Innovation and Breakthrough in the Theory of Economic Reform

Reform is the key to liberating and developing the productive forces. Continuously improving and perfecting the economic system through economic reform is an important pathway for stimulating the vitality of economic development and ensuring sustained and healthy economic growth. Since the 18th National Congress of the CPC, General Secretary Xi Jinping

改革是解放和发展社会生产力的关键，通过经济改革不断健全和完善经济体制，是激发经济发展活力、确保经济持续健康发展的重要途径。党的十八大以来，习近平总书记深刻把握我国经济发展阶段性特征和外部环境变化，立足我国经济社会发展伟大实践，着眼于推动高质量发展，坚持以经济体制改革为重点全面深化改革，创造性地提出一系列新思想新观点新论断，形成了习近平经济思想的经济改革理论。经济改革理论作为习近平经济思想的重要内容，既是改革思想的经济篇，也是经济思想的改革篇，深刻回答了新时代以来我国以改革促发展的一系列重大理论和实践问题，揭示了社会主义现代化进程中经济改革的一般规律，阐明了当前和今后一个时期以中国式现代化全面推进强国建设、民族复兴伟业的动力所在，具有重大理论和实践意义。

I

一

The main purpose of economic reform is to stimulate the endogenous driving force of social development through the continuous adjustment of relations of production, to promote the superstructure to better adapt to the economic base, to maximize the potential for economic development, and to enhance the overall efficiency of economic operation. Looking at the global development process, after World War II, countries around the world regarded economic reform as an important way to solve economic development problems and escape economic development difficulties. However, due to differences in the nature, objectives, methods, and means of reform, the practical effects of economic reform in various countries have also differed.

经济改革的主要目的，在于通过不断调整生产关系激发社会发展内生动力，促进上层建筑更好适应经济基础，最大限度地释放经济发展潜力，提升经济运行整体效率。纵观全球发展历程，二战后世界各国都把经济改革当作破解经济发展难题、走出经济发展困境的重要途径。但是，由于改革的性质、目标、方式方法不同，各国经济改革的实践效果也不尽相同。

After the founding of New China, with the establishment of the socialist system, how to improve and develop the socialist economic system became a completely new课题 [subject] facing our country. Before reform and opening up, our country drew on the experience of the Soviet Union to establish a highly centralized planned economic system, concentrating resources to prioritize the development of heavy industry, and within less than 30 years established an independent and relatively complete industrial system and national economic system. However, with the development of practice, the overly singular ownership structure and the increasingly rigid planned economic system greatly constrained the development of productive forces. After reform and opening up, our Party broke free from the shackles of traditional concepts, and while adhering to the Four Cardinal Principles [1]1 The Four Cardinal Principles are the principles of upholding the socialist path, the people's democratic dictatorship, the leadership of the Communist Party of China, and Marxism-Leninism and Mao Zedong Thought, first articulated by Deng Xiaoping in 1979., absorbed and drew on all advanced management experience and methods that reflect the laws of modern large-scale socialized production, boldly carried out economic system reform, and continuously promoted theoretical innovation and practical breakthroughs in economic reform. Economic reform first began in the countryside, then shifted to the cities, and was comprehensively rolled out. With the deepening of the practice of economic reform and the continuous deepening of understanding, the 14th National Congress of the CPC established the reform goal of establishing a socialist market economy system, initiating the magnificent process of developing a socialist market economy. Centering on this goal, we carried out arduous exploration of the two core issues of the combination of public ownership and the market economy and the relationship between the government and the market, promoting the formation of an ownership structure with public ownership as the main body and diverse forms of ownership developing together, a distribution system with distribution according to work as the main body and multiple modes of distribution coexisting, and a resource allocation method combining effective market mechanisms with moderate macroeconomic regulation and control. This innovated the socialist economic operation mechanism, realized the historic transformation from a highly centralized planned economic system to a vibrant socialist market economic system, and from a closed and semi-closed state to all-round opening up, driving our country's economy to achieve development achievements that have attracted worldwide attention.

