[Wen Wang Wen].
In October 2023, the ** Financial Work Conference put forward the concept of "financial power" for the first time, and put forward "the goal of accelerating the construction of a financial power". The historical mission and strategic tasks put forward by the decision-makers for China's financial industry are not only the specific work requirements of the previous five financial work conferences, such as "financial reform and opening up", "strengthening financial supervision" and "preventing systemic financial risks", but also the innovation and upgrading of Western financial theories and a profound summary of China's thousands of years of financial practiceWe will unswervingly follow the path of financial development with Chinese characteristics, provide strong support for the construction of a strong country and the great cause of the nation, and achieve the goal of accelerating the construction of a financial power.
From October 30th to 31st, the ** Financial Work Conference was held in Beijing. (Source: Xinhua News Agency).
Accelerating the construction of a financial power is an innovation and upgrade of Western financial logic.
In a way, world history is a history of finance. The development of finance has accompanied the evolution of human civilization as a whole. Archaeological evidence of financial activity can be traced back to the ancient Babylonian kingdom and the southern city of Uruk in the valley of the Two Rivers around 3000 BC. At that time, temples and palaces in ancient Babylon were used as safe places to store valuables, which can be seen as the early prototype of financial institutions. At the same time, Uruk began to support ** activities by means of loans and interest payments, which marked the birth of the ancient financial industry. With the development of currency exchange business and cross-regional commerce, modern banks were the first to be born in Europe, laying the foundation for value exchange and resource allocation for Europe's colonial expansion after the Middle Ages. After the emergence of a large number of early banks in Venice, Italy in the 16th century, the financial industry and its organizational forms developed rapidly in capitalist countries, laying a solid foundation for the establishment of a modern financial system, accelerating the concentration of cross-regional production activities, satisfying the needs of the European bourgeoisie for the primitive accumulation of money and market expansion, and also creating a large number of modern bankers, financiers and super-rich families. Through the bourgeois revolution and the modern democratic political system, these early wealthy people established the law of modern private ownership and "the sanctity of private property", which inspired more and more people to strive for wealth, and then formed an era atmosphere of adventurism and technological innovation to create high returns, which objectively promoted the rise of modern European and American powers in the form of foreign plunder and expansion. ①
From the history of the evolution of Western finance, it can be seen that the logic of the emergence of the financial industry is value exchange and resource allocation, and thousands of years of financial activities can be reduced to a series of value exchange behaviors across time and space. With the development of the times, from agricultural civilization to industrial civilization, the standards and forms of financial instruments, the organization of financial services, the types of financial institutions, and the coverage of financial markets have undergone revolutionary changes, but the essential ideas and internal logic of finance still remain at the level of value allocation for a long time. The continuous evolution of financial instruments and institutions reflects the needs of society and the changes in technology, but the fundamental task of finance is still to assist financial entities in value allocation. A series of modern financial activities, including Wall Street, gave birth to modern financial disciplines in the middle of the 20th century, but the research scope of traditional finance in the West still does not further involve the relationship between finance and politics, the state and the nation.
From the storage of valuables in ancient Babylon to the complex transactions of modern digital finance, the financial industry has struggled to meet society's needs for money, credit, risk management, and more. However, from the Dutch "Tulip Bubble" from 1634 to 1637 to the French Mississippi Company Bubble from 1719 to 1720, to the British "South Sea Bubble" in 1720 and the American Great Depression from 1929 to 1933, and even the Japanese housing market bubble from the late 80s to early 90s of the 20th century, as well as the American subprime mortgage crisis since the 21st century, Understanding the underlying logic of these events is difficult to achieve by relying only on knowledge and reasoning in the field of economics, which increasingly involves all aspects of the country, politics and society. Therefore, to understand the characteristics of contemporary finance, it is necessary to pay attention not only to the problems in economics and finance, but also to dabble in many fields such as political science, sociology, and history.
In November 2022, in Wuzhou, Guangxi, the Party Committee of the Agricultural Bank of China Cangwu County Branch invited Comrade Zhu Xuelan, a representative of the 20th National Congress of the Communist Party of China, to carry out special guidance for Party members of Cangwu County Branch to study Xi implement the spirit of the 20th National Congress of the Communist Party of China. (Source: Visual China).
In the modern society of economic globalization and information integration, the development of the financial industry and the stability of national politics complement each other. The behavior of the developed countries in the West itself also confirms the complex relationship between finance and politics: ** the management of financial institutions and markets through regulatory and legal frameworks to ensure the stability of the financial system;Some large financial institutions also play an important role in the country's political life, providing financing for the country's infrastructure construction, promoting economic growth, and also needing supervision and support to maintain the stability of the financial system. However, both Western countries and financial theories rarely detach themselves from the logical limitations of value allocation to analyze and understand the financial development model, and there are very few examples of the linear relationship between finance and national revitalization and finance and national rejuvenation.
