Major Theoretical and Practical Issues in Deeper Comprehensive Reform

Major Theoretical and Practical Issues in Deeper Comprehensive Reform*

October 29, 2024

The CPC Central Committee has organized this study session for principal officials at the provincial and ministerial level. The goals are to achieve greater unity in thinking and action, and to ensure more effective implementation of the decisions of the Third Plenary Session of the 20th CPC Central Committee. Here, I would like to share with you my views on the major theoretical and practical issues we face in driving deeper comprehensive reform.

I. Historic Achievements in Deeper Comprehensive Reform in the New Era

The Third Plenary Session of the 18th CPC Central Committee in 2013 marked the start of a new journey for China to drive deeper comprehensive reform in the new era with a systematic and holistic blueprint. It was of epoch-making significance as it delivered new prospects for our country’s reform and opening up. Deeper all-round reform has generated substantive results in theory and practice, and in institutional structures and processes. These results have captured global attention and created a far-reaching impact.

Deeper comprehensive reform in the new era has achieved significant practical outcomes. Reform drives development, boosts vitality, and builds synergy. Our new development philosophy came from reform; the outdated mindsets and institutional barriers that once hindered high-quality development have been removed through reform; and effective upgrading and appropriate expansion of our economy have been achieved step by step during reform.

It is precisely through deeper all-round reform that our economic strength, scientific and technological strength, and composite national strength have reached new heights. China’s GDP increased from RMB54 trillion in 2012 to RMB126 trillion in 2023 and China’s share of the global economy increased from 11.3 percent to around 18 percent over the same period. We have solidified our position as the world’s second largest economy, contributing an annual average of more than 30 percent to global economic growth. Our per capita GDP now stands at US$12,680. The country’s capacity for scientific and technological innovation has increased markedly, placing it among the ranks of global innovators.

In the fight against poverty, China has achieved a historic victory in eradicating absolute poverty. It has built the world’s most extensive systems of education, social security, and health care, and made solid steps towards common prosperity for all, as manifested in an increasing quality of life and a growing sense of gain, fulfillment and security among its people. It is precisely through deeper all-round reform that we have made remarkable progress in advancing the rule of law, building an eco-civilization, safeguarding national security, and strengthening national defense and the armed forces.

Deeper comprehensive reform in the new era has notably improved our institutional framework. The overall objectives of reform are to improve and develop the system of socialism with Chinese characteristics and to modernize China’s system and capacity for governance. This requires us to consolidate our foundations, leverage our strengths, buttress our areas of weakness, and build up the institutional and competitive strengths of Chinese socialism.

We have continued to add new dimensions to our institutional framework, optimizing our institutional structures and processes. Our fundamental, basic and important systems are now more complete, and in particular CPC leadership has been confirmed as the core element of our country’s leadership system. These systems work under a well-conceived, procedure-based and effective framework, and are becoming more mature and better-defined. We have reinforced their application and turned institutional strengths into effective national governance. Our efforts are not directed only to short-term effects, but more importantly to the lasting peace and security of the nation.

Deeper comprehensive reform in the new era has delivered major theoretical breakthroughs. The decision to drive deeper all-round reform was made and implemented at a time when our reform was entering a critical stage and uncharted waters, characterized by daunting challenges across a wide range of fields, deep impact on vested interests, and a complex interplay of numerous factors. To advance theoretical innovation in the course of reform, we have developed a sound grasp of current developments and future trends in reform, and of the risks and opportunities they present. We have also reviewed every new experience in a timely manner. With an increasing understanding of reform dynamics, we have introduced new ideas, perspectives and visions on deeper all-round reform, including:
• upholding CPC leadership;
• upholding a people-centered approach;
• upholding fundamental principles and breaking new ground, neither regressing to rigidity and isolation nor abandoning our socialist system;
• improving and developing the Chinese socialist system, and modernizing China’s governance system and capacity;
• taking a problem-oriented approach;
• letting economic structural reform play a driving role;
• advancing reform under the rule of law;
• integrating top-level design with pilot reform measures;
• balancing reform, development and stability.

The Six Principles outlined in the Resolution of the CPC Central Committee on Driving Deeper Comprehensive Reform to Advance Chinese Modernization adopted at the plenary session have been drawn from these breakthroughs. They provide important guidance for further reform.