新中国成立后，随着社会主义制度建立，如何完善和发展社会主义经济制度，是我国面临的全新课题。改革开放前，我国借鉴苏联经验建立了高度集中的计划经济体制，集中资源优先发展重工业，在不到30年的时间里建立起独立的、比较完整的工业体系和国民经济体系。然而，随着实践发展，过于单一的所有制结构和日益僵化的计划经济体制极大地制约了生产力发展。改革开放后，我们党打破传统观念束缚，在坚持四项基本原则的前提下，吸收和借鉴一切反映现代社会化大生产规律的先进管理经验和管理方法，大胆进行经济体制改革，不断推进经济改革的理论创新与实践突破。经济改革首先从农村开始，随后转向城市，并全面铺开。随着经济改革实践的日趋深入和认识上的不断深化，党的十四大确立了建立社会主义市场经济体制的改革目标，开启了发展社会主义市场经济壮阔进程。围绕这一目标，我们对公有制与市场经济的结合、政府与市场的关系这两大核心问题进行了艰辛探索，推动形成公有制为主体、多种所有制经济共同发展的所有制，按劳分配为主体、多种分配方式并存的分配制度，以及有效的市场机制和有度的宏观调控相结合的资源配置方式，创新了社会主义经济运行机制，实现了从高度集中的计划经济体制到充满活力的社会主义市场经济体制、从封闭半封闭到全方位开放的历史性转变，推动我国经济取得举世瞩目的发展成就。

Entering the New Era, our country's economy has turned to a stage of high-quality development, but promoting high-quality economic development faces deep-seated institutional and mechanistic problems. For example, the basic systems of the market economy are imperfect, the positioning of government functions is unclear, the laws and systems for implementing the "two unswervinglys" [2]2 The "two unswervinglys" refer to the 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. are imperfect, the fiscal, taxation, and financial systems are unsound, and the problems of unbalanced, uncoordinated, and unsustainable development are prominent. There is an urgent need to carry out institutional innovation through deepening reform to provide stronger and more reliable institutional guarantees for high-quality economic development. Facing the real problems in economic development head-on, the Party Central Committee with Comrade Xi Jinping at its core has focused on the institutional and mechanistic obstacles constraining high-quality economic development, made a series of major deployments for deepening economic system reform, and strived to promote reforms conducive to improving the efficiency of resource allocation, reforms conducive to improving the quality and efficiency of development, and reforms conducive to mobilizing the enthusiasm of all parties, fully stimulating the endogenous driving force and innovation vitality of the whole society. Centering on building a modernized economic system, we adhere to and improve the basic economic system, improve the macroeconomic governance system, actively build an economic system with effective market mechanisms, vibrant micro-entities, and moderate macroeconomic regulation and control, promote the deep integration of scientific and technological innovation and industrial innovation, accelerate the construction of a new development pattern, and promote changes in the quality, efficiency, and driving forces of economic development. Driven forcefully by reform, our country's development problems have been gradually solved, development vitality has been continuously enhanced, and development advantages have been constantly demonstrated. Over the past ten-plus years, despite being impacted by various unpredictable factors, China's economy has always moved forward steadily, achieving historic leaps step by step. Many indicators of productive forces development and many projects in the field of science and technology have caught up with, reached, or even exceeded international advanced levels, writing a glorious chapter in economic development and economic reform.

进入新时代，我国经济转向高质量发展阶段，但推动经济高质量发展面临着深层次体制机制问题。比如，市场经济基础制度不完善、政府职能定位不清、落实“两个毫不动摇”的法律和制度不完善、财税金融体制不健全等，发展不平衡、不协调、不可持续问题突出，亟须通过深化改革进行制度创新，为经济高质量发展提供更加坚强有力的制度保障。直面经济发展中的现实问题，以习近平同志为核心的党中央聚焦制约经济高质量发展的体制机制障碍，对深化经济体制改革作出一系列重大部署，着力推进有利于提高资源配置效率的改革、有利于提高发展质量和效益的改革、有利于调动各方面积极性的改革，充分激发全社会内生动力和创新活力。围绕建设现代化经济体系，坚持和完善基本经济制度，健全宏观经济治理体系，积极构建市场机制有效、微观主体有活力、宏观调控有度的经济体制，推进科技创新和产业创新深度融合，加快构建新发展格局，推动经济发展质量变革、效率变革、动力变革。在改革有力推动下，我国发展难题逐步破解，发展活力持续增强，发展优势不断彰显。这10多年来，尽管备受各种难预料因素冲击，中国经济始终稳健前行，一步步实现历史性跨越，生产力发展的很多指标、科技领域的许多项目都赶上、达到甚至超过国际先进水平，书写了经济发展和经济改革的辉煌篇章。