To understand the concept of "financial power", it is not only necessary to re-examine the close relationship between financial development and national politics from the perspective of a country's decision-making, but also to put forward new guidelines for the research innovation and value concept improvement of contemporary finance from a theoretical perspective. Just as Marx criticized in depth in Capital in the 19th century, the model of finance serving interest groups is increasingly limited. In the face of Chinese characteristics in the five aspects of Chinese-style modernization, China needs to change its thinking on financial development on the basis of summarizing the experience and lessons of Western financial development, strengthen the service function of finance for national prosperity and national rejuvenation, and understand China's financial work from a political perspective. From this point of view, accelerating the construction of a financial power is not only an upgrade of Western financial logic, but also a theoretical expansion of the financial framework, by improving the political position of the financial industry and conducting variable analysis, in the world under the great changes unseen in a century to lay a new systematic analysis paradigm for the birth and development of "political finance".
Accelerating the construction of a financial power is a profound summary of China's financial practice for thousands of years.
The goal of accelerating the construction of a financial power not only inherits the traditional Chinese financial concept of honesty and profit, but also is a modern interpretation of the ancient financial concept and wealth concept.
The history of China's financial development can be traced back to ancient times when shellfish and other valuables were used as currency and medium of exchange. This form of exchange laid the foundation for later forms of money, with some regions using bronze as a medium of value, which gradually developed into a representative form of money. During the Spring and Autumn Period and the Warring States Period, the forms of currency began to diversify, and copper coins gradually became the mainstream form of money, and its use promoted commodity exchange and economic development. The concept of wealth has long associated finance with the state. For example, in the economic system of some early vassal states, there were many laws restricting the luxury of the rich and the annexation of land, which can be regarded as an early construction of the interaction between wealth and the public interest.
With the development and growth of social economy, China gradually established a basic financial system and system, such as the Tang and Song dynasties of private money banks to provide support and convenience for economic activities, the Ming and Qing dynasties began to flourish, promoting the development and prosperity of commerce. In the late Qing Dynasty and modern times, China has undergone many financial reforms and reforms, among which Hu Xueyan, a "red-topped businessman" in the Qing Dynasty, and a group of financiers who advocated industrial salvation in modern times, applied the Confucianism of honesty and trustworthiness as a basic principle to commercial activities, grasped the laws of political finance of the way of government and business, and made historic and important contributions to national rejuvenation. ④
From China's financial practice for thousands of years, it can be seen that the financial concept of honesty and profit following in ancient China is significantly different from the concept of Western finance serving profits with the logic of value exchange. The first financial work conference also pointed out: "It is necessary to vigorously promote the excellent traditional Chinese culture in the financial system, adhere to honesty and trustworthiness, seek profit with righteousness, be prudent and prudent, be honest and innovative, and comply with laws and regulations." The idea of seeking profit from righteousness highly summarizes the financial concept and wealth concept that has been formed in ancient China, and also shows that modern finance should serve the development of the country, serve the social morality, and serve the rejuvenation of the nation. This in itself is a fine tradition of China's commercial and economic activities since ancient times, and it needs to be inherited and carried forward.
Accelerating the construction of a financial power is the development goal of a modern financial system with Chinese characteristics.
Comparing the development process of reform and opening up over the past 40 years and the practice of other countries since the 70s of the 19th century, China is the only major economy in the world that has not experienced a large-scale financial crisis, has not fallen into a long-term depression, and has not waged wars against other countries, and has successfully achieved high-speed growth. This is also a strong demonstration of the effectiveness of China's economic and financial governance experience, which is based on local and "learning by doing". While learning from the beneficial experience of the West's economic and financial development, China has also been drawing lessons from the West's periodic financial crises. China has the confidence and confidence to unswervingly follow the path of financial development with Chinese characteristics, improve the core competitiveness of the financial industry, and strive to transform from a financial power to a financial power.
The first financial work conference pointed out: "Finance is the blood of the national economy and an important part of the country's core competitiveness. "At present, the financial industry is no longer just a means to serve the economy and allocate resources, but has become a strong support for national development and the key to participating in international competition. The stronger the financial service capacity, the smoother the economic operation will be, and the stronger the country's core competitiveness will be. More importantly, strong financial service capabilities are not only to serve the wealth growth of some fields and some people, but also to the high-quality development of all fields, all citizens and the whole country through science and technology finance, green finance, inclusive finance, pension finance and digital financial services. From this point of view, the construction of a modern financial system with Chinese characteristics that serves high-quality development is essentially to achieve Chinese-style modernization and the great rejuvenation of the Chinese nation, and accelerating the construction of a financial power is the development goal of a modern financial system with Chinese characteristics.
