A High-Level Socialist Market Economy System Is an Important Guarantee for Chinese-Path Modernization

The Third Plenary Session of the 20th Central Committee of the Communist Party of China [1]1 The "two unswervinglys" (两个毫不动摇) refer 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. clearly put forward major theses such as that further deepening reform comprehensively must “take economic system reform as the driving force” and that “a high-level socialist market economy system is an important guarantee for Chinese-path modernization,” and specified the goal of “by 2035, comprehensively establishing a high-level socialist market economy system.” The high-level socialist market economy system is our Party’s development and deepening of the theory of the market economy, clearly indicating the key issues and key tasks for the high-level development of the socialist market economy system in the process of further deepening reform comprehensively, and is an important guarantee for advancing Chinese-path modernization.

党的二十届三中全会鲜明提出进一步全面深化改革要“以经济体制改革为牵引”、“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”等重大论断，明确“到二〇三五年，全面建成高水平社会主义市场经济体制”。高水平社会主义市场经济体制，是我们党对市场经济理论的发展与深化，清晰指明进一步全面深化改革过程中社会主义市场经济体制高水平发展的关键问题和重点任务，是推进中国式现代化的重要保障。

1. The High-Level Socialist Market Economy System Is a Development and Deepening of the Theory of the Market Economy

1.高水平社会主义市场经济体制是对市场经济理论的发展和深化

General Secretary Xi Jinping pointed out, “Developing a socialist market economy is a great creation of our Party.” After the Third Plenary Session of the 11th Central Committee [2]2 The Third Plenary Session of the 11th Central Committee, held in December 1978, marked the beginning of China’s reform and opening up era., our Party scientifically elucidated the nature of the market economy, put forward that both planning and the market are economic means, settled the debate over whether the market economy was “capitalist” or “socialist,” and China’s economy entered a track of high-speed development. Since the 18th National Congress of the CPC [3]3 The 18th National Congress of the CPC, held in November 2012, marked the start of the New Era under Xi Jinping’s leadership., the Chinese nation has experienced a great leap from standing up and growing rich to becoming strong. Our Party keeps pace with the times, conforms to the development of practice, highlights the problem orientation, and in the face of complex and ever-changing international and domestic situations, in the face of a new round of scientific and technological revolution and industrial transformation, and in the face of the new expectations of the people, continuously improves and develops the system of socialism with Chinese characteristics, proposes the construction of a high-level socialist market economy system, and continuously injects strong impetus into advancing Chinese-path modernization.

习近平总书记指出，“搞社会主义市场经济是我们党的一个伟大创造”。党的十一届三中全会后，我们党科学阐释市场经济的性质，提出了计划和市场都是经济手段，平息了市场经济姓“资”还是姓“社”的争论，中国经济迈入高速发展轨道。党的十八大以来，中华民族迎来从站起来、富起来到强起来的伟大飞跃。我们党紧跟时代步伐，顺应实践发展，突出问题导向，面对纷繁复杂的国际国内形势，面对新一轮科技革命和产业变革，面对人民群众新期待，不断完善和发展中国特色社会主义制度，提出构建高水平社会主义市场经济体制，为推进中国式现代化持续注入强劲动力。

The high-level socialist market economy system is a development and deepening of the theory of the market economy. The Fourth Plenary Session of the 19th Central Committee [4]4 The Fourth Plenary Session of the 19th Central Committee, held in October 2019, focused on upholding and improving the system of socialism with Chinese characteristics and advancing the modernization of the national governance system and governance capacity. listed the “socialist market economy system” as part of the basic socialist economic system, meaning that our Party, based on the new era background and development situation, has expanded its understanding of the market economy and comprehensively deepened the theoretical connotation of the socialist market economy. On this basis, the Third Plenary Session of the 20th Central Committee proposed the goal of “by 2035, comprehensively establishing a high-level socialist market economy system,” indicating that the socialist market economy system must take “high-level” as its development direction. In this sense, “high-level” is not only an important standard for judging the effectiveness of the socialist market economy system but also an important standard for judging whether it conforms to the basic socialist economic system.