In stark contrast to the remarkable achievements of China's economic reform, the economic reforms of many countries in the world have been ineffective or even ended in failure. As early as the 1950s, with the drawbacks of the traditional planned economic system becoming increasingly apparent, the Soviet Union and Eastern European socialist countries began to carry out economic reforms, exploring the introduction of market mechanisms into the socialist economy. Although some partial progress was made, they did not form a reasonable economic system adapted to the development of productive forces. At the same time, because they did not adhere to the socialist direction in the reforms, this ultimately led to the drastic changes in Eastern Europe and the disintegration of the Soviet Union. Subsequently, they implemented the radical reform of "shock therapy," which resulted in economic stagnation, social unrest, and a serious decline in people's living standards. As for the developed capitalist countries, when they encountered economic crises, they also always tried to resolve the crises and alleviate social contradictions through reform. In the 1970s, facing the "stagflation" crisis, the United Kingdom, the United States, and other countries implemented neoliberal reforms, advocating economic liberalization, privatization, and marketization. In the short term, economic growth recovered somewhat, but this caused problems such as the economy shifting from real to virtual sectors and the widening gap between rich and poor. The 2008 international financial crisis was a concentrated outbreak of various contradictions. To cope with the crisis, France and some other developed countries proposed measures such as structural reform, but with little effect. In recent years, Western developed countries have been plagued by problems such as high inflation and public debt, deteriorating fiscal sustainability, and widening income inequality, which to some extent is proof of the failure of economic reform. After World War II, some developing countries in Latin America and other regions tried to accelerate catch-up through government intervention, then turned to neoliberalism after government intervention failed, and subsequently oscillated between liberalism and government intervention, never finding an economic system and development path suitable for their national conditions, nor achieving the expected development goals.

与中国经济改革取得显著成就不同，世界上许多国家的经济改革效果不彰甚至以失败告终。早在20世纪50年代，随着传统计划经济体制弊端日益显现，苏联和东欧社会主义国家开始进行经济改革，探索在社会主义经济中引入市场机制，虽然曾取得一些局部进展，但并没有形成适应生产力发展的合理的经济体制。同时，由于在改革中没有坚持社会主义方向，最终导致东欧剧变和苏联解体。而后又实施“休克疗法”的激进式改革，结果导致经济陷入停滞、社会动荡不安、人民生活水平严重下降。对于发达资本主义国家而言，他们在遭遇经济危机时也总试图通过改革化解危机缓和社会矛盾。20世纪70年代，面对“滞胀”危机，英美等国推行新自由主义改革，倡导经济自由化、私有化与市场化，短期内经济增长有所恢复，但却造成经济脱实向虚和贫富差距不断拉大等问题，2008年国际金融危机就是各种矛盾的一次集中爆发。为应对危机，法国等一些发达国家又提出结构性改革等措施，但是成效甚微。近年来，西方发达国家深受通货膨胀与公共债务居高不下、财政可持续性恶化、收入不平等加剧等问题困扰，某种程度上正是经济改革不成功的证明。二战后拉美等地区一些发展中国家，曾尝试通过政府干预加速追赶，又在政府干预失败后转向新自由主义，而后又在自由主义和政府干预之间摇摆，一直未能找到适合本国国情的经济体制和发展道路，也没有达到预期发展目标。

It can be seen from this that economic reform is an extremely complex and difficult systemic project, involving the adjustment of relations of production and the improvement of the superstructure. It requires effectively coordinating multiple interest relationships such as the current and the long-term, the partial and the overall, and the domestic and the international. Without the correct direction and goals, without strong leadership and organization, without scientific theoretical guidance and the support of the people, any economic reform is difficult to succeed. The reason why China's economic reform has been successful is precisely because we have given scientific and correct answers to these major issues.

由此可见，经济改革是一项极其复杂艰难的系统工程，涉及生产关系的调整、上层建筑的完善，需要有效统筹当前与长远、局部与整体、国内与国际等多维利益关系。如果没有正确的方向和目标，没有坚强的领导和组织，没有科学的理论指导和人民群众的支持，任何经济改革都是难以成功的。中国的经济改革之所以取得成功，就是因为我们在以上这些重大问题上作出了科学的、正确的回答。

II

二

Reform and opening up is the most distinctive feature of contemporary China. Since reform and opening up, and especially since the New Era, China’s economic and social development has achieved remarkable accomplishments that have attracted worldwide attention. The great practice of China’s economic reform contains extremely valuable reform experience. The economic reform theory of Xi Jinping’s economic thought is a new theoretical achievement formed in the fertile soil of the practice of reform and opening up. This theory draws on the experience and lessons of foreign economic reforms, summarizes the practical achievements and experience of China’s economic reform, profoundly answers the fundamental questions concerning the success or failure of economic reform, such as “what to reform” and “how to reform,” and has formed a series of important regular understandings. It not only has guiding significance for China’s economic reform but also has world significance in responding to the questions of the times and solving the difficult problems of economic reform in various countries. It is an innovation and breakthrough in the theory of economic reform, enriching and developing the Marxist political economy theory on economic systems and economic reform, and constitutes a major original contribution.

