The Theoretical Significance and Practical Requirements of Being Both "Able to Enliven" and "Able to Govern"

The Third Plenary Session of the 20th Central Committee of the CPC proposed: "A high-level socialist market economy system is an important guarantee for Chinese-path modernization. It is necessary to better leverage the role of the market mechanism, create a fairer and more dynamic market environment, achieve optimal allocation efficiency and maximum benefit of resources, be both 'able to enliven' and 'able to govern', better maintain market order and remedy market failures, smooth the national economic cycle, and stimulate the endogenous driving force and innovation vitality of the whole society." [1]1 "Spirit of driving nails" (钉钉子精神) is a metaphor used by Xi Jinping to describe the need for persistence and precision in implementing reforms, likening each reform task to a nail that must be driven in firmly and accurately. Being both "able to enliven" and "able to govern" is a new formulation by the Party Central Committee in the context of further deepening reform comprehensively to build a high-level socialist market economy system. It needs to be considered, summarized, and resolved from the perspectives of theoretical significance, understanding of laws, and practical orientation.

党的二十届三中全会提出：“高水平社会主义市场经济体制是中国式现代化的重要保障。必须更好发挥市场机制作用，创造更加公平、更有活力的市场环境，实现资源配置效率最优化和效益最大化，既‘放得活’又‘管得住’，更好维护市场秩序、弥补市场失灵，通国民经济循环，激发全社会内生动力和创新活力。”既“放得活”又“管得住”，是党中央在进一步全面深化改革背景下构建高水平社会主义市场经济体制的新提法，需要从理论意义、规律认识、实践指向的角度去思考、去总结、去解决。

Deepening Theoretical Understanding

深化理论认识

Deepening the theoretical understanding of the socialist market economy should involve continuous innovation, summarization, and elevation as social practice develops. It should be placed within a long-term perspective and a broad scope, within a historical and global picture, to consider its scientific nature and effectiveness, and further develop and improve it in practice.

深化对社会主义市场经济的理论认识，应随着社会实践的发展不断创新、归纳和提高，长视角、宽范围地置于历史的、世界的图景下，思考其科学性和有效性，并进一步在实践中发展与完善。

Practice is the driving force for theoretical innovation and also an important criterion for testing the correctness of theoretical innovation achievements. Through a systematic summary of the practice and laws of the socialist market economy, and a profound insight into the actual behavior of the people pursuing a better life, the theory of the socialist market economy aims to summarize and explain, from the great practice of China's economic development, how China both leverages the strengths of the market economy and the superiority of the socialist system, thereby effectively preventing the drawbacks of the capitalist market economy.

实践是推动理论创新的动力，也是检验理论创新成果正确与否的重要标准。通过对社会主义市场经济实践及其规律的系统总结、对人民追求美好生活的现实行为的深刻洞察，社会主义市场经济理论旨在从中国经济发展伟大实践中，归纳和阐释中国是如何既发挥市场经济的长处，又发挥社会主义制度的优越性，从而有效防范资本主义市场经济的弊端。

Handling the relationship between "enlivening" and "governing" fully demonstrates the essence of "socialism" and the connotation of "market economy" in the socialist market economy. On the one hand, the socialist market economy is fundamentally still socialist in nature; the socialist system imposes certain constraints and influences on the market economy to overcome problems that the market itself may bring. On the other hand, the practical requirements for developing new quality productive forces, especially achieving revolutionary breakthroughs in technology, innovative allocation of production factors, and deep transformation and upgrading of industries, require the formation of new relations of production that are compatible with them. It is necessary to leverage the role of the market and promote the in-depth implementation of the innovation-driven development strategy through institutional innovation. Therefore, handling the relationship between "enlivening" and "governing" is a rational understanding formed in the process of perfecting the socialist market economy system, based on existing theoretical achievements and focusing on new practical explorations.

