The Epochal Characteristics of the Party’s Leadership in Building a Modernized Economic System

As an organic whole in which all links, levels, and fields of socio-economic activity are interconnected, building a modernized economic system is a complex, long-term systemic project. The *Resolution of the Central Committee of the Communist Party of China on the Major Achievements and Historical Experience of the Party over the Past Century* [1]1 The *Resolution of the Central Committee of the Communist Party of China on the Major Achievements and Historical Experience of the Party over the Past Century* was adopted at the Sixth Plenary Session of the 19th CPC Central Committee in November 2021. points out: “The Party strengthened strategic planning and unified leadership over economic work, improved the systems and mechanisms for the Party’s leadership over economic work… and made major decisions such as adhering to the theme of high-quality development, taking supply-side structural reform as the main line, and building a modernized economic system.” [2]2 This is a direct quotation from the resolution cited in note 1. Based on the “Two Centenary Goals,” [3]3 The “Two Centenary Goals” are: (1) building a moderately prosperous society in all respects by the centenary of the CPC in 2021; (2) building a great modern socialist country in all respects by the centenary of the People’s Republic of China in 2049. adhering to the theme of high-quality economic development and the main line of supply-side structural reform, and implementing the new development philosophy, the Party has made top-level designs for a series of theoretical and practical issues concerning the building of a modernized economic system. Facing the historical juncture where the first centenary goal has been achieved and China has entered a new stage of development, the Party, integrating domestic and international situations, has organically combined the building of a modernized economic system with the creation of a new development pattern, endowing the building of a modernized economic system with new content and implementation pathways.

作为社会经济活动各个环节、各个层面、各个领域相互联系的一个有机整体，建设现代化经济体系是一个复杂的、长期的系统工程。《中共中央关于党的百年奋斗重大成就和历史经验的决议》中指出：“党加强对经济工作的战略谋划和统一领导，完善党领导经济工作体制机制……作出坚持以高质量发展为主题、以供给侧结构性改革为主线、建设现代化经济体系……重大决策。”党立足“两个一百年”奋斗目标，坚持经济高质量发展的主题和供给侧结构性改革的主线，贯彻新发展理念，就现代化经济体系建设的一系列理论和现实问题作出顶层设计。面对第一个百年奋斗目标已经实现、我国进入新发展阶段的历史方位，党结合国内国际形势，将建设现代化经济体系与构建新发展格局有机结合，赋予了建设现代化经济体系新的内容与实现路径。

Adhering to supply-side structural reform and implementing the new development philosophy, making top-level designs for building a modernized economic system

坚持供给侧结构性改革、贯彻新发展理念，就建设现代化经济体系作出顶层设计

The report to the 19th National Congress of the CPC [4]4 The 19th National Congress of the CPC was held in October 2017. pointed out: “China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development. This is a pivotal period for transforming our growth model, improving our economic structure, and fostering new drivers of growth. Building a modernized economic system is an urgent requirement for getting us smoothly through this critical transition and a strategic goal for China’s development.” [5]5 This is a direct quotation from the report to the 19th National Congress. This indicates that building a modernized economic system is not only an urgent requirement in response to the actual national conditions but also a strategic plan based on long-term economic development. The “actual national conditions” refer to the fact that socialism with Chinese characteristics has entered a New Era, and the principal contradiction facing Chinese society has evolved into the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life. The economic development strategy needs to adapt to the stage characteristics of high-quality development. The report to the 19th National Congress of the CPC pointed out: “We must put quality first and give priority to performance, take supply-side structural reform as our main task, and work hard to achieve higher-quality, more efficient, more equitable, and more sustainable development through reform.” [6]6 This is a direct quotation from the report to the 19th National Congress. This indicates that on the path of building a modernized economic system, we must adhere to the theme of high-quality development and the main line of supply-side structural reform. “Based on long-term economic development” means that the modernized economic system is an important component of the long-term vision of building a great modern socialist country, and the two are consistent in direction and path. Therefore, the new development philosophy, which focuses on solving development problems and consolidating development advantages, has become the long-term theoretical foundation for building a modernized economic system.