改革开放是当代中国最鲜明的特色。改革开放特别是新时代以来，我国经济社会发展取得了举世瞩目的成就。中国经济改革的伟大实践蕴含着十分宝贵的改革经验。习近平经济思想的经济改革理论就是在改革开放实践沃土中形成的崭新理论成果。这一理论，吸取国外经济改革经验教训，总结我国经济改革的实践成就和经验，深刻回答了“改什么”、“怎么改”等关系经济改革成败的根本性问题，形成了一系列重要的规律性认识，不仅对中国的经济改革具有指导意义，也具有回应时代之问、破解世界各国经济改革难题的世界意义，是对经济改革理论的创新和突破，丰富和发展了马克思主义政治经济学关于经济制度与经济改革的理论，具有重大原创性贡献。

Economic reform is a profound revolution, often involving both profound changes in ideas and concepts and profound adjustments in various complex interest relations. Without a strong leading force, it is difficult to break down the barriers of solidified interests,凝聚改革共识凝聚改革共识, and promote the implementation of reform measures. The failure of many reforms, both ancient and modern, Chinese and foreign, is often due to the lack of a strong leading force, which makes it impossible to continue pushing forward when the reform encounters enormous resistance. General Secretary Xi Jinping pointed out that upholding the Party’s overall leadership is our greatest political advantage and the fundamental guarantee for the successful advancement of China’s reform and opening up; to further deepen reform comprehensively, it must be carried out under the centralized and unified leadership of the Party Central Committee to ensure that the reform always advances in the correct political direction. In contemporary China, the Communist Party of China is the highest political leading force, occupying the core position in the national governance system, and playing the leading core role of commanding the overall situation and coordinating all parties in various national undertakings. Only by always adhering to the Party’s leadership can reform ensure the correct direction, maintain firm resolve, form a strong synergy, and ultimately achieve success. This is a hard truth fully proven by the great practice of China’s reform and opening up. To further deepen reform comprehensively, leading cadres at all levels must take a clear-cut stand on politics, consciously maintain a high degree of consistency with the Party Central Committee in thought, politics, and action, and concentrate their efforts on implementing various reform tasks to ensure practical results.

经济改革是一场深刻革命，往往既涉及思想观念的深刻变化，又涉及各种复杂利益关系的深刻调整，没有坚强的领导力量则难以打破利益固化藩篱、凝聚改革共识、推动改革举措落地。古今中外不少改革的失败，往往是因为缺乏坚强的领导力量才导致当改革遭遇巨大阻力时无法继续推行下去。习近平总书记指出，坚持党的全面领导，这是我们的最大政治优势，是我国改革开放成功推进的根本保证；进一步全面深化改革，必须在党中央集中统一领导下进行，保证改革始终沿着正确政治方向前进。在当代中国，中国共产党是最高政治领导力量，处于国家治理体系的核心位置，在国家各项事业中发挥总揽全局、协调各方的领导核心作用。只有始终坚持党的领导，改革才能确保正确方向，保持坚强定力，形成强大合力，最终取得成功。这是被我国改革开放伟大实践充分证明的硬道理。进一步全面深化改革，各级领导干部必须旗帜鲜明讲政治，自觉在思想上政治上行动上同党中央保持高度一致，凝心聚力把各项改革任务落到实处，务求改革实效。

Economic reform is a major matter concerning the vital interests of all the people. Ignoring the interest demands of the vast majority of the people, without the support and participation of the vast majority of the people, no reform can succeed. Even if it can temporarily alleviate social contradictions, it will ultimately fail. After World War II, some Western capitalist countries temporarily alleviated social contradictions by establishing mixed economic systems and welfare state models. However, when the economy encountered a “stagflation” crisis in the 1970s, they successively carried out neoliberal reforms, relaxing capital regulation, which led to a rapid expansion of the social wealth gap and intensified social contradictions, resulting in political polarization and social撕裂撕裂, making it naturally difficult to implement major reform plans and measures. General Secretary Xi Jinping pointed out that reform is meaningful only when it is for the people; reform has momentum only when it relies on the people; the fundamental purpose of our Party’s promotion of comprehensively deepening reform is to promote social fairness and justice, so that the fruits of reform and development benefit all the people more and more fairly. The success of China’s economic reform is precisely because we have always adhered to a people-centered approach, ensuring that reform is for the people, reform relies on the people, and the fruits of reform are shared by the people. To further deepen economic system reform, we must respect the principal position and pioneering spirit of the people, stimulate the creative potential of the masses, while at the same time paying high attention to the problem of the wealth gap under market economy conditions, continuously reform and improve the income distribution system, solidly promote common prosperity, and truly achieve that wherever the people call, reform responds.