处理好“放”和“管”的关系，充分表现出社会主义市场经济之“社会主义”本质和“市场经济”内涵。一方面，社会主义市场经济从根本上仍是社会主义性质，社会主义制度对市场经济形成一定约束和影响，以克服市场本身可能带来的问题。另一方面，发展新质生产力的实践要求，特别是实现技术革命性突破、生产要素创新性配置、产业深度转型升级需要形成与之相适应的新型生产关系，必须发挥市场作用，以制度创新推动创新驱动发展战略的深入实施。为此，处理好“放”和“管”的关系是基于现有的理论成果，着眼于新的实践探索，在完善社会主义市场经济体制过程中形成的理性认识。

Handling the relationship between "enlivening" and "governing" can both leverage the efficiency of the market through reform and enhance the effectiveness of governance through coordination. "Enlivening" means exchanging the government's "subtraction" for market vitality. The government minimizes direct allocation of market resources and direct intervention in market activities, reduces cumbersome management affairs and specific approval items, and allows the market to fully play its role. "Governing" means using the government's "addition" to maintain market stability. In a market economy, the pursuit of maximum profit by business entities inevitably leads to conflicts between individual interests and the overall and long-term interests of society. Therefore, it is necessary to leverage the government's role to remedy market failures while strengthening and optimizing public services, promoting social fairness, justice, and stability. Handling the relationship between "enlivening" and "governing" helps to coordinate, complement, and organically unify market efficiency and governance effectiveness, promoting development that is of higher quality, more efficient, fairer, and more sustainable.

处理好“放”和“管”的关系，既能以改革发挥市场之效率，又能以协调提升治理之效力。“放”即以政府“减法”换取市场活力。政府最大限度地减少对市场资源的直接配置和对市场活动的直接干预，减少繁冗复杂的管理事务和具体审批事项，让市场充分发挥作用。“管”即以政府“加法”维护市场稳定。在市场经济中，经营主体对利益最大化的追逐，必然会使个人利益与社会全局利益和长远利益相矛盾，因此需要发挥政府作用，在弥补市场失灵的同时，加强和优化公共服务，促进社会公平正义和社会稳定。处理好“放”和“管”的关系，有助于促使市场效率与治理效力相互协调、相互补充、有机统一，推动更高质量、更有效率、更加公平、更可持续的发展。

How to handle the relationship between the government and the market can be described as a focal point and difficulty in the history of economic development. We should step out of the ideological barriers of "small" versus "big" and "weak" versus "strong", and understand the role of the government and its relationship with the market from the perspective of "effectiveness". On the one hand, an effective government should be a service-oriented government. By improving administrative efficiency and service quality, it uses the method of "enlivening" to create a high-quality business environment for the market, continuously stimulating market vitality. On the other hand, an effective government should be a law-based government. By adhering to law-based administration, it uses the means of "governing" to establish rules and regulations for the market, effectively maintaining market order.

如何处理好政府与市场关系，可谓是经济学发展史上的焦点与难点。我们应走出“小”与“大”、“弱”与“强”的思想藩篱，从“有效”的角度，理解政府的作用及其与市场的关系。一方面，有效的政府应是服务政府，通过提高行政效率和服务质量，利用“放”的方法为市场营造优质营商环境，持续激发市场活力。另一方面，有效的政府应是法治政府，通过坚持依法行政，借助“管”的手段为市场建章立制，有力维护市场秩序。

Unlike Western developed countries that allow the market to expand unchecked, China, by formulating national plans and fulfilling policy commitments, and relying on scientific macro-control and effective government governance, truly promotes high-quality development to be implemented deeply and practically. This is precisely the logic behind China's ability to always move forward steadily along the track of economic growth against the complex and volatile backdrop of the international and domestic situation. Handling the relationship between "enlivening" and "governing" helps the "visible hand" and the "invisible hand" to work in synergy, providing new ideas for solving problems of government overreach, absence, and market failure.

与西方发达国家任由市场扩张不同，中国通过制定国家规划和履行政策承诺，凭借科学的宏观调控、有效的政府治理，真正推动经济高质量发展走深走实，这也正是在国际国内形势纷繁复杂的大背景下，中国总能沿着经济增长轨道稳定前行的逻辑所在。处理好“放”和“管”的关系，有助于使“有形之手”和“无形之手”协同发力，为处理政府越位、缺位与市场失灵问题提供新的解决思路。

Summarizing Regular Characteristics

总结规律性特点

Under the conditions of the socialist market economy, to fully leverage the role of the government, one should pay attention to the dialectics of "limited" management and "unlimited" service. It is necessary to be both "able to enliven", reducing what should not be managed, and "able to govern", managing well what should be managed, promoting a better combination of an effective market and a competent government, the organic unity of vitality and order, and the positive interaction between high-quality development and high-level security.