高水平社会主义市场经济体制是对市场经济理论的发展和深化。党的十九届四中全会将“社会主义市场经济体制”列入社会主义基本经济制度，意味着我们党根据新的时代背景和发展形势，拓展了对市场经济的认识，全面深化了社会主义市场经济的理论内涵。在此基础上，党的二十届三中全会提出“到二〇三五年，全面建成高水平社会主义市场经济体制”的目标，指明社会主义市场经济体制必须把“高水平”作为发展方向。从这个意义上讲，“高水平”不仅是用于判断市场经济体制发挥作用大小的重要标准，还是判断是否符合社会主义基本经济制度的重要标准。

Building a high-level socialist market economy system highlights the key tasks of deepening economic system reform. In the critical period of comprehensively advancing the construction of a strong country and the great rejuvenation of the Chinese nation through Chinese-path modernization, the Third Plenary Session of the 20th Central Committee requires focusing on constructing a high-level socialist market economy system to provide an important guarantee for realizing Chinese-path modernization. To construct a high-level socialist market economy system with the important goal of guaranteeing Chinese-path modernization, it is necessary to adhere to the method of systematic integration, properly handle major relationships such as those between economy and society, government and market, efficiency and fairness, vitality and order, and development and security, and better promote economic construction, political construction, cultural construction, social construction, and ecological civilization construction to achieve greater results. From this, it can be seen that constructing a high-level socialist market economy system further highlights the key tasks of deepening economic system reform, mainly reflected in aspects such as the high-standard construction of the market system, the high-quality improvement of basic market economy institutions, the high-level development of the systems and mechanisms for opening up to the outside world, and the high-standard construction of the macroeconomic governance system.

建设高水平社会主义市场经济体制，突出了深化经济体制改革的任务重点。在以中国式现代化全面推进强国建设、民族复兴伟业的关键时期，党的二十届三中全会要求聚焦构建高水平社会主义市场经济体制，为实现中国式现代化提供重要保障。以保障中国式现代化为重要目标构建高水平社会主义市场经济体制，必须坚持系统集成方法，处理好经济和社会、政府和市场、效率和公平、活力和秩序、发展和安全等重大关系，更好推动经济建设、政治建设、文化建设、社会建设、生态文明建设取得更大成效。由此可以看出，构建高水平社会主义市场经济体制，更加突出了深化经济体制改革的任务重点，主要体现在市场体系的高标准建设、市场经济基础制度的高质量完善、对外开放体制机制的高水平发展、宏观经济治理体系的高标准构建等方面。

2. The Core Issue in Constructing a High-Level Socialist Market Economy System Is Properly Handling the Relationship Between the Government and the Market

2.构建高水平社会主义市场经济体制的核心问题是处理好政府与市场关系

General Secretary Xi Jinping emphasized, “Adhering to the reform direction of the socialist market economy, the core issue is to properly handle the relationship between the government and the market, enabling the market to play a decisive role in resource allocation and allowing the government to better play its role.” To construct a high-level socialist market economy system, it is necessary to focus on the core issue of properly handling the relationship between the government and the market, concentrate on key links such as creating a market environment, cultivating market functions, and building market rule of law, and further improve the level of government governance.

习近平总书记强调，“坚持社会主义市场经济改革方向，核心问题是处理好政府和市场的关系，使市场在资源配置中起决定性作用和更好发挥政府作用”。构建高水平社会主义市场经济体制，必须围绕处理好政府和市场关系这个核心问题，聚焦市场环境创造、市场功能培育、市场法治建设等重点环节，进一步提升政府治理水平。

To properly handle the relationship between the government and the market, the government should better play its role in building and maintaining a healthy market environment. Under the premise of respecting the basic laws of the market, the government needs to “proceed from the strategic height of constructing a new development pattern, promoting high-quality development, and promoting common prosperity, to promote the formation of a fair and competitive market environment,” so that the socialist market economy is both fair and orderly and full of vitality and impetus. Regarding the relationship between vitality and order, General Secretary Xi Jinping profoundly pointed out: “In the historical process of modernization, handling this pair of relationships is a worldwide problem. Chinese-path modernization should and can achieve a dynamic balance that is lively without chaos, and active and orderly.” The market economy emphasizes efficiency and vitality, while socialism emphasizes equality and fairness. However, the combination of the two will not automatically generate a fairer and more dynamic market environment; it also requires the government to better play its role. Through scientific macro-control and effective government governance, the advantages of the socialist market economy system should be fully utilized to achieve effective incentives for property rights, free flow of factors, flexible price responses, fair and orderly competition, and survival of the fittest among enterprises.