经济改革是关乎全体人民切身利益的大事，忽视广大人民的利益诉求，没有广大人民的支持和参与，任何改革都不可能取得成功，即使短期能够缓解社会矛盾，最终也会失败。二战后一些西方资本主义国家曾通过建立混合经济体制和福利国家模式缓和社会矛盾，但当20世纪70年代经济发展遭遇“滞胀”危机时，又纷纷进行新自由主义改革，放松资本监管，导致社会贫富差距迅速扩大和社会矛盾不断激化，以致政治极化、社会撕裂，重大改革方案和措施自然也就难以推行下去。习近平总书记指出，为了人民而改革，改革才有意义；依靠人民而改革，改革才有动力；我们党推进全面深化改革的根本目的，就是要促进社会公平正义，让改革发展成果更多更公平惠及全体人民。中国经济改革能够成功，正是因为我们始终坚持以人民为中心，做到改革为了人民、改革依靠人民、改革成果由人民共享。进一步深化经济体制改革，要尊重人民主体地位和首创精神，激发人民群众的创造潜能，同时高度重视市场经济条件下的贫富差距问题，持续改革和完善收入分配制度，扎实推进共同富裕，真正做到人民有所呼、改革有所应。

Economic reform aims to solve various deep-seated contradictions and problems that restrict economic development. However, different countries have different historical cultures, different internal conditions and external environments, and different stages of development. It is impossible for them to face exactly the same contradictions and problems, and naturally there is no one-size-fits-all reform plan. Economic reform must adhere to seeking truth from facts, take the national conditions and world conditions as the realistic basis, and must not copy other countries’ models and experiences, nor be dominated by foreign ideologies. General Secretary Xi Jinping pointed out that the choice of a country’s governance system is determined by its historical inheritance, cultural traditions, and level of economic and social development, and is determined by its people; reform must proceed from China’s national conditions and the actual situation of economic and social development, be carried out in a guided and step-by-step manner, without seeking sensational effects or doing superficial work, and always adhere to the correct direction of reform and opening up; what should be reformed and can be reformed, we resolutely reform; what should not be reformed and cannot be reformed, we resolutely do not reform. Looking back on the course of China’s economic reform, we have adhered to the direction of socialist market economy reform, neither taking the old closed and rigid road nor the evil road of changing the banner, but instead advancing reform step by step according to practical development and actual needs, focusing on combining the strengths of the market economy with the superiority of the socialist system, and successfully establishing a socialist market economy system. At present, it is necessary to deeply grasp the national conditions and world conditions, closely focus on the prominent contradictions and problems facing the promotion of high-quality development, dare to make breakthroughs while steadily advancing, ensure the effective advancement of economic system reform, and achieve the set goals and tasks.

经济改革为的是解决制约经济发展的各种深层次矛盾问题。然而，不同国家历史文化相异，内部条件和外部环境有别，发展阶段也不相同，不可能面临完全一样的矛盾问题，自然也就没有放之四海而皆准的改革方案。经济改革必须坚持实事求是，坚持以国情世情为现实依据，不能照搬照抄他国模式和经验，更不能被国外意识形态所主导。习近平总书记指出，一个国家选择什么样的治理体系，是由这个国家的历史传承、文化传统、经济社会发展水平决定的，是由这个国家的人民决定的；要从我国国情出发、从经济社会发展实际出发，有领导有步骤推进改革，不求轰动效应，不做表面文章，始终坚持改革开放正确方向；该改的、能改的我们坚决改，不该改的、不能改的坚决不改。回顾我国经济改革历程，我们坚持社会主义市场经济改革方向，既不走封闭僵化的老路，也不走改旗易帜的邪路，而是根据实践发展和现实需要循序渐进改革，注重把市场经济的长处与社会主义制度优越性相结合，成功建立了社会主义市场经济体制。当前要深刻把握国情世情，紧盯推动高质量发展面临的突出矛盾和问题，既要敢于突破，又要稳扎稳打，确保经济体制改革有效推进，实现既定目标任务。

The key to economic development lies in optimizing the way resources are allocated. The government and the market are two basic ways of allocating resources. Only by properly handling the relationship between the government and the market can sustained and healthy economic development be promoted, which is also the core content of economic reform. An important reason for the economic problems in some countries is that they have never properly handled the relationship between the government and the market, and even simply opposed the two. The success of China’s market economy reform lies in always focusing on finding the optimal combination of the government-market relationship. General Secretary Xi Jinping pointed out that the core of deepening economic system reform is to handle the relationship between the government and the market; let the market play a decisive role in resource allocation, and better play the role of the government; the role of the market and the role of the government are complementary, mutually reinforcing, and mutually supplementary; promote a better combination of an effective market and a competent government. China’s national development plans and industrial policies, as well as the government-led model of scientific and technological innovation finance, all reflect the organic combination of an effective market and a competent government, providing strong support for China’s promotion of high-quality economic development. To further improve the institutional mechanisms for promoting high-quality development, it is necessary to better coordinate the relationship between an effective market and a competent government, create a fairer and more dynamic market environment, promote the formation of an economic order that is both “flexible and well-managed,” achieve the optimization and maximization of resource allocation efficiency, and fully demonstrate the advantages of the socialist market economy system.