在社会主义市场经济条件下充分发挥政府作用，应讲究“有限”管理与“无限”服务的辩证法，既要“放得活”，把不该管的减下去，也要“管得住”，把该管的管好，促进有效市场和有为政府更好结合、活力与秩序有机统一，以及高质量发展和高水平安全良性互动。

Handling the relationship between the government and the market remains the core issue of economic system reform. Leveraging the decisive role of the market in resource allocation needs to be grasped from an overall perspective; in some important areas, the government's role still needs to be fully utilized. Better leveraging the government's role mainly involves realizing the functional transformation of the government from a manager to a service provider, giving entrepreneurs a stage to display their talents. The market and the government are mutually reinforcing, mutually promoting, and complementary. We must adhere to dialectics and the "two-point theory", continue to work on the integration of the basic socialist system and the market economy, and give full play to the advantages of both aspects. To this end, through "being able to enliven", improve the market mechanism, break down industry monopolies, barriers to entry, and local protection, enhance enterprises' ability to react and adjust to changes in market demand, and improve the efficiency of resource allocation and competitiveness of enterprises. Through "being able to govern", leverage the government's role. On the basis of respecting market laws, use reform to stimulate market vitality, use policies to guide market expectations, use planning to clarify investment directions, and use the rule of law to regulate market behavior.

处理好政府与市场的关系仍然是经济体制改革的核心问题。发挥市场在资源配置中的决定性作用需要从总体上把握，有些重要领域仍需要充分发挥政府作用。而更好发挥政府作用，主要是实现政府从管理者转向服务者的职能转型，让企业家有用武之地。市场和政府是相辅相成、相互促进、互为补充的关系。我们要坚持辩证法、两点论，继续在社会主义基本制度与市场经济的结合上下功夫，把两方面优势都发挥好。为此，通过“放得活”完善市场机制，打破行业垄断、进入壁垒、地方保护，增强企业对市场需求变化的反应和调整能力，提高企业资源要素配置效率和竞争力。通过“管得住”发挥政府作用，在尊重市场规律的基础上，用改革激发市场活力，用政策引导市场预期，用规划明确投资方向，用法治规范市场行为。

People are the subjects of society; reform and construction must be implemented and driven by people. The general laws of the world modernization process show that a country, in its transition from a traditional society to a modern one, inevitably faces certain social contradictions and risks. Since the founding of New China, the Communist Party of China has led the Chinese people to create two miracles rarely seen in the world: rapid economic development and long-term social stability. While achieving economic take-off, it has effectively dealt with the pains of transformation, allowing the vitality of economic and social development to be released in an orderly manner. Being both "able to enliven" and "able to govern" helps to balance the relationship between the economy and society, embedding vitality within order and building order upon vitality. By releasing space and providing effective protection, it fully mobilizes the enthusiasm of all parties to promote high-quality development, achieving the unity and coordination of social vitality bursting forth and orderly social operation. On the side of vitality, unleash the potential for economic development and stimulate the creative vitality of society. On the side of order, continuously improve social systems and various incentive mechanisms for equality of opportunity and fair distribution.

人是社会的主体，改革和建设要由人来实施和推动。世界现代化历程的一般规律表明，一个国家在从传统社会向现代社会转变的过程中，都不可避免地面临一定的社会矛盾和风险。新中国成立以来，中国共产党领导中国人民创造了世所罕见的经济快速发展和社会长期稳定两大奇迹，在实现经济腾飞的同时有效应对转型阵痛，让经济社会发展的活力有序释放。既“放得活”又“管得住”有助于平衡经济与社会关系，寓活力于秩序之中，建秩序于活力之上，通过释放空间和有效保护，充分调动推动经济高质量发展的各方面积极性，实现社会活力迸发与社会有序运行相统一、相协调。在活力的一面，释放经济发展潜能，激发社会创造活力。在秩序的一面，不断完善社会制度以及各种机会公平、分配公平的激励机制。