The connotation of accelerating the construction of a financial power is far more than the stable and healthy development of the financial industry, but also includes many factors, such as the continuous growth of financial institutions, the prevention and resolution of financial risks, the inclusiveness and efficiency of financial services, the internationalization of financial markets, the effectiveness of financial supervision, the innovative application of financial technology, and China's status as a strong country in the international financial market. The achievement of these goals in these areas depends not only on the development of the financial industry, but also on a sound legal and regulatory system, an effective regulatory system, a fair market competition environment, and further deepening international cooperation.
From a domestic point of view, accelerating the construction of a financial power means that China's financial industry needs to promote scientific and technological development, achievement transformation and high-tech innovation and development through systematic arrangements for financial instruments, financial systems, financial policies and financial services (science and technology finance), and guide more credit, Bonds and other funds flow to industries with advanced environmental governance and ecological concepts (green finance), provide appropriate and effective financial services for all social strata and groups (inclusive finance), meet the comprehensive financial needs of the general public after leaving work with age in the context of aging (pension finance), and also through information technology means such as mobile payment, Online financial services and other upgrading of traditional financial services (digital finance), so as to continuously meet the economic and social development in the 21st century and the growing financial needs of the people, and constantly create a new situation in financial work.
From an international perspective, accelerating the construction of a financial power means that China's financial industry needs to focus on promoting high-level opening-up, dare to be good at allocating global resources, and ensure national economic security while the rapid development of the financial industry. This requires China's financial industry to adhere to the principle of "bringing in" and "going out", not only to attract more foreign financial institutions and long-term capital to do business in China, improve the facilitation and efficiency of cross-border investment and financing, and steadily expand the institutional opening of the financial sector, but also to strive to promote China's capital and financial services to the world, improve the level of RMB internationalization, and better serve the "Belt and Road" We will lead global financial governance, play a more important role in the international financial market, and expand China's voice in the international financial field.
We will strive to open up the road of financial development with Chinese characteristics and accelerate the construction of a financial power.
First, adhere to the centralized and unified leadership of financial work. Finance is a very political job. Since the beginning of the revolutionary years, our party has firmly grasped the development direction of the financial industry, guided the financial industry from scratch and from weak to strong, gradually established an independent, autonomous, and unified renminbi-based system, and gradually transformed the financial system to marketization, rule of law, and internationalization, thus resisting the risks brought about by the impact of foreign financial crises and internal inflation again and again. Strengthening the centralized and unified leadership of financial work is not only a distinctive feature of China's financial development, but also a significant advantage of China's financial development. The first financial work conference pointed out: "Give full play to the role of the first financial committee and do a good job in overall planning and coordination." Give full play to the role of the financial work committee and earnestly strengthen the party building in the financial system. Give full play to the role of the financial committees of local party committees and financial working committees, and implement territorial responsibilities. "It is necessary to improve the system and mechanism of the party's leadership over financial work and ensure that financial work always follows the road of accelerating the construction of a financial power.
On July 20, 2023, 31 provincial-level supervision bureaus, 5 municipal supervision bureaus with separate planning status, and 306 prefecture-level and municipal supervision bureaus of the State Administration of Financial Supervision and Administration were listed in a unified manner. (Source: Visual China).
Second, adhere to the people-centered value orientation. The people's nature of China's financial undertakings is not only determined by our party's fundamental purpose of serving the people wholeheartedly, but also the fundamental characteristics of the modern financial system with Chinese characteristics that distinguish it from the Western financial system. The high-quality development of China's finance is based on higher coverage and a stronger sense of gain, sinking into a wider consumer group and richer transaction scenarios. Only by providing impetus for the people's yearning for a better life can finance for the people, benefit the people, benefit the people, facilitate the people, and enrich the people, and build a solid foundation for the construction of China's financial power.
Third, adhere to the financial services for the real economy as the fundamental purpose. Since the 18th National Congress of the Communist Party of China, the understanding of the nature and laws of finance has been further deepened, and serving the real economy has always been regarded as the foundation of the financial industry. This is a deep understanding of the real economy as the country's development capital, and it is also the fundamental support for building China's future development strategic advantages. China's version of the road to building a financial power does not take the road of Soviet-style planned economy and financial repression, nor does it take the road of Western-style financial idling capital arbitrage, but to build an effective system and mechanism to support the development of the real economy, reduce the cost of comprehensive social financing, comprehensively enhance the efficiency and level of financial services, actively serve the implementation of major national strategies and cultivate new development momentum, and create a better financial environment for sustainable economic development.
