Mo Gaoyi:

Thank you, Mr. Mu. Now, I would like to invite Mr. Han Wenxiu to introduce the reform efforts in the areas of the economy and people’s wellbeing. 

Han Wenxiu:

Good morning, everyone. General Secretary Xi Jinping pointed out that, to further deepen reform comprehensively, we should regard economic structural reform as the spearhead and greater social fairness and justice and improvements in the people's wellbeing as our ultimate objectives. Approved at the third plenary session of the 20th CPC Central Committee, the resolution insists that high-quality development is the primary task in building China into a modern socialist country in all respects, and makes comprehensive arrangements for reforms in areas of the economy and people’s wellbeing, which carry significant weight. I would like to give my introduction from seven aspects.

First, we will build a high-standard socialist market economy. The resolution stresses that we must better leverage the role of the market, foster a fairer and more dynamic market environment, and unleash the internal driving forces and creativity of our society as a whole. We will work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide the development of the non-public sector, thus enabling entities under different forms of ownership to complement each other and develop side by side. On the one hand, we will deepen reform of state-owned capital and state-owned enterprises (SOEs); work to allow state-owned capital and enterprises to get stronger, do better, and grow bigger; and enhance their core functions, and increase their core competitiveness. We will conduct the accounting work of the added value of the state-owned economy, and build SOEs into a cradle of original technological innovations. We will also encourage industries, such as energy and railways, to promote independent operation in sectors of natural monopoly and advance market-oriented reform in competitive areas. On the other hand, we will create an enabling environment and provide more opportunities for the development of the non-public sector. We will improve the long-term mechanisms for private enterprises to participate in major national projects, support private enterprises with distinctive strengths in leading the development of major national technologies, and regulate administrative inspections involving private enterprises. The most favorable business environment relies on the rule of law. We will formulate and issue a law on promoting the non-public sector. The resolution emphasizes encouraging entrepreneurship, and moving faster to help more Chinese companies become world-class, which is a common requirement for all forms of business entities.

Accelerating the development of a high-standard market system is a major reform task. The resolution has identified three key reform measures. First, it aims to build a unified national market. This includes establishing a unified urban-rural construction land market, building a nationwide integrated technology and data market, developing a standardized and information-sharing platform for bidding and public resource transactions, implementing cohesive circulation rules and standards, and forming an integrated national electricity market. Second, it aims to advance reforms for the market-based allocation of production factors by improving the systems and rules governing labor, capital, land, knowledge, technology, management and data. Third, it seeks to refine the systems underpinning the market economy. This includes improving mechanisms for property rights protection, information disclosure, market access, bankruptcy exit, and credit supervision. The market economy is essentially a law-based economy. The resolution emphasizes preventing and rectifying the use of administrative means or criminal law to interfere with economic disputes. It also stresses that the violations of property rights and legitimate interests across all forms of ownership are subject to equal responsibility, penalties and legal consequences.

Second, we will improve the institutions and mechanisms for promoting high-quality development. General Secretary Xi Jinping has creatively proposed the development of new quality productive forces in light of local conditions. This represents a significant theoretical and practical innovation that will inject new momentum into high-quality development. The resolution calls for accelerating the formation of production relations that are more compatible with new quality productive forces, enhancing mechanisms for optimizing and upgrading traditional industries, refining policies and governance systems for strategic industries, establishing mechanisms to boost funding in future industries, and improving policy frameworks for digital industrialization and industrial digitization. It aims to encourage the concentration of advanced production factors toward developing new quality productive forces and significantly increase total factor productivity. The resolution emphasizes the need to fully integrate the real economy with the digital economy, develop the modern services sector, modernize infrastructure, and enhance the resilience and security of industrial and supply chains. All of these are intrinsic requirements for achieving high-quality development.

Third, we will improve macroeconomic governance. The resolution calls for building planning and implementation mechanisms for national strategies, improving national economic and social development planning system, while also deepening the reform of fiscal, taxation and financial systems and enhancing the consistency of macro policy orientation. It calls for the establishment of new mechanisms for cross-regional cooperation and development. Addressing the financial difficulties of local governments and grassroots levels, the resolution proposes improving the fiscal relationship between central and local governments. This includes boosting local financial autonomy, expanding local tax sources, enhancing the alignment of financial resources and responsibilities at the municipal and county levels, appropriately increasing central responsibilities, raising the proportion of central fiscal expenditure, and prohibiting unjustified demands for local governments to provide matching funds. Additionally, research should be conducted into tax systems that are compatible with new business formats. After more than 40 years of rapid development, our country's social wealth has continuously accumulated. The resolution calls for exploring the implementation of national balance sheet management to optimize the adjustment of various asset structures.

Fourth, we will improve the institutions and mechanisms for promoting integrated urban-rural development. General Secretary Xi Jinping emphasized that we must pursue integrated urban-rural development for the rural revitalization strategy to be successful. Focusing on promoting people-centered new urbanization, the resolution proposes implementing a system where basic public services are provided based on household registration at the place of permanent residence, and accelerating the process of granting urban residency to rural migrants. In order to continuously consolidate and expand the achievements of poverty alleviation, and strengthen agriculture, benefit farmers, and enrich rural areas, the resolution proposes improving the regular mechanism to prevent rural populations from falling back into poverty, establishing a tiered and categorized support system for low-income rural populations and underdeveloped areas, coordinating the establishment of a trans-provincial compensation mechanism between grain-producing and grain-consuming regions, improving the funding mechanism for rural revitalization, and fostering new industries and new business formats in rural areas.

Fifth, we will promote high-standard opening up. The resolution calls for proactively aligning with high-standard international economic and trade rules, steadily expanding institutional opening up, and developing new mechanisms for a higher-standard open economy. It proposes expanding unilateral openness to the least developed countries and increasing independent opening up. It also calls for the orderly expansion of the openness of goods, services, capital and labor markets. Additionally, the resolution proposes improving systems to provide more convenience for people from overseas to live, seek medical services and make payments in China. The resolution also calls for coordinating the advancement of major landmark projects and "small yet impactful" livelihood projects, promoting high-quality cooperation under the Belt and Road Initiative, and turning China's vast market into an excellent opportunity for the world.

Sixth, we will refine the systems to ensure and improve the people's well-being. The resolution emphasizes that reforms should focus on what the people care about and expect. It stresses improving mechanisms for promoting high-quality and full employment, enhancing social security systems for flexible workers, migrant workers and those in new employment forms, promoting the expansion and distribution of high-quality medical resources, advancing the development of a childrearing-friendly society, and refining policies and mechanisms for the development of elderly care services and industries. Effectively implementing these measures will undoubtedly further enhance the public's sense of gain, happiness and security.

Seventh, we will deepen reforms in ecological conservation. Chinese modernization is the modernization of harmony between humanity and nature. The resolution emphasizes the need to accelerate the improvement and implementation of mechanisms and systems that embody the principle that "lucid waters and lush mountains are invaluable assets," while calling for establishing mechanisms to realize the value of ecological products. The resolution also underscores the planning and construction of a new energy system, and developing a carbon accounting and verification system, a product carbon labeling and certification system, and a product carbon footprint management system. These measures aim to better promote green, low-carbon, and circular development. In summary, the resolution has outlined substantial, practical, and highly valuable reforms in the economic and livelihood sectors. We must ensure these reforms are effectively implemented. Thank you!

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