The great rejuvenation of China

2. deeply understand the connotation of high-quality development

High-quality economic development can be understood from both narrow and broad perspectives. In a narrow sense, high-quality economic development means that an economy (or enterprise) can rationally allocate production factors through scientific and technological means in terms of input, promote efficiency changes, realize the allocation of resource factors from extensive operation to intensive and economical operation, and greatly improve the utilization efficiency of resource factors; It can promote quality change and power change through technological innovation and management innovation, so that the output quality and efficiency can be significantly improved. In a broad sense, understanding high-quality economic development is not only limited to the scope of economic growth, but also considers social, political, cultural and ecological influencing factors. Specifically, high-quality economic development should contain the following connotations. First, high-quality development is the development that embodies the new development concept. The Fifth Plenary Session of the 18th CPC Central Committee proposed to establish and adhere to the development concept of innovation, coordination, green, openness and sharing.

Promoting China’s economic and social development according to the new development concept is a general trend, of which innovation is the first driving force to lead development, focusing on solving the problem of development power; coordination is the inherent requirement of sustainable and healthy development, focusing on solving the problem of unbalanced development; green is the inevitable condition for sustainable development and an important embodiment of people’s pursuit of a better life, focusing on solving the problem of harmony between man and nature; opening up is the only way for the country to prosper and develop, and focusing on solving the problem of internal and external linkage of development; Sharing is the essence of socialism with Chinese characteristics, focusing on solving the problem of social fairness and justice. The new development concept is China’s action guide to solve development problems, enhance development momentum, and cultivate development advantages.

Second, high-quality development is the development of high-quality supply and high-quality demand. From the perspective of supply, high-quality development should have a relatively complete industrial system, networked and intelligent production organization, strong innovation, brand influence, core competitiveness and the ability to discover and capture demand. From the perspective of demand, high-quality development should continue to meet the personalized, diversified and upgrading needs of the people, which in turn leads to changes in the supply system and structure, and supply changes continue to generate new demand.

Third, high-quality development is the development that maximizes the benefits of input and output. An important symbol of high-quality development is to continuously improve the input and output efficiency of labor, capital, land, resources, environment and other factors, continuously improve the contribution rate of scientific and technological progress, and continuously improve total factor productivity. As Comrade Xi Jinping pointed out, “economic development is to improve the efficiency of the allocation of resources, especially scarce resources, and to produce as many products as possible with as few resources as possible and obtain the greatest possible benefits.”1 Fourth, the development of high seat capacity is the development of smooth economic circulation. The economic cycle is the process of benign interaction between production and circulation, distribution and consumption, virtual and physical, domestic and foreign, which is the basis for sustainable economic development. At present, there are three major imbalances in China’s economy: the structural imbalance between supply and demand in the real economy, the imbalance between finance and the real economy, and the imbalance between real estate and the real economy. This is a concrete manifestation of the poor economic cycle. To promote high-quality development, we must smooth the national economic cycle, accelerate the construction of a unified, open, competitive and orderly modern market system, improve the ability of the financial system to serve the real economy, and form a virtuous circle of domestic market and production subjects, economic growth and employment expansion, and finance and real economy.

Fifth, high-quality development is development with scientific and rational distribution. Income distribution is both the result of economic operation and the driving force of economic development. The quality of income distribution directly reflects the advantages and disadvantages of the economic structure. Comrade Xi Jinping pointed out when talking about the new normal: “To promote economic development, we must pay more attention to improving the quality and efficiency of development. Measuring the quality and efficiency of development means that investment has a return, products have a market, enterprises have profits, employees have income, the government has taxes, and the environment has improvement, which is the development we want. 1 The investment mentioned here has a return, the enterprise has profits, the employees have income, and the government has taxes, which is how to distribute it reasonably.

3. Accelerate the construction of a modern economic system

To promote high-quality development, we must build a modern economic system. Building a modern economic system is a major strategic deployment made by Comrade Xi Jinping for economic construction at the 19th National Congress of the Communist Party of China. At present, China’s economic development is in the critical period of transforming the development mode, optimizing the economic structure, and transforming the growth momentum, and building a modern economic system is not only an urgent requirement for crossing the threshold, but also a strategic goal of China’s development.

To build a modern economic system, the basic principle is quality first, efficiency first; the main line is to deepen supply-side structural reform; the basic path is to promote the quality change, efficiency change, power change of economic development, and improve total factor productivity; the focus is to accelerate the construction of the real economy, scientific and technological innovation, modern finance, human resources coordinated development of the industrial system; the institutional guarantee is to build an economic system with effective market mechanism, vitality of micro subjects, and degree of macro-control; the fundamental goal is to continuously enhance the innovation and competitiveness of China’s economy. In short, the modern economic system is an economic system led by the new development concept and high-quality development as the core, with a reasonable economic structure, strong innovation momentum, intensive development methods, real economic revitalization, and sound institutional mechanisms.

The modern economic system is an economic system in which the modernization of productive forces and the modernization of production relations interact benignly. Comrade Xi Jinping was the third in the 19th Politburo of the CPC Central Committee on January 30, 2018

