers all regions, all sectors, all enterprises and all public institutions.

All these measures are based on past experience and the suggestions of various groups and individuals.

Eighth, improving the leadership over internet management. Cybersecurity and information security bear on national security and social stability, and pose many new challenges for us.

Falling behind the rapid development of internet technology and applications, our current management of the internet is seriously flawed and cannot function properly. Different administrative bodies engaged in multi-channel management of the internet, overlapping functions and mismatch between powers and responsibilities – all these have led to inefficient management. Also, as the internet fulfils more and more media functions, the management of online media and the industry is lagging far behind the changing circumstances. With rapid growth in the number of users of micro-blogs, WeChat and other social network services, and instant communication tools, which spread information quickly over wide areas and can mobilize large numbers of users, we face two pressing problems: How do we strengthen oversight within a legal framework and guide public opinion? And how do we ensure the orderly dissemination of online information, while at the same time safeguarding national security and social stability?

The Decision stipulates that we must adhere to the principles of proactive usage, well-planned development, ensuring safety while strengthening management, and accelerating the improvement of the leadership over internet management. Our goals are to integrate the functions of the related departments, form joint forces in the management over the internet covering both technology and content, and ensure correct and safe internet usage in fields ranging from daily security to combating crimes.

Ninth, establishing the Commission for National Security. National security and social stability form the basis for further reform and progress. Currently we are challenged by pressure from two sources. On the international front we must safeguard sovereignty, security, and development interests, and on the domestic front we must maintain political and social stability. All manner of foreseeable and unforeseeable risks are increasing significantly, and our security system is not strong enough to respond. We must establish a strong platform to coordinate our national security work. Establishing the Commission for National Security to strengthen unified leadership over national security at the central level has become an urgent means to this end.

The main responsibilities of the Commission for National Security are to formulate and implement national security strategies, promote national security legislation, design principles and policies for national security work, and study and resolve key issues concerning national security.

Tenth, improving the country’s management and oversight systems for natural resources. Developing the property rights system for natural resources is an important reform. It is also an intrinsic requirement for building an eco-friendly country with complete support systems.

Some of our major frustrations in eco-environmental protection are caused in part by problems in the eco-environmental management system. One problem lies in the vague concept of ownership of natural resources by the whole people, which leads to problems in ensuring the rights and interests of the owners. To solve this problem, the Decision proposes measures for improving the natural resource management system. The guiding thoughts are ensuring people’s property rights to natural resources in accordance with the principle of separation between ownership and management, assigning one issue to one department, and establishing a unified responsibility mechanism for people who manage public natural resource assets on behalf of the public.

The state’s exercise of power and management over the natural resource assets owned by the whole people is distinct from the state’s supervision and management of the natural resources within its territory. The former is the owner’s right, while the latter is the manager’s right. This requires us to improve the system of oversight of natural resources, and fulfill our duties as the managers of our territorial space. The owners of state-owned natural resource assets and the managers of state natural resources must act independently, while cooperating with and supervising each other.

We need to realize that our mountains, waters, forests and farmlands form a community of life. The lifeline of the people comes from the farmland, that of the farmland comes from the water, that of the water comes from the mountain, that of the mountain comes from the earth, and that of the earth comes from the tree. To control the exploitation of natural resources and restore ecosystems, we must follow the laws of nature. If people tend only to their own individual responsibilities, for example, growing trees, regulating rivers, or protecting farmland in isolation, there is a risk of gaining in one area and losing in another, which eventually leads to systemic destruction of the eco-environment. Therefore, it is of the utmost importance to put one department in charge of the usage of the entire territory of the country, and carry out unified protection and restoration programs for its natural resources.

Eleventh, establishing the Leading Group for Further Reform under the CPC Central Committee. Making comprehensive progress towards further reform is a complex undertaking, which requires the participation of more than one, or even several departments. Therefore, leadership at a higher level should be established for this purpose.

The Decision stipulates that the Party Central Committee will set up a Leading Group for Further Reform. This is designed to make better use of the Party’s core function as a leader with a picture of the overall situation, and as chief coordinator of different elements, so as to ensure that reform progresses smoothly and that the assigned tasks are implemented as planned. The main responsibilities of this leading group are planning key national reforms, coordinating reforms in various fields, mobilizing various forces into a combined force for reform, strengthening supervision and oversight, and ensuring full implementation of the reform’s tasks and achievement of its goals.