党的十九大报告指出：“我国经济已由高速增长阶段转向高质量发展阶段，正处在转变发展方式、优化经济结构、转换增长动力的攻关期，建设现代化经济体系是跨越关口的迫切要求和我国发展的战略目标。”这表明，建设现代化经济体系不仅是针对现实国情的紧迫要求，同时也是立足长期经济发展的战略规划。“现实国情”指的是中国特色社会主义进入新时代，我国社会的主要矛盾已转化为人民日益增长的美好生活需要和不平衡不充分的发展之间的矛盾。经济发展战略需要适应高质量发展的阶段特征。党的十九大报告指出：“必须坚持质量第一、效益优先，以供给侧结构性改革为主线，推动经济发展质量变革、效率变革、动力变革”。这表明在建设现代化经济体系的道路上，必须坚持高质量发展的主题和供给侧结构性改革的主线。“立足长期经济发展”指的是现代化经济体系是社会主义现代化强国远景目标的重要组成部分，两者具有方向上、道路上的一致性。因此，聚焦破解发展难题、厚植发展优势的新发展理念成为现代化经济体系建设的长期的理论基础。

Supply-side structural reform is an urgent choice to solve the bottlenecks in economic development. Facing development challenges such as the manufacturing industry being “large but not refined,” the low position of the industrial chain in the international division of labor, and insufficient innovation-driven leadership, the Party Central Committee has firmly grasped the key issue of the contradiction between supply and demand structure in the real economy, proposing to “focus on the real economy in economic development, and take improving the quality of the supply system as the main direction.” [7]7 This is a direct quotation from the report to the 19th National Congress. In terms of specific implementation pathways, measures have been proposed such as accelerating the development of advanced manufacturing, advancing the “three cuts, one reduction, and one improvement,” [8]8 “Three cuts, one reduction, and one improvement” refers to cutting overcapacity, reducing excess inventory, deleveraging, lowering costs, and strengthening areas of weakness. and promoting the entrepreneurial spirit and the spirit of craftsmanship.

供给侧结构性改革是解决经济发展瓶颈的迫切选择。面对制造业发展“大而不精”、产业链国际分工地位较低、创新引领不足等发展难题，党中央紧紧抓住了实体经济供需结构矛盾这一问题关键，提出“把发展经济的着力点放在实体经济上，把提高供给体系质量作为主攻方向”。在具体实现路径上，提出加快发展先进制造业、推进“三去一降一补”、弘扬企业家精神和工匠精神等举措。

Implementing the new development philosophy is the directional guide and theoretical basis for building a modernized economic system. The 13th Five-Year Plan [9]9 The 13th Five-Year Plan covers the period 2016–2020. proposed the new development philosophy of “innovation, coordination, green, openness, and sharing,” and systematically expounded its connotation. The 19th National Congress of the CPC organically combined the implementation of the new development philosophy with the building of a modernized economic system, systematically and comprehensively summarizing the policy measures for building a modernized economic system from five perspectives: accelerating the building of an innovative country, implementing the rural revitalization strategy, implementing the coordinated regional development strategy, accelerating the improvement of the socialist market economy system, and promoting the formation of a comprehensive opening-up pattern. As the core of the overall national development, innovation is the strategic support for building a modernized economic system; the rural revitalization strategy and the coordinated regional development strategy aim to solve the problems of unbalanced, inadequate, and non-environmentally friendly development; economic system reform focuses on improving the property rights system and the market-based allocation of factors of production, promoting a series of institutional reforms in fiscal, tax, monetary, and financial fields, reflecting the people-centered concept of shared development; promoting a new situation of comprehensive opening-up with the Belt and Road Initiative as the focus reflects the concept of shared interests in openness.