The collective study pointed out: “The modern economic system is an organic whole composed of the interrelationships and internal connections of all links, levels and fields of social and economic activities.1 In this regard, he clearly put forward the organic composition and specific goals of the “seven systems”, that is, (1) build an industrial system led by innovation and coordinated development, realize the coordinated development of the real economy, scientific and technological innovation, modern finance, and human resources, and continuously increase the contribution share of scientific and technological innovation in the development of the real economy. The ability of modern financial services to the real economy has been continuously enhanced, and the role of human resources in supporting the development of the real economy has been continuously optimized(2) Build a unified, open and orderly market system, realize smooth market access, open and orderly market, full market competition, and standardized market order, and accelerate the formation of a modern market system in which enterprises operate independently and compete fairly, consumers freely choose their own consumption, and commodities and factors flow freely and exchange equally; (3) Build an income distribution system that embodies efficiency and promotes fairness, and realizes reasonable income distribution, social fairness and justice, All the people will prosper together, promote the equalization of basic public services, and gradually narrow the income distribution gap ;(4) Build an urban and rural regional development system that highlights advantages and coordinates linkages, realizes benign regional interaction, integrated urban and rural development, and overall optimization of land and sea, and cultivates and gives play to regional comparative advantages. Strengthen the complementarity of regional advantages and shape a new pattern of coordinated regional development; (5) Build a resource-saving and environment-friendly green development system, realize green cycle and low-carbon development, harmonious coexistence between man and nature, firmly establish and practice the concept that green water and green mountains are golden mountains and silver mountains, and form a new pattern of harmonious development and modernization of man and nature;( 6) Build a diversified, balanced, safe and efficient comprehensive opening system, develop a higher-level open economy, and promote the transformation of opening up in the direction of optimizing structure, expanding depth and improving efficiency; (7) Build an economic system that gives full play to the role of the market and better plays the role of the government, so as to achieve effective market mechanisms, vitality of micro-subjects, and degree of macro-control.

To build a modern economic system, it is necessary to fulfill the following tasks at present and for some time to come.

First, vigorously develop the real economy and build a solid foundation for a modern economic system. The real economy is the foundation of a country’s economy, the fundamental source of wealth creation, and an important pillar of national strength.

In order to create a down-to-earth, hard-working entrepreneurship, industrial prosperity development environment and social atmosphere. The optimization and upgrading of industrial structure is a key measure to improve the comprehensive competitiveness of the real economy. It is necessary to accelerate the transformation and upgrading of traditional industries, deeply promote the deep integration of informatization and industrialization, focus on cultivating strategic emerging industries, vigorously develop the service industry, especially the modern service industry, actively cultivate new formats and new business models, and build a new system for modern industrial development. It is necessary to promote the deep integration of the Internet, big data, artificial intelligence and the real economy, accelerate the digitalization and intelligence of traditional industries, promote industrial technological change and optimization and upgrading with intelligent manufacturing as the main direction of attack, promote the fundamental transformation of manufacturing industry models and enterprise forms, drive “revolution” with “Dingxin”, drive stock with increments, and promote China’s industry to move towards the middle and high end of the global value chain.

The second is to accelerate the implementation of the innovation-driven development strategy and strengthen the strategic support of the modern economic system. Strengthen the construction of the national innovation system, step up the layout of national laboratories, reorganize the state key laboratory system, increase support for the innovation of small and medium-sized enterprises, strengthen the protection and application of intellectual property rights, and form an effective innovation incentive mechanism. Promote the deep integration of scientific and technological innovation and economic and social development, and shape more innovation-driven and first- mover leading development.

The third is to actively promote the coordinated development of urban and rural areas and optimize the spatial layout of the modern economic system. It is necessary to cultivate and give play to regional comparative advantages, implement the main functional area system, strengthen the complementarity of regional advantages, broaden the development space in coordinated development, and enhance development stamina in strengthening weak areas. Implement the coordinated regional development strategy, promote the coordinated development of the Beijing- Tianjin-Hebei region and the development of the Yangtze River Economic Belt, build the Guangdong-Hong Kong-Macao Greater Bay Area, and promote the integrated development of the Yangtze River Delta, ecological protection and high-quality development of the Yellow River Basin. Solidly promote the strategy of rural revitalization, adhere to the priority development of agriculture and rural areas, establish and improve the institutional mechanisms and policy systems for integrated development of urban and rural areas in accordance with the general requirements of prosperous industry, ecological livability, civilized rural customs, effective governance and rich life, make overall plans to promote rural economic construction, political construction, cultural construction, social construction, ecological civilization construction and party building, accelerate the modernization of rural governance systems and governance capabilities, and accelerate the modernization of agriculture and rural areas. Take the road of socialist rural revitalization with Chinese characteristics, let agriculture become a leading industry, make farmers an attractive occupation, and let the countryside become a beautiful home to live and work in peace and contentment.

The fourth is to promote all-round opening up and enhance the international competitiveness of the modern economic system. Make better use of global resources and markets, and promote the transformation from the opening of commodity and factor flows to the opening of institutions such as rules.

Relax market access, fully implement the pre-establishment national treatment plus negative list management system, protect the legitimate rights and interests of foreign investors in China, especially intellectual property rights, and allow sole proprietorship in more fields. We will continue to actively promote international exchanges and cooperation under the framework of the Belt and Road.

Fifth, deepen the reform of the economic system and improve the institutional guarantee for the modern economic system. The reform of the economic system must focus on improving the property rights system and the market-oriented configuration of factors, so as to achieve effective incentives for property rights, free flow of factors, flexible price response, fair and orderly competition, and survival of the fittest. Accelerate the improvement of basic economic systems such as the socialist market economic system with public ownership as the mainstay, the common development of various ownership economies, distribution according to work as the mainstay, and the coexistence of various distribution methods; accelerate the reform of state-owned assets and state-owned enterprises, further support the development of private enterprises, and stimulate the vitality of innovation and entrepreneurship in the whole society; accelerate the reform of the fiscal, taxation, and financial systems, and resolutely eliminate the shortcomings of various systems and mechanisms.

Comrade Xi Jinping profoundly pointed out: “Building a modern economic system is a big article, not only a major theoretical proposition, but also a major practical topic.” 1 In accordance with the arrangements and requirements of the Party Central Committee, we must enhance the innovation and competitiveness of our economy by building a modern economic system, promote China’s economic development to a new vitality, move to a new level, and achieve high-quality development.