处理好政府和市场的关系，应更好发挥政府建设和维护健康市场环境的作用。政府需要在尊重市场基本规律的前提下，“从构建新发展格局、推动高质量发展、促进共同富裕的战略高度出发，促进形成公平竞争的市场环境”，让社会主义市场经济既公平有序又充满活力动力。关于活力与秩序的关系，习近平总书记深刻指出：“在现代化的历史进程中，处理好这对关系是一道世界性难题。中国式现代化应当而且能够实现活而不乱、活跃有序的动态平衡。”市场经济注重效率和活力，社会主义强调平等和公平，但两者结合并不会自动生长出更加公平、更有活力的市场环境，还需要更好发挥政府作用。通过科学的宏观调控、有效的政府治理，充分发挥社会主义市场经济体制优势，实现产权有效激励、要素自由流动、价格反应灵活、竞争公平有序、企业优胜劣汰。

To properly handle the relationship between the government and the market, the government should better play its role in guiding and cultivating high-level market functions. The “invisible hand” of the market can identify the current scarcity of commodities and guide the rational flow of resources, but it cannot solve the problems of insufficient long-term investment and uncertain returns faced by scientific and technological innovation, basic research, and frontier technology research and development, nor can it easily solve negative externalities such as damage to the ecological environment that may occur in the process of resource allocation. Therefore, constructing a high-level socialist market economy system should demonstrate a higher level in better solving problems such as negative externalities, achieving optimal resource allocation efficiency while maximizing social benefits. This means that the functional orientation of the high-level socialist market economy system transcends the general functions of the market economy and places higher demands on the government to better play the role of the “visible hand.”

处理好政府和市场的关系，应更好发挥政府引导和培育高层次市场功能的作用。市场这只“无形之手”可以识别当前商品的稀缺程度，引导资源的合理流向，但解决不了科技创新、基础研究和前沿技术研发面临的长期投入不足和回报不确定性等问题，也难以解决资源配置过程中可能出现的损害生态环境等负外部性问题。所以，构建高水平社会主义市场经济体制，应在更好地解决负外部性问题等方面体现出更高水平，在实现资源配置效率最优的同时实现社会效益最大化。这意味着，高水平社会主义市场经济体制的功能定位超越了市场经济的一般功能，对更好发挥政府“有形之手”的作用提出了更高要求。

To properly handle the relationship between the government and the market, it is required to both “loosen up” and “manage well.” “Loosening up” means respecting and granting equal competition rights to market entities, allowing the market competitiveness of enterprises and individuals to become the decisive force for survival of the fittest; “managing well” means requiring the government to better play its role, ensuring that the order of the market economy is healthy and stable, and must not harm national security. “Loosening up” and “managing well” are dialectically unified, are sufficient and necessary conditions for smoothing the circulation of the national economy, reflect the firm determination to develop the socialist market economy, and also place higher demands on the government’s “visible hand” to ensure the smooth operation of the market mechanism, demonstrating our Party’s reform wisdom and innovative courage in continuously improving the modernization level of the national governance system and governance capacity.