贯彻新发展理念是建设现代化经济体系的方向指引与理论基点。“十三五”规划提出了“创新、协调、绿色、开放、共享”的新发展理念，并系统阐述了新发展理念的内涵。党的十九大将贯彻新发展理念和建设现代化经济体系有机结合，从加快建设创新型国家、实施乡村振兴战略、实施区域协调发展战略、加快完善社会主义市场经济体制和推动形成全面开放新格局这五个角度，系统全面地总结了建设现代化经济体系的政策举措。作为国家发展全局的核心，创新是建设现代化经济体系的战略支撑；乡村振兴战略与区域协调发展战略旨在解决发展不平衡、不充分、不环保的问题；经济体制改革以完善产权制度和要素市场化配置为重点，推进财税、货币、金融等一系列制度改革，体现了以人民为中心的共享发展观；以“一带一路”建设为重点推进全面开放新局面，体现了开放中的利益共同观。

From a practical perspective, the Party’s leadership in building a modernized economic system exhibits the following characteristics. First, equal emphasis is placed on long-term planning and short-term tackling of key problems. Therefore, it is necessary to adhere to the main line of supply-side structural reform while implementing the new development philosophy, focusing on the “Two Centenary Goals” and building a great modern socialist country. Second, theoretical innovation leads the path of practice. Building a modernized economic system takes the new development philosophy as its theoretical cornerstone and practical standard. Third, comprehensive and overall coordinated advancement is carried out. In the collective study session of the Political Bureau of the CPC Central Committee on building a modernized economic system, [10]10 This refers to the third collective study session of the Political Bureau of the 19th CPC Central Committee, held on January 30, 2018, on the topic of building a modernized economic system. General Secretary Xi Jinping, coordinating the overall situation of economic construction, expounded on the content of the modernized economic system. Fourth, specific policies are solid and effective. Since the 19th National Congress of the CPC, various policy measures for building a modernized economic system have been steadily advanced. China’s economic aggregate has reached new heights, the quality and efficiency of development have continuously improved, fruitful achievements have been made in building an innovative country, and the path of Chinese-path modernization has become increasingly broad. Fifth, equal emphasis is placed on drawing on beneficial achievements and maintaining Chinese characteristics. General Secretary Xi Jinping pointed out: “The modernized economic system we build should draw on the beneficial practices of developed countries, but it must also conform to China’s national conditions and have Chinese characteristics.” [11]11 This is a direct quotation from Xi Jinping’s speech at the collective study session cited in note 10.

从现实角度看，党领导建设现代化经济体系呈现出以下特征。一是远景规划与短期攻关并重。因此，既要坚持供给侧结构性改革的主线，又要贯彻新发展理念，着眼于“两个一百年”奋斗目标和建设社会主义现代化强国。二是以理论创新引领实践道路。建设现代化经济体系以新发展理念作为理论基石与实践标准。三是全面整体统筹推进。在中共中央政治局就建设现代化经济体系的集体学习中，习近平总书记统筹经济建设全局，阐述了现代化经济体系的内容。四是具体政策扎实有效。党的十九大以来，现代化经济体系建设的各项政策举措稳步推进，我国经济总量跃上新台阶，发展质量和效益不断提升，创新型国家建设成果丰硕，中国式现代化道路越走越宽阔。五是借鉴有益成果与保持中国特色并重。习近平总书记指出：“我们建设的现代化经济体系，要借鉴发达国家有益做法，更要符合中国国情、具有中国特色。”

Based on the new stage of development, creating a new development pattern provides objective standards for building a modernized economic system

立足新发展阶段，构建新发展格局，为建设现代化经济体系提供客观标准

General Secretary Xi Jinping pointed out, “China is currently in the best period of development since modern times, while the world is undergoing changes unseen in a century; the two are interwoven and mutually reinforcing.” [12]12 This is a direct quotation from Xi Jinping’s speech at the Central Conference on Work Related to Foreign Affairs in June 2018. The COVID-19 pandemic has severely impacted the world economy, and the global demand market has shrunk. At the same time, China has achieved its first centenary goal and is marching towards a new journey of comprehensively building a modern socialist country. Facing the complex and volatile economic situation, the *Outline of the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035* [13]13 The 14th Five-Year Plan covers the period 2021–2025, with long-range objectives through 2035. proposed to “accelerate the creation of a new development pattern with domestic circulation as the mainstay and domestic and international circulations reinforcing each other.” [14]14 This is a direct quotation from the outline cited in note 13. This strategic arrangement of creating a new development pattern clarifies the issue of coherence and coordination within the modernized economic system, answers the question of how to measure the effectiveness of building a modernized economic system, and endows the building of a modernized economic system with macro-level direction and new content.