In summary, deeper comprehensive reform in the new era is a brilliant chapter in China’s reform and opening up. It has provided strong impetus and institutional support for achieving moderate prosperity in all respects and extending the remarkable success of maintaining rapid economic growth and long-term social stability. It also lays solid foundations and provides valuable experience for deeper all-round reform on our new journey ahead.

II. Commitment to Upholding Fundamental Principles and Breaking New Ground in Deeper Comprehensive Reform

Upholding fundamental principles and breaking new ground is a key guideline that we must always respect in driving deeper comprehensive reform. The two aspects form a dialectical unity — the former keeps the latter on the right track, while the latter reinforces the former.

Reform does not mean abandoning our socialist system. I have mentioned on many occasions that our reform has a clear direction and follows unequivocal principles, including upholding overall CPC leadership, Marxism, Chinese socialism, and the people’s democratic dictatorship, and working for the fundamental goals of promoting social fairness and justice and improving the people’s wellbeing. These principles play a decisive, directive and far-reaching role in advancing our reform; they demonstrate our Party’s nature and purpose, they are aligned with China’s realities, and they serve the people’s fundamental interests. Therefore, we shall never deviate from them at any time or under any circumstances. Rather, we must focus on the overall objectives of improving and developing the Chinese socialist system and modernizing China’s governance system and capacity. We must always drive reform towards these objectives, changing what should be changed and maintaining what should be maintained.

On our new journey in the new era, the central task of the Party and the country is to build China into a great country and advance national rejuvenation through Chinese modernization. Our deeper all-round reform must also focus on this central task. With indomitable resolve and courage, we should keep pace with the new trends of our times, respond to new requirements for development, and fulfill the new expectations of our people. We should boost innovations in theory, practice, culture, institutional structures and processes, and all other respects, as this provides strong impetus and institutional support for Chinese modernization.

We should prioritize economic structural reform. We must remain committed to the goal of developing the socialist market economy, give full play to the decisive role of the market in resource allocation, and better leverage the role of the government. We should accelerate the development of a unified national market and a complete macro­economic governance system. We will consolidate and develop the public sector and at the same time encourage, support and guide the development of the non-public sector, and create a fair and just environment where all forms of ownership can develop under the rule of law. We must remove the institutional barriers that hinder high-quality development, adapt relations of production to new quality productive forces, and foster new drivers and strengths for development. We should remove the bottlenecks that choke all-round innovation, promote integrated institutional reform in education, sci-tech and talent development, and seize strategic opportunities for leveraging the new revolution in science, technology and industry.

We should coordinate reform on all fronts. Chinese modernization is a broad concept, and accordingly, deeper reform must also be all-dimensional. The Resolution emphasizes systems thinking — coordinating the planning and implementation of reform initiatives under the framework of the Five-sphere Integrated Plan and the Four-pronged Comprehensive Strategy. Such a holistic approach not only gives weight to economic structural reform, but also encompasses institutional innovation in democracy, the rule of law, culture, society, eco-civilization, national security, defense, and the military, as well as institutional reform for strengthening the Party. We must implement the reform initiatives in an all-round manner to create greater synergy, rather than emphasizing one at the expense of others, or attending to some aspects while losing sight of others.

III. Appropriate Approaches to Guiding and Advancing Reform

Reform is a systematic project that requires an appropriate approach to striking a balance among all factors. The Resolution has set specific requirements in this regard. I would like to highlight a few points.

First, the unity of reform and the rule of law. The two are inter-dependent and indispensable, like the two wings of a bird or the two wheels of a cart. We should strengthen the rule of law through reform, expand reform in law-based governance, and continue to improve the system of socialist rule of law with Chinese characteristics. We should better leverage the role of the rule of law in removing obstacles to reform and consolidating the outcomes already achieved. We should employ law-based thinking and approaches to advance reform, safeguard the authority of the rule of law, and guarantee a solid legal basis for major reforms. We should ensure that all are equal before the law, and provide equal protection for the legitimate rights and interests of citizens, legal persons, and organizations. We must avoid selective law enforcement and leniency beyond the scope of law.

Second, the unity of abolishing the old and establishing the new. Reform is a dual process where the former serves as the means and the latter as the goal. In driving deeper comprehensive reform, we should focus on strengthening our institutions, give equal weight to abolishing the old and establishing the new, and ensure that new systems are already in place before old ones are retired. All our reform initiatives must be subject to thorough research, meticulous design, and discreet risk assessment, to ensure the right timing and intensity for the best results. We should be proactive in establishing new institutions where necessary, and ensure that they are well-grounded, functional and effective. On this basis, we should decommission outdated institutions resolutely and thoroughly when the time is right. By balancing the two efforts, we can ensure that our reform proceeds steadily and efficiently. We must not discard old institutions without new ones in place, as any institutional gap could result in confusion or even chaos.