经济发展的关键在于优化资源配置方式。政府和市场是配置资源的两种基本方式，只有处理好政府和市场的关系，才可能推动经济持续健康发展，这也是经济改革的核心内容。一些国家经济发展出现问题的重要原因就是始终没有正确处理好政府和市场之间的关系，甚至将二者简单对立起来。我国市场经济改革的成功之处，则在于始终注重寻找政府和市场关系的最优结合方式。习近平总书记指出，深化经济体制改革，核心是处理好政府和市场关系；使市场在资源配置中起决定性作用，更好发挥政府作用；市场作用和政府作用是相辅相成、相互促进、互为补充的；推动有效市场和有为政府更好结合。我国的国家发展规划和产业政策以及政府主导的科创金融模式都体现了有效市场和有为政府的有机结合，为我国推动经济高质量发展提供了强大支撑。进一步完善推动高质量发展的体制机制，要更好统筹有效市场和有为政府的关系，创造更加公平、更有活力的市场环境，推动形成既“放得活”又“管得好”的经济秩序，实现资源配置效率最优化和效益最大化，充分彰显社会主义市场经济体制的优势。

“All things have their methods before they can be accomplished.” [3]3 A classical Chinese saying from the Confucian text *Mencius* (《孟子》), emphasizing that proper methods are essential for achieving any goal. Economic reform is a systematic project. Problems in development and problems after development, general contradictions and deep-seated contradictions, tasks to be completed and newly proposed tasks are intertwined and superimposed, involving all aspects and complex relationships. Scientific methods must be employed, and correct methodology must be adhered to, for it to proceed smoothly. General Secretary Xi Jinping emphasized that we must adhere to making progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old; correctly handle the relationship between reform, development, and stability, adhere to the combination of Party leadership and respect for the people’s pioneering spirit, adhere to the combination of “crossing the river by feeling the stones” and top-level design, adhere to the combination of problem orientation and goal orientation, adhere to the combination of pilot projects and comprehensive promotion, adhere to the combination of reform decisions and legislative decisions, focus on the systematic, holistic, and coordinated nature of reform, coordinate the progress of reforms in various fields, and form an overall effect; handle major relationships such as economy and society, government and market, efficiency and fairness, vitality and order, development and security; reform requires both careful planning and, more importantly, implementation. These important expositions profoundly clarify the important methodology that should be adhered to in economic reform. At a new starting point, it is necessary to closely focus on the series of major decisions and deployments made by the Party Central Committee on economic system reform, pay more attention to system integration, pay more attention to highlighting key points, pay more attention to the actual effect of reform, and strive to achieve tangible results.

“事必有法，然后可成。”经济改革是一项系统工程，发展中的问题和发展后的问题、一般矛盾和深层次矛盾、有待完成的任务和新提出的任务交织叠加，涉及方方面面，关系错综复杂，必须讲求科学方法，坚持正确方法论，才可能顺利进行。习近平总书记强调，要坚持稳中求进、以进促稳、先立后破；正确处理改革发展稳定关系，坚持党的领导和尊重人民首创精神相结合，坚持“摸着石头过河”和顶层设计相结合，坚持问题导向和目标导向相结合，坚持试点先行和全面推进相结合，坚持改革决策和立法决策相结合，注重改革的系统性、整体性、协同性，统筹各领域改革进展，形成整体效应；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；改革要重谋划，更要重落实。这些重要论述深刻阐明了经济改革应该坚持的重要方法论。新的起点上，要紧密围绕党中央关于经济体制改革作出的系列重大决策部署，更加注重系统集成，更加注重突出重点，更加注重改革实效，努力取得实实在在的效果。

III

三

General Secretary Xi Jinping has pointed out that as China’s development has reached its current stage, development and reform are highly integrated; every step forward in development requires a step forward in reform, and the continuous advance of reform can in turn provide strong impetus for development. At present, China is in a critical period of consolidating the foundation for and comprehensively advancing the basic realisation of socialist modernisation, facing the arduous task of further deepening economic system reform. It is necessary to deeply grasp the economic reform theory of Xi Jinping’s economic thought, focus on the institutional and mechanistic obstacles that constrain high-quality development, further promote deep-level reform, and better align relations of production with productive forces, the superstructure with the economic base, and national governance with social development, so as to continuously strengthen the driving force of development and social vitality.