处理好政府和市场的关系，要求既“放得活”又“管得住”。“放得活”，就是尊重并赋予市场主体平等的竞争权，让企业和个人的市场竞争力成为实现优胜劣汰的决定性力量；“管得住”，就是要求更好发挥政府作用，必须确保市场经济秩序健康稳定，绝不能妨碍国家安全。“放得活”和“管得住”是辩证统一的，是畅通国民经济循环的充分必要条件，既体现出发展社会主义市场经济的坚定决心，也对以政府“有形之手”保障市场机制顺畅运行提出更高要求，彰显我们党不断提升国家治理体系和治理能力现代化水平的改革智慧和创新勇气。

To properly handle the relationship between the government and the market, it is necessary to construct the socialist market economy system on the track of the rule of law. The Third Plenary Session of the 20th Central Committee clearly pointed out that to further deepen reform comprehensively, it is necessary to adhere to the Party’s overall leadership, adhere to a people-centered approach, adhere to upholding fundamental principles and breaking new ground, adhere to taking institutional construction as the main line, adhere to comprehensive law-based governance, and adhere to the systems concept. Constructing a high-level socialist market economy system means further improving the basic institutions of the market economy, including the property rights system, the market information disclosure system, the market access system, the enterprise exit system, the social credit system, and the regulatory system. The construction and improvement of this series of institutions must all follow the requirement that “the socialist market economy is essentially a rule-of-law economy.”

处理好政府和市场的关系，必须在法治轨道上构建社会主义市场经济体制。党的二十届三中全会明确指出，进一步全面深化改革，必须坚持党的全面领导、坚持以人民为中心、坚持守正创新、坚持以制度建设为主线、坚持全面依法治国、坚持系统观念。构建高水平社会主义市场经济体制，就是要进一步完善市场经济基础制度，包括产权制度、市场信息披露制度、市场准入制度、企业退出制度、社会信用体系和监管制度等。这一系列制度的构建与完善，都必须遵循“社会主义市场经济本质上是法治经济”的要求。

3. Closely Focus on the Primary Task of High-Quality Development to Construct a High-Level Socialist Market Economy System

3.紧紧聚焦高质量发展这一首要任务构建高水平社会主义市场经济体制

High-quality development is the primary task of comprehensively building a modern socialist country. To construct a high-level socialist market economy system, we should anchor on the primary task of high-quality development, push the socialist market economy to a higher level and higher standard, accelerate the construction of a modernized economic system, and achieve high-level scientific and technological self-reliance and self-strengthening as well as high-level opening up to the outside world.

高质量发展是全面建设社会主义现代化国家的首要任务，构建高水平社会主义市场经济体制，应锚定高质量发展这一首要任务，把社会主义市场经济推向更高层次、更高标准，加快建成现代化经济体系，实现高水平科技自立自强与高水平对外开放。

Adhere to taking institutional improvement as the main line, and push the socialist market economy to a higher level and higher standard. Uphold and implement the "two unswervinglys" [1]1 The "two unswervinglys" (两个毫不动摇) refer 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., ensuring that all forms of ownership enjoy equal access to factors of production in accordance with the law, participate fairly in market competition, and receive equal legal protection, promoting complementary advantages and common development of all forms of ownership. Accelerate the improvement of the basic systems of the market economy, strive to build a unified national market, and promote the unification of basic market system rules, fair and unified market supervision, and high-standard connectivity of market facilities. Continuously improve the market access system, deepen the reform of the registered capital subscription system, improve the enterprise exit system, and optimize the market access environment for new business forms and new fields. Improve the property rights system, establish an efficient comprehensive intellectual property management system, construct a trade secret protection system, and improve the punitive damages system. Improve the social credit system and its regulatory system, and perfect a new type of regulatory mechanism based on credit.

坚持以制度建设为主线，把社会主义市场经济推向更高层次、更高标准。坚持和落实“两个毫不动摇”，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。加快完善市场经济基础制度，着力构建全国统一大市场，推动市场基础制度规则统一、市场监管公平统一、市场设施高标准联通。持续完善市场准入制度，深化注册资本认缴登记制度改革，完善企业退出制度，优化新业态新领域市场准入环境。完善产权制度，建立高效的知识产权综合管理体制、构建商业秘密保护制度、完善惩罚性赔偿制度。完善社会信用体系及其监管制度，健全以信用为基础的新型监管机制。

Accelerate the construction of a modern economic system. A modern economic system is an organic whole composed of the interrelationships and internal connections of various links, levels, and fields of social and economic activities. To build a modern economic system, it is necessary to focus on the efficient combination of an effective market and a competent government, and strive to build an economic system with an effective market mechanism, vibrant micro-entities, and moderate macro-control. Give play to the leading role of economic system reform, break down institutional and mechanistic obstacles that restrict the effective functioning of the market mechanism, and stimulate the endogenous driving force and innovation vitality of the whole society. Improve the modern enterprise system with Chinese characteristics, comprehensively deepen the reform of state-owned enterprises, and continuously optimize the development environment for private enterprises. Improve the macroeconomic governance system, and enhance the targetedness and scientific nature of macroeconomic governance.