Third, the unity of reform and opening up. Deeper all-round reform and high-standard opening up are complementary and mutually reinforcing. Deeper reform requires higher-standard opening up, and higher-standard opening up gives stronger impetus to reform. We should steadily expand institutional opening up, promote active alignment with the most demanding international economic and trade rules, expand institutional reform in the management of foreign trade and inward and outward investment, and foster a world-class business environment that is market-oriented, law-based and internationalized. We should implement the strategy for upgrading pilot free trade zones, encourage pioneering and integrated experimentation, and create new pacesetters in reform and opening up that raise the standards of opening up and generate greater impact.

Fourth, the unity of planning and implementation. Success is 10 percent planning and 90 percent implementation. The plans outlined in the Resolution mostly focus on the broader picture, and many of the reform initiatives are strategic plans setting the direction for the future, which require us to draw up specific measures that are feasible and effective for implementation. In designing reform programs, we must follow the objective laws of development, promote democracy, and meet public expectations. We should coordinate the reform measures, ensure that they are oriented in the same direction, and prevent and overcome the silo mentality. To promote full and effective implementation of reform initiatives, we should put in place sound mechanisms that have clear delineation of responsibilities, encompass the entire process of implementation, and guarantee close coordination of all links, and we should also strengthen follow-up evaluations. We must guard against favoring planning over action, and prevent reform from losing steam due to inconsistent implementation.

Leading officials, especially senior officials, shoulder the weighty responsibility of advancing reform. You should have a stronger sense of political responsibility and mission, and an unflinching courage to meet challenges head-on. You should be bold in confronting tough issues, resolute in eradicating deep-seated problems, and determined in addressing risks and challenges, working hard to open new prospects for reform and opening up. You should employ appropriate approaches to advancing reform, ensure systematic planning, and act on well-conceived plans, to avoid being caught in a dilemma as a result of reckless actions.

IV. A Favorable Environment for Deeper Comprehensive Reform

Building broad consensus and mobilizing all positive factors are crucial for achieving success in further reform. To this end, we should inspire the public to support our reform initiatives by amplifying the theme of reform and promoting positive energy.

We should ensure that the decisions of the Resolution are correctly understood and interpreted. In the three months since the plenary session, all provincial authorities and central departments have organized in-depth study of the decisions adopted at the plenary session in various forms and through multiple channels, which has generated great enthusiasm. Next, we should continue our studies and focus on an accurate understanding of the decisions and a thorough grasp of their essence. We need to strengthen research into and interpretation of some major theories and viewpoints proposed in the decisions, and in particular, reinforce public communication to promptly clarify and remedy misinterpretations and distortions, and to help the people correctly understand the strategic considerations of the Central Committee and the practical significance and strategic objectives of all reform initiatives. Our goal is to build broad consensus and secure strong popular support for reform across the Party and throughout society.

We should guide reasonable expectations of reform. On the one hand, reform is a process of rebalancing diverse interests, which cannot simultaneously satisfy all demands. We should guide our officials and the people to think in terms of the general picture, understand the weighing of competing interests, and take a rational view of personal gains and losses. Reform is an incremental process, and all problems cannot be resolved overnight. We shall not seek instant successes, set unattainable goals, or encourage unrealistic expectations; rather, we will seek truth from facts, base all our actions on reality, pursue steady progress, and build on small victories to achieve great goals. On the other hand, reform is the responsibility of all the people and requires their collective participation to tackle challenges. In the reform process, we should always put the people first, evaluate reform based on practical results and public satisfaction, and ensure that it provides the people with a greater sense of gain, fulfillment and security.

We should maintain the right tone in public communication to promote reform. We should galvanize public opinion, increase positive news coverage, effectively communicate the landmark successes of reform, and demonstrate the value of reform to ordinary people by showing how it benefits their everyday lives. We should track and respond to public concerns, and provide timely answers to questions. We should resolutely refute erroneous assertions, distinguish truth from falsehood, and ensure a correct public understanding of reform.

* Main part of the speech at a study session on implementing the decisions of the Third Plenary Session of the 20th CPC Central Committee, attended by principal officials at the provincial and ministerial level.

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