习近平总书记指出，我国发展走到今天，发展和改革高度融合，发展前进一步就需要改革前进一步，改革不断前进也能为发展提供强劲动力。当前，我国正处在基本实现社会主义现代化夯实基础、全面发力的关键时期，面临着进一步深化经济体制改革的艰巨任务。要深刻领会习近平经济思想的经济改革理论，聚焦制约高质量发展的体制机制障碍，进一步推进深层次改革，推动生产关系和生产力、上层建筑和经济基础、国家治理和社会发展更好相适应，持续增强发展动力和社会活力。

Focus on deepening reform to build a high-level socialist market economy system and strengthen the driving force of high-quality development. The high-level socialist market economy system is an important guarantee for Chinese-path modernisation. At present, problems such as imperfect market system rules, unsmooth factor flows, insufficient vitality of business entities, and government misplacement, overstepping, and absence are relatively prominent, and urgently need to be resolved through reform. It is necessary to uphold and implement the “two unswervinglys” [4]4 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., guarantee from the legal and institutional levels the equal use of factors of production, fair participation in market competition, and effective protection of lawful rights and interests, and fully stimulate the vitality of all types of business entities. Accelerate the improvement of the institutional mechanism for market-based allocation of factors, establish and improve a unified urban-rural construction land market, a fully functional capital market, a smoothly flowing labour market, and an efficient technology market for transformation, and promote the efficient allocation of various factor resources. Improve the macro-control system, coordinate and advance reforms in key areas such as fiscal and taxation systems and finance, strengthen the coordination of fiscal and monetary policies, and enhance the effectiveness of macroeconomic governance.

聚焦构建高水平社会主义市场经济体制深化改革，增强高质量发展的动力。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。当前，市场制度规则不完善、要素流动不顺畅、经营主体活力不够强、政府错位越位缺位等问题比较明显，迫切需要在改革中加以解决。要坚持和落实“两个毫不动摇”，从法律和制度上保障平等使用生产要素、公平参与市场竞争、有效保护合法权益，充分激发各类经营主体活力。加快完善要素市场化配置体制机制，建立健全城乡统一的建设用地市场、功能完善的资本市场、流动顺畅的劳动力市场、转化高效的技术市场，促进各类要素资源高效配置。完善宏观调控制度体系，统筹推进财税、金融等重点领域改革，加强财政、货币政策协同，提升宏观经济治理效能。

Focus on deepening reform to build a strong domestic market and accelerate the formation of a new development pattern. Strengthening the domestic economic cycle and rapidly forming a strong domestic economic circulation system is the strategic foundation for responding to changes and seizing the initiative in a complex situation. At present, the prominent contradiction in China’s economy is the imbalance between strong supply and weak demand, which has institutional and mechanistic causes. It is necessary to adhere to the strategic basis of expanding domestic demand, closely integrate improving people’s livelihoods with promoting consumption and investing in physical assets with investing in people, and enhance the endogenous driving force and reliability of the domestic economic cycle. Focus prominently on increasing residents’ consumption capacity, improve the long-term mechanism for expanding consumption, establish and improve management methods that adapt to new consumption formats, new models, and new scenarios, reduce restrictive measures, and vigorously boost consumption. Improve the institutional mechanism for government investment to effectively drive social investment, perfect the mechanism for stimulating the vitality of social capital investment and promoting the implementation of investment, and form a market-led endogenous growth mechanism for effective investment. Closely follow the requirements of “five unifications and one opening” [5]5 The “five unifications and one opening” (五统一、一开放) refers to the requirements for building a unified national market: unified basic system, unified market facilities, unified factor and resource markets, unified commodity and service markets, unified market supervision, and further opening up the market., deeply advance the construction of a unified national market, and improve the statistical, fiscal, and assessment systems conducive to building a unified national market.

聚焦建设强大国内市场深化改革，加快构建新发展格局。做强国内大循环，加快形成强大国内经济循环体系，是复杂形势中应对变局、赢得主动的战略依托。当前，我国经济供强需弱矛盾突出，其中就有体制机制的原因。要坚持扩大内需这个战略基点，坚持惠民生和促消费、投资于物和投资于人紧密结合，增强国内大循环内生动力和可靠性。突出抓好增强居民消费能力，完善扩大消费长效机制，建立健全适应消费新业态新模式新场景的管理办法，减少限制性措施，大力提振消费。健全政府投资有效带动社会投资体制机制，完善激发社会资本投资活力和促进投资落地机制，形成市场主导的有效投资内生增长机制。紧紧围绕“五统一、一开放”的要求，纵深推进全国统一大市场建设，完善有利于统一大市场建设的统计、财税、考核制度。