III. Matters That Require Attention in Discussion

The task of this plenary session is to discuss the guiding thoughts and plans for further comprehensive reform as proposed in the Decision. For the discussion, please bear the following in mind:

First, we must be more confident and courageous in pressing ahead with reform. Reform and opening up is a great new revolution of the Chinese people led by our Party in the new era. It is the most outstanding characteristic of contemporary China, and the distinguishing characteristic of our Party. What has helped our Party inspire the people, build a consensus, and pool their strengths over the past 35 years? What have we been relying on to stimulate the creativity and vitality of our people, realize rapid economic and social development and gain competitive advantage over capitalism? The answer has always been reform and opening up.

Looking to the future, there is no alternative to further reform and opening up if we are to defuse risks, respond to challenges, resolve all manner of difficult problems hindering our development, capitalize on the strengths of socialism with Chinese characteristics, and promote steady and healthy social and economic development.

At the current stage, close attention to our drive for reform and opening up comes from inside and outside the Party, and from inside and outside the country as well. The entire Party and all sectors of society have built high expectations. Our reform has come to a critical juncture. We must not waver in the slightest degree, and we must continue to uphold our firm commitment to the correct path of socialism with Chinese characteristics. The whole Party must reaffirm our conviction to advance reform with greater political courage and wisdom, applying stronger measures and methods.

Second, we must continue to free our minds and seek truth from facts. To keep our banner of reform and opening up flying high, we must follow strong convictions with pragmatic measures. Actions speak louder than words. The decision to make overall plans for further comprehensive reform at its Third Plenary Session was a strategic choice for the 18th CPC Central Committee. We must take this opportunity to make new breakthroughs in our reform. For this to happen, we need to further free our minds.

In breaking down the barriers of outdated thinking and vested interests, freeing the mind is the first and most important step. Often, the roadblocks in our minds that hinder reform do not come from outside the system, but from within. If our minds are not freed we will struggle to see the crux of our problems with vested interests, or pinpoint the direction of our effort to break down barriers. We will also find it difficult to come up with innovative reform measures. Therefore, we must have the courage and breadth of vision to seek self-improvement. We need to throw off the trammels of outdated ideas, overcome the constraints put in place by various departments to further their own interests, conduct proactive research, and propose effective reform measures.

Before proposing a measure, we must research and discuss it carefully, but this does not mean being overcautious, or hesitating to try anything new. It is not possible to carry out reform while keeping our current work patterns and operation systems intact, nor is it possible to do it in a rock-steady or risk-free manner. As long as we have done thorough research and appraisal, and are sure that our actions are necessary and address the actual conditions, we can forge ahead without looking back.

Third, we must put the interests of the state first in our deliberations. Further comprehensive reform is a major strategy that impacts on the overall development of the Party and the state, rather than a single program to reform a certain aspect of an individual sector. “One who fails to plan for the whole situation is incapable of planning for a part.” You come from different departments and units, and you must see things from the broadest perspective. For major decisions, first we should judge whether a proposed reform measure meets the needs of the country, and whether it is conducive to the long-term development of the cause of the Party and the state. We must think beyond the times, strive to look forward into the future, and draw up proactive plans. This will enable us to drive through reform measures that will genuinely promote the cause of the Party and the people.

We should strengthen top-level planning and adopt a holistic approach. We should study more intensively the cohesion, consistency, and feasibility of our reform measures. As we say, “We must push reform forward boldly and steadily.” Here “steadily” means adopting a holistic approach in planning, conducting overall research, and making rational decisions. Reforms in the economy, politics, culture, society and the eco-environment are closely connected to and integrated with reform of the Party. Reform in one sector will always affect other sectors and require other sectors to reform accordingly. If reforms in different areas do not support each other, and the measures taken in some sectors turn out to check the progress of other sectors, we will find it difficult to further our comprehensive reform; disregard these factors, and we will find ourselves in disarray.

* Speech at the Third Plenary Session of the 18th CPC Central Committee.

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