习近平总书记指出，“当前我国处于近代以来最好的发展时期，世界处于百年未有之大变局，两者同步交织、相互激荡”。新冠肺炎疫情重挫世界经济，全球需求市场萎缩。与此同时，中国已经完成第一个百年奋斗目标，正向着全面建设社会主义现代化国家新征程进军。面对错综复杂的经济形势，《中华人民共和国国民经济和社会发展第十四个五年规划和2035年远景目标纲要》提出，要“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”。构建新发展格局这一战略安排，明确了现代化经济体系的贯通协调问题、回答了如何衡量现代化经济体系建设成效的问题，赋予了现代化经济体系建设的宏观指向与新的内容。

The new development pattern is the macro-level guide and objective standard for building a modernized economic system. Regarding how to create a new development pattern, the Fifth Plenary Session of the 19th CPC Central Committee [15]15 The Fifth Plenary Session of the 19th CPC Central Committee was held in October 2020. pointed out: “Adhere to the strategic basis of expanding domestic demand, accelerate the cultivation of a complete domestic demand system, organically combine the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform, and use innovation-driven, high-quality supply to lead and create new demand.” [16]16 This is a direct quotation from the communiqué of the Fifth Plenary Session. At the same time, it is necessary to “smooth domestic circulation, promote the interaction between domestic and international circulations, comprehensively boost consumption, and expand investment space,” [17]17 This is a direct quotation from the communiqué of the Fifth Plenary Session. systematically explaining the specific measures for creating a new development pattern from these perspectives. It can be seen that the new development pattern, first, emphasizes expanding domestic demand, and second, emphasizes the smooth circulation of the macro-economy. This provides directional guidance and standards for how to coordinate the various aspects of the modernized economic system and how to build an effective modernized economic system. To solve the problems of “domestic demand” and “smooth circulation” emphasized by the new development pattern, it is necessary to implement the various measures for building a modernized economic system; conversely, the effectiveness of building a modernized economic system is also tested by these two key issues.

新发展格局是现代化经济体系建设的宏观指引和客观标准。就如何构建新发展格局，党的十九届五中全会指出：“坚持扩大内需这个战略基点，加快培育完整内需体系，把实施扩大内需战略同深化供给侧结构性改革有机结合起来，以创新驱动、高质量供给引领和创造新需求。”同时还要“畅通国内大循环，促进国内国际双循环，全面促进消费，拓展投资空间”这几个角度系统阐释构建新发展格局的具体举措。可以看出，新发展格局一是强调扩大内需，二是强调宏观经济的循环畅通，这就为如何协调现代化经济体系的各个方面、如何建设有成效的现代化经济体系提供了方向指引和标准。要解决新发展格局强调的“内需”和“循环畅通”问题，就要落实建设现代化经济体系的各项举措；反过来建设现代化经济体系的成效如何，也由这两个关键问题来检验。

The new pattern of development has endowed the building of a modernized economic system with new content. First, expanding domestic demand has become the strategic foundation. This requires that the main line of supply-side structural reform and other measures for building a modernized economic system be adapted to domestic demand and oriented toward expanding it. Second, smoothing the domestic circulation has become an urgent requirement. This requires that in implementing the innovation-driven development strategy and deepening economic system reform, attention be paid to the coordination of upstream and downstream industrial chains and to inter-industry coordinated development. Third, optimizing the investment structure. This requires that in implementing the rural revitalization strategy and the coordinated regional development strategy, attention be paid to the driving role of new-type urbanization and new infrastructure construction, and to investment in strategic emerging industries. Fourth, coordinating development and security. In the process of building a modernized economic system, it is essential to firmly grasp the security of industrial chains, resolve the situation where some key technologies are subject to others’ control; closely monitor macroeconomic dynamics, and avoid imbalances in supply and demand and the triggering of systemic financial risks.