加快建设现代化经济体系。现代化经济体系是由社会经济活动各个环节、各个层面、各个领域的相互关系和内在联系构成的一个有机整体。建成现代化经济体系，必须着眼于有效市场与有为政府的高效结合，着力构建市场机制有效、微观主体有活力、宏观调控有度的经济体制。发挥经济体制改革的牵引作用，破解制约市场机制作用有效发挥的体制机制障碍，激发全社会内生动力和创新活力。完善中国特色现代企业制度，全面深化国有企业改革，持续优化民营企业发展环境。健全宏观经济治理体系，提高宏观经济治理的针对性和科学性。

Achieve high-level scientific and technological self-reliance and self-strengthening. Achieving high-level scientific and technological self-reliance and self-strengthening is the key to Chinese-path modernization construction. We should give full play to the important role of the market in the allocation of scientific and technological factors, the enhancement of scientific and technological innovation momentum, and the transformation of scientific and technological achievements, strengthen the principal position of enterprises in scientific and technological innovation, and promote changes in the development momentum and development quality of micro-market entities. Better play the important role of the government in promoting high-level scientific and technological self-reliance and self-strengthening, continuously deepen the reform of the science and technology system, optimize the organizational mechanism for major scientific and technological innovation, strengthen the institutional supply for new fields and new tracks, establish a future industry investment growth mechanism, improve the reform of science and technology project and fund management, strengthen the construction of the national technology transfer system, build a science and technology financial system that is compatible with scientific and technological innovation, and coordinate and promote the integrated reform of the education, science and technology, and talent systems and mechanisms.

实现高水平科技自立自强。实现高水平科技自立自强，是中国式现代化建设的关键，应充分发挥市场在科技要素配置、科技创新动力提升、科技成果转化等方面的重要作用，强化企业科技创新主体地位，推进微观市场主体发展动力、发展质量变革。更好发挥政府在推动高水平科技自立自强中的重要作用，持续深化科技体制改革，优化重大科技创新组织机制，加强新领域新赛道制度供给，建立未来产业投入增长机制，完善科技项目和经费管理改革，加强国家技术转移体系建设，构建同科技创新相适应的科技金融体制，统筹推进教育科技人才体制机制一体改革。

Promote high-level opening up. High-level opening up emphasizes institutional opening up, involving the opening up of rules, regulations, management, standards, etc., aiming to align with international rules, especially high-standard international economic and trade rules, and achieve a comprehensive improvement in the scale, structure, efficiency, and quality of opening up. Promoting high-level opening up through institutional opening up is a main component of building a high-level socialist market economy system. We should steadily expand institutional opening up in terms of rules, regulations, management, and standards. Deepen the reform of the management system for foreign investment and outbound investment, expand the high-standard free trade zone network facing the world, and accelerate the integration reform of domestic and foreign trade. Promote the liberalization and facilitation of trade and investment, and accelerate the construction of a new development pattern with domestic circulation as the main body and domestic and international dual circulations promoting each other.

推进高水平对外开放。高水平对外开放强调制度型开放，涉及规则、规制、管理、标准等方面的开放，旨在与国际规则特别是国际高标准经贸规则对接，实现对外开放规模、结构、效益和质量的全面提升。以制度型开放推进高水平对外开放，是构建高水平社会主义市场经济体制的主要内容，应稳步扩大规则、规制、管理、标准等制度型开放。深化外商投资和对外投资管理体制改革，扩大面向全球的高标准自由贸易区网络，加快内外贸一体化改革。推动贸易和投资自由化便利化，加快构建以国内大循环为主体、国内国际双循环相互促进的新发展格局。

Online editor: Paul

网络编辑：保罗