Currently, changes unseen in a century are accelerating, and changes of the world, of the times, and of history are unfolding in ways unprecedented. China's development faces new strategic opportunities, new strategic tasks, new strategic stages, new strategic requirements, and new strategic environments. Development is the foundation and purpose of security; security is the condition and guarantee for development. Being both "able to enliven" and "able to govern" contributes to the dynamic balance and mutual reinforcement of development and security, enhancing viability, competitiveness, development capacity, and sustainability. On the development side, adhere to openness and inclusiveness, create favorable conditions and environment for opening up to the outside world, promote the orderly and free flow of international and domestic factors, efficient allocation of resources, and deep integration of markets, and cultivate more dynamic, creative, and competitive business entities. On the security side, maintain strategic focus, strengthen the construction of national strategic scientific and technological forces, explore the establishment of mechanisms for risk assessment, evaluation, prevention, and control, improve the guarantee system for handling major public emergencies, and advance the construction of the national security system and capabilities.

当前，世界百年未有之大变局加速演进，世界之变、时代之变、历史之变正以前所未有的方式展开，中国发展面临新的战略机遇、新的战略任务、新的战略阶段、新的战略要求、新的战略环境。发展是安全的基础和目的，安全是发展的条件和保障。既“放得活”又“管得住”有助于发展和安全的动态平衡、相得益彰，增强生存力、竞争力、发展力、持续力。在发展的一侧，坚持开放包容，创造对外开放的有利条件和环境，促进国际国内要素有序自由流动、资源高效配置、市场深度融合，培育更有活力、创造力和竞争力的经营主体。在安全的一侧，保持战略定力，加强国家战略科技力量建设，探索建立风险研判、评估、防控机制，健全重大突发公共事件处置保障体系，推进国家安全体系和能力建设。

Grasping the Practical Orientation

把握实践指向

Implementing reforms with the spirit of driving nails [1]1 "Spirit of driving nails" (钉钉子精神) is a metaphor used by Xi Jinping to describe the need for persistence and precision in implementing reforms, likening each reform task to a nail that must be driven in firmly and accurately. requires, in the practical exploration of building a high-level socialist market economy system, grasping the preconditions, institutional foundations, and key areas of being both "able to let go" and "able to manage well," continuously consolidating the important guarantee for Chinese-path modernization.

以钉钉子精神抓好改革落实，要求在构建高水平社会主义市场经济体制的实践探索中，把握既“放得活”又“管得住”的前提条件、制度基础和关键领域，不断夯实中国式现代化的重要保障。

The precondition is to clarify responsibilities and standardize operations, better leveraging the role of market mechanisms while adhering to and implementing the "Two Unswervinglies." [2]2 "Two Unswervinglies" (两个毫不动摇) refers to the Party's policy of unswervingly consolidating and developing the public sector of the economy, and unswervingly encouraging, supporting, and guiding the development of the non-public sector of the economy. First, straighten out the areas of reform and tackling hard issues for enterprises of different ownership types. Centering on strategic coordination, layout optimization, structural adjustment, and other aspects, deepen the reform of state-owned assets and state-owned enterprises, enhance core functions, and improve core competitiveness. At the same time, improve the long-term mechanism for private enterprises to participate in the construction of major national projects. Second, improve the credit evaluation system. Improve the classified assessment and evaluation system for state-owned enterprises, and carry out accounting for the added value of state-owned enterprises. Accelerate the establishment of a comprehensive evaluation system for the credit status of private enterprises, and improve the credit enhancement system for private small and medium-sized enterprises. Support and guide private enterprises to improve their governance structures and management systems, and strengthen enterprise compliance construction and clean governance risk prevention and control.

前提是明确职责、规范运行，在坚持和落实“两个毫不动摇”中更好发挥市场机制作用。一是理顺不同所有制企业的改革攻坚领域。围绕战略协同、布局优化、结构调整等方面，深化国资国企改革，增强核心功能，提升核心竞争力。同时，完善民营企业参与国家重大项目建设长效机制。二是完善信用评价体系。完善国有企业分类考核评价体系，开展国有经济增加值核算。加快建立民营企业信用状况综合评价体系，健全民营中小企业增信制度。支持引导民营企业完善治理结构和管理制度，加强企业合规建设和廉洁风险防控。