Fourth, we should persist in taking risk prevention and control as the eternal theme of financial work. Firmly guarding the bottom line of preventing systemic financial risks is the premise of all financial work, and it is also the fundamental guarantee for the sustainable maintenance of a financial power. To speed up the building of a financial power, we must resolutely avoid the problem of periodic financial crises such as those in the developed countries of the West that break out periodically every 10 years or so. This should not only focus on key areas and key links, and bring all financial activities into the scope of supervision in accordance with the law, but also improve the risk disposal responsibility mechanism with consistent powers and responsibilities and compatible incentives and constraints, vigorously safeguard the country's economic and financial stability and people's property security, and deeply learn the lessons of the historical outbreak of systemic financial risks and financial crises in some countries on the road to rise, resulting in the destruction of years of economic development achievements and social wealth.
Fifth, we should continue to promote financial innovation and development on the track of marketization and rule of law. In recent years, China's financial industry has been advancing at a rapid pace on the dual track of marketization and rule of law. From the perspective of marketization, the implementation of the first-class issuance registration system and the implementation of market-oriented interest rate reform have made financial products and services innovative and quality-improving. Only by continuing to carry out reforms in the direction of marketization can China's financial undertakings become even stronger. From the perspective of the rule of law, we have strengthened anti-monopoly, prevented the disorderly expansion of capital, continued to increase the intensity of cracking down on violations of laws and regulations, and made solid progress in the construction of financial rule of law. Only by continuing to govern according to law can we build a modern financial system.
Sixth, we will continue to deepen the supply-side structural reform of the financial sector. To accelerate the construction of a financial power, it is necessary to continue to increase financial support for major strategies, key areas and weak links, continue to make up for shortcomings, optimize the structure, promote the steady decline of financing costs in the real economy, continue to optimize financial services in the fields of scientific and technological innovation, small and micro enterprises, green development, and "three rural", continue to deepen the market-oriented reform of interest rates and exchange rates, and promote the financial institution system in terms of scale, structure, The regional layout is more reasonable, so as to build a modern financial system with Chinese characteristics and provide a new and strong driving force for high-quality economic development.
Seventh, we need to coordinate financial openness and security. Only by opening up the financial sector at a high level can we attract all kinds of foreign-funded financial institutions, improve the financing and investment functions and resource allocation efficiency in the global market, and improve the international competitiveness of China's financial industry, so as to better meet the needs of the people. However, financial opening-up is not a "one-size-fits-all" policy, and needs to be based on the principle of guarding the bottom line of security. The more in-depth financial opening-up is promoted, the more important it is to safeguard the country's financial interests and ensure the country's financial security in preventing cross-regional, cross-market and cross-border transmission of risks. We should grasp the relationship between openness and security, weave a tight safety net for financial opening, and give better play to the role of finance in expanding domestic demand, promoting foreign trade, and stabilizing foreign investment, so as to accelerate China's transformation from a financial power to a financial power.
Eighth, adhere to the general tone of the work of seeking progress while maintaining stability. It is not easy to be "stable" in the financial market. This shows the importance of building a financial power while "seeking progress while maintaining stability". The general tone of the work of "seeking progress while maintaining stability" is an important principle of the current governance of the country and an important method for doing a good job in financial work. Only by grasping the dialectical unity relationship between "stability" and "progress" and ensuring the stability of the economy, the market, and the people's hearts under the premise of stable direction, stable policies, and stable deployment of the financial undertaking can we create a good financial environment for high-quality economic development, and win favorable conditions and broad space for promoting high-quality financial development and building a financial power.
Chen Yulu and Yang Dong, The World is a Financial History, Beijing: Beijing United Publishing Company, 2013, pp. 1-22.
Yang Huiling, "The Logic of Financial Instability: A Marxist Interpretation", Contemporary Economic Research, No. 5, 2018, p.14.
Wang Wen and Bian Yongzu, "China's Strategic Choice of "Financial Power"", Caijing, No. 26, 2017, pp. 71-74.
Xu Mingde, "On the Historical Achievements of Hu Xueyan, a "Red-roofed Merchant" in the Qing Dynasty", Journal of Anhui Normal University (Humanities and Social Sciences Edition), No. 4, 2003, pp. 68-72.
Wang Cuirong and Wang Hongyan, "Analysis of the Values of "Seeking Profit with Righteousness and Promoting Righteousness and Benefit" in the Three Words", Journal of Harbin Institute of Technology (Social Science Edition), No. 4, 2003, pp. 13-15.