News from china.com.cn on November 11th (Reporter Guo Zehan, editor Jiang Xinyu): In Article 1 of the Chapter “Accelerating the Creation of a New Development Pattern and Pursuing High-Quality Development” of the Report of the Party's 20th National Congress proposes to build a high-standard socialist market economy, which shows the importance of building a high-standard socialist market economy to the primary task of promoting high-quality development. On November 9, Prof. Tao Yitao, Director of China Center for Special Economic Zone Research (CCSEZR), Shenzhen University, delivered a keynote speech on "High-Quality Development and the Building of a Socialist Market Economic System" at the workshop series “In-depth Study of the Spirit of the 20th CPC National Congress” launched by the Journal, Practice and Theory of SEZs, of the Party School of the CPC Shenzhen Municipal Committee.
Prof. Tao Yitao believed that building a high-standard socialist market economy is the foundation for promoting high-quality development. That is to say, building a high-standard socialist market economic system is a pivotal part of high-quality development, and this system in return offers an indispensable institutional environment for high-quality development. A system needs to work in an institutional environment. High-quality development is our goal, while a high-level socialist market economy system serves as both the goal and the institutional environment to achieve it.
The market economy builds on the highly developed commodity economy, and the resource allocation of the whole society is based on the function of the market mechanism. The Report of the 20th National Congress of the CPC especially emphasized that high-quality development is the overarching task of comprehensively building a modern socialist country, for without solid material, we cannot hope to build a great modern socialist country in all respects. Therefore, we must continue reforms to develop the socialist market economy, promote high-standard opening-up, and step up efforts to foster a new pattern of development that is focused on the domestic economy and features positive interplay between domestic and international economic flows.
Prof. Tao stated that these remarks are a great summary and profound reflection on the reasons why China has made great achievements in the past 40 years of reform and opening-up. Without the improvement of the market economic system and the economic development, it is impossible to create wealth and realize the material foundation of a modern power. Likewise, without high-standard opening-up and international vision, there will be no institutional guarantee for the implementation of the dual circulation development pattern. In other words, without an institutional and cultural environment that encourages innovation, there can be no technological progress and inventions.
Prof. Tao pointed out that, as emphasized in the Report of the 20th National Congress of the CPC, “We will work to see that the market plays the decisive role in resource allocation and that the government better plays its role” is a feature of the socialist market economy with Chinese characteristics. Giving full play to the decisive role of the market in resource allocation means that following the rules of the market is a basic principle of the socialist economic system with Chinese characteristics. Therefore, while stressing the importance of making state-owned capital and enterprises get stronger, do better, and grow bigger, the Report also stresses providing an enabling environment for private enterprises, protecting their property rights and the rights and interests of entrepreneurs in accordance with the law, and facilitating the growth of the private sector.
Prof. Tao explained that the creation of a new development pattern includes both high-quality development and high-standard opening-up. If we see the new development pattern as the strategic deployment in the new era, then high-quality development is the core of this strategic deployment, and high-standard opening-up, an important practice path for this strategic deployment. Prof. Tao believed that the new development pattern stems from the rapid socio-economic development and the fundamental improvement of China's national strength and from the accumulation of capital, technology and material wealth over the past 40 years of reform and opening-up. Fundamentally, since China's reform and opening-up, internal and external circulation have been closely related and co-existing in a unified economy. On account of this powerful external circulation, the internal circulation of such a scope and great achievement in Chinese society today has been achieved. Therefore, the focus on the domestic economy is neither a denial of international trade nor a denial of external circulation, rather it is a new strategic deployment proposed along with the gradual formation of the modern industrial system on the basis of the continuous optimization of the economic structure. In a sense, this is the continuation of the reform and opening-up policy, and also the strategic expansion and deepening of the policy in the new era and new situation.
Prof. Tao indicated that the construction between domestic and international economic flows pattern and the realization of a higher level of opening-up will turbocharge a sound and high-standard socialist market economy system. In this sense, accelerating efforts to foster a new pattern of development that tilts towards the domestic economy and features positive interplay between domestic and international economic flows is to transform the advantages of China's large market size and the gradually competitive production system into the institutional advantages of participating in international cooperation and competition, so as to gain international competitiveness composed of institutional capital. In essence, the process of implementing high-standard opening-up is to complete the deepening reform process from policy opening-up to institutional opening-up, from an export-oriented economy to an open economy.
According to Prof. Tao, our efforts, be it high-quality development, high-standard opening-up or building a new development pattern, all work for achieving common prosperity for all. As pointed out in the Report of the Party's 20th National Congress, Chinese modernization is the modernization of common prosperity for all; therefore, the general improvement of happiness and the sense of fulfillment for our people is the real connotation of high-quality development, and also the prerequisite strengthening our confidence in the path and system. Socialist modernization bounds to be a process in which everyone shares the fruits of social development and is bestowed with freedom and incentive to create wealth. We must ensure and improve the people’s well-being in the course of pursuing development and encourage everyone to work hard together to meet the people’s aspirations for a better life.
(This article is reproduced from china.com.cn on November 11, 2022.)
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