Focus on deepening reform to accelerate high-level scientific and technological self-reliance and self-strengthening, and accelerate the formation of relations of production that are more compatible with new quality productive forces. Developing new quality productive forces is the intrinsic requirement and important focus for promoting high-quality development. In recent years, with the accelerated development of new quality productive forces, some of China’s important technologies and industries have entered the world’s advanced ranks, but many problems remain. For example, investment in basic research is relatively insufficient, some key core technologies are controlled by others, there is a “two-skin” [6]6 “Two-skin” (两张皮) is a Chinese idiom describing a situation where two things that should be closely integrated are separated and do not connect, here referring to the disconnect between scientific research and industrial application. separation between technology and industry, the market-based science and technology financial support system is imperfect, and the alignment between talent cultivation and industrial demand is insufficient. It is necessary to advance education, science and technology, and talent development as an integrated whole, accelerate the improvement of the new nationwide system for mobilising resources, carry out collaborative research on key core technologies, and promote the development of strategic emerging industries and future industries. Improve the institutional mechanism for developing new quality productive forces according to local conditions, and promote the formation of modern industrial systems in various regions that complement each other’s advantages, have distinctive characteristics, and have a reasonable structure. Build a science and technology financial system that is compatible with scientific and technological innovation, improve the multi-level capital market system, give full play to the guiding role of fiscal funds, and drive more social capital to invest early, invest small, invest long-term, and invest in hard technology, injecting strong momentum into achieving high-level scientific and technological self-reliance and self-strengthening.

聚焦加快高水平科技自立自强深化改革，加快形成同新质生产力更相适应的生产关系。发展新质生产力是推动高质量发展的内在要求和重要着力点。近年来，随着新质生产力加快发展，我国一些重要技术和产业跻身世界先进行列，但仍存在不少问题，比如，基础研究投入相对不足，一些关键核心技术受制于人，科技和产业“两张皮”，市场化的科技金融支持体系不完善，人才培养与产业需求适配性不够，等等。要一体推进教育科技人才发展，加快完善新型举国体制，开展关键核心技术协同攻关，推动战略性新兴产业和未来产业发展。健全因地制宜发展新质生产力体制机制，促进各地发展优势互补、各具特色、结构合理的现代化产业体系。构建与科技创新相适应的科技金融体制，完善多层次资本市场体系，充分发挥财政资金引导作用，带动更多社会资本投早、投小、投长期、投硬科技，为实现高水平科技自立自强注入强大动能。

Focus on deepening reform to build an income distribution system that reflects efficiency and promotes fairness, and promote more obvious substantive progress in common prosperity for all the people. At present, China still faces some prominent problems in the field of income distribution. For example, the share of residents’ income in national income distribution and the share of labour remuneration in primary distribution are still low, and there are still unreasonable income gaps between different ownership types, industries, and groups. The income distribution pattern needs further optimisation. It is necessary to adhere to the principle of distribution according to work as the mainstay and allowing coexistence of multiple modes of distribution, build a distribution system that coordinates primary distribution, redistribution, and tertiary distribution, effectively increase the income of low-income groups, steadily expand the size of the middle-income group, and reasonably regulate excessively high incomes. In the primary distribution link, improve the distribution mechanism whereby various factors are evaluated by the market for their contribution and receive remuneration according to their contribution, raise the proportion of labour remuneration in primary distribution, and strive to achieve the synchronisation of the increase in labour remuneration with the increase in labour productivity. In the redistribution link, increase the intensity and precision of regulation through taxation, social security, and transfer payments, and solidly promote the equalisation of basic public services in areas of people’s livelihood such as education, medical care, housing, and elderly care. In the tertiary distribution link, actively improve various forms of public welfare mechanisms such as social assistance, private donations, and charitable undertakings.

聚焦构建体现效率、促进公平的收入分配制度深化改革，推动全体人民共同富裕取得更为明显的实质性进展。当前我国在收入分配领域还面临一些突出问题，比如居民收入在国民收入分配中的比重、劳动报酬在初次分配中的比重仍然偏低，不同所有制、行业和群体之间还存在不合理的收入差距等，收入分配格局有待进一步优化。要坚持按劳分配为主体、多种分配方式并存，构建初次分配、再分配、第三次分配协调配套的分配制度体系，有效增加低收入群体收入、稳步扩大中等收入群体规模、合理调节过高收入。初次分配环节，健全各类要素由市场评价贡献、按贡献决定报酬的分配机制，提高劳动报酬占初次分配的比重，努力实现劳动报酬提高与劳动生产率提高同步。再分配环节，加大税收、社保、转移支付等调节力度与精准性，扎实推进教育、医疗、住房、养老等民生领域基本公共服务均等化。第三次分配环节，积极完善社会救助、民间捐赠、慈善事业等多种形式的公益机制。

Author: Chair Professor, Shanghai University of Finance and Economics

作者：上海财经大学讲席教授