The foundation is to improve institutions and deepen reforms, creating a fairer and more dynamic market environment. First, improve the fair competition system. Adhere to the policy direction of creating a good environment and providing more opportunities for the development of the non-public sector of the economy, deeply break down market access barriers, and promote the fair opening of competitive areas of infrastructure to business entities. Ensure that all forms of ownership economy legally and equally use factors of production, fairly participate in market competition, and receive equal legal protection, promoting complementary advantages and common development of all forms of ownership economy. Strengthen the rigid constraints of fair competition review, strengthen anti-monopoly and anti-unfair competition, and clean up and abolish various regulations and practices that hinder a unified national market and fair competition. Second, improve the system for supporting the development of small and medium-sized enterprises. Improve the policy system for supporting private enterprise financing, and solve the problems of difficult and expensive financing. Promote the entrepreneurial spirit, support and guide various enterprises to improve the efficiency of resource factor utilization and management level, fulfill social responsibilities, and accelerate the construction of more world-class enterprises. Improve the property rights system, and legally, equally, and permanently protect the property rights of all forms of ownership economy. Improve the market access system, and optimize the market access environment for new business forms and new fields.

基础是完善制度、深化改革，创造更加公平、更有活力的市场环境。一是完善公平竞争制度。坚持致力于为非公有制经济发展营造良好环境和提供更多机会的方针政策，深入破除市场准入壁垒，推进基础设施竞争性领域向经营主体公平开放。保证各种所有制经济依法平等使用生产要素、公平参与市场竞争、同等受到法律保护，促进各种所有制经济优势互补、共同发展。加强公平竞争审查刚性约束，强化反垄断和反不正当竞争，清理和废除妨碍全国统一市场和公平竞争的各种规定与做法。二是完善支持中小企业发展制度。完善民营企业融资支持政策制度，破解融资难、融资贵问题。弘扬企业家精神，支持和引导各类企业提高资源要素利用效率和经营管理水平，履行社会责任，加快建设更多世界一流企业。完善产权制度，依法平等长久保护各种所有制经济产权。完善市场准入制度，优化新业态新领域市场准入环境。

The key is to smooth circulation and cultivate the system, achieving optimal allocation efficiency and maximum benefit of resources. First, optimize the mechanism for determining factor prices. Improve the mechanism for determining factor prices mainly by market supply and demand relations, and prevent improper government intervention in price formation. Improve the mechanism by which factors of production such as labor, capital, land, knowledge, technology, management, and data are evaluated for their contribution by the market and remunerated according to their contribution. Advance price reforms in areas such as water, energy, and transportation. Second, improve the system for the smooth flow of factors. In the process of accelerating the construction of a unified national market, improve the national standards system, deepen the reform of the local standards management system, and promote the smooth flow of production factors, the efficient allocation of various resources, and the full release of market potential. Accelerate the development of the Internet of Things, improve the integrated and seamlessly connected circulation rules and standards, and reduce social logistics costs. Third, accelerate the cultivation of a complete domestic demand system. Establish a long-term mechanism for government investment to support the construction of basic, public welfare, and long-term major projects, improve the institutional mechanism for government investment to effectively drive social investment, and form a market-led endogenous growth mechanism for effective investment. At the same time, improve the long-term mechanism for expanding consumption, promote bulk consumption and key consumption, promote the quality improvement and expansion of service consumption, and better play the fundamental role of consumption in driving economic growth.

关键是畅通循环、培育体系，实现资源配置效率最优化和效益最大化。一是优化要素价格决定机制。完善主要由市场供求关系决定要素价格机制，防止政府对价格形成的不当干预。健全劳动、资本、土地、知识、技术、管理、数据等生产要素由市场评价贡献、按贡献决定报酬的机制。推进水、能源、交通等领域价格改革。二是完善要素顺畅流动体系。在加快构建全国统一大市场的过程中，健全国家标准体系，深化地方标准管理制度改革，推动生产要素畅通流动、各类资源高效配置、市场潜力充分释放。加快发展物联网，健全一体衔接的流通规则和标准，降低社会物流成本。三是加快培育完整内需体系。建立政府投资支持基础性、公益性、长远性重大项目建设长效机制，健全政府投资有效带动社会投资体制机制，形成市场主导的有效投资内生增长机制。同时，完善扩大消费长效机制，促进大宗消费、重点消费，推动服务消费提质扩容，更好发挥消费拉动经济增长的基础性作用。

Online editor: Paul

网络编辑：保罗