新发展格局赋予了建设现代化经济体系新的内容。一是扩大内需成为战略基点。这就要求供给侧结构性改革这一主线、建设现代化经济体系的其他举措与内需相适应、以扩大内需为导向。二是畅通内循环成为迫切要求。这就要求在实施创新驱动发展战略、深化经济体制改革中需要注意上下游产业链协同、产业间协调发展问题。三是优化投资结构。这就要求实施乡村振兴战略和区域协调发展战略中要注重新型城镇化、新型基础设施建设的带动作用，要注重战略性新兴产业投资。四是统筹发展和安全。在建设现代化经济体系的过程中要牢牢把握产业链安全，解决部分关键技术受制于人的情况；密切关注宏观经济动态，避免出现供需失衡和引发系统性金融风险。

The new pattern of development and the modernized economic system are mutually reinforcing, embodying the upholding fundamental principles and breaking new ground [18] in the Party’s leadership in building a modernized economic system. “Upholding fundamental principles” refers to unswervingly implementing the spirit of the 19th National Congress of the CPC [19] and carrying out the Central Committee’s strategic arrangements and guiding principles for building a modernized economic system, consistently adhering to the main line of supply-side structural reform and the theme of high-quality development, and always using the new development philosophy [20] as the guiding framework. “Breaking new ground” refers to the Party Central Committee’s ability, in the face of complex and volatile domestic and international economic situations, especially the severe impact of the COVID-19 pandemic on the global economy, to keep pace with the times and expand the practical standards and macro-level layout of the modernized economic system while adhering to its core.

新发展格局与现代化经济体系互为表里，体现了党领导建设现代化经济体系的守正创新。“守正”指的是坚定不移贯彻党的十九大精神，并落实中央关于建设现代化经济体系的战略安排和指示精神，始终坚持供给侧结构性改革的主线、高质量发展的主题，始终以新发展理念提纲挈领。“创新”指的是党中央面对复杂多变的国内外经济形势，特别是新冠肺炎疫情发生以来对全球经济的严重影响，能够在坚持现代化经济体系内核的基础上，与时俱进拓展现代化经济体系的实践标准、宏观布局。

The building of a modernized economic system under the goal of the new pattern of development has the following characteristics. First, the standards are more explicit. The new pattern of development serves as a “touchstone” for building a modernized economic system. Second, the layout is more flexible. The building of a modernized economic system is closely integrated with the domestic and international economic situation. Third, the path is more concrete. The new pattern of development has identified domestic demand as the strategic foundation, providing a clearer directional guide for building a modernized economic system.

新发展格局目标下的现代化经济体系建设有以下几个特点。一是标准更加明确。建设现代化经济体系有了新发展格局这一“试金石”。二是布局更加灵活。建设现代化经济体系与国内国际经济形势紧密结合。三是路径更加具体。新发展格局确定了内需这一战略基点，使得建设现代化经济体系有了更加明确的道路指引。

In summary, as an important component of a great modern socialist country, the path of building a modernized economic system is a long-term process. The Communist Party of China has always adhered to centralized and unified leadership over economic work, devising an overall plan for building a modernized economic system; and, adapting to changing circumstances, it seizes the current principal contradiction, continuously endowing it with new content and characteristics. Upholding and strengthening the Party’s centralized and unified leadership over economic work is a new requirement put forward by the Party Central Committee with Comrade Xi Jinping at its core based on the New Era, and is an important part

总而言之，作为社会主义现代化强国的重要组成部分，现代化经济体系建设道路是一个长期过程。中国共产党始终坚持对经济工作的集中统一领导，为建设现代化经济体系谋篇布局；又因时而异，抓住当前主要矛盾，不断赋予新的内涵和特征。坚持和加强党对经济工作的集中统一领导，是以习近平同志为核心的党中央立足新时代提出的新要求，是习近平新时代中国特色社会主义经济思想的重要内容。只有坚持党的领导，才能蹄疾步稳推进建设现代化经济体系，才能实现社会主义现代化强国和中华民族伟大复兴的美好愿景。

Web editor: Paul

网络编辑：保罗