Unleash China s economic growth potential to the greatest extent

Mondo Finance Updated on 2024-03-05

Reform and opening up is the endogenous driving force of China's economic growth and a key measure of economic development. The 2023 ** Economic Work Conference emphasized that it is necessary to promote reform and opening up with greater determination and intensity, promote in-depth reform and high-level opening up as a whole, give full play to the decisive role of the market in the allocation of resources, and better play the leading role, so as to continuously liberate and develop social productive forces and stimulate and enhance social vitality. Standing at a new historical starting point, we should make better use of this dynamic mechanism, continuously improve total factor productivity, and unleash the structural potential of China's economic growth to the greatest extent.

In view of the current problems of insufficient effective demand, overcapacity in some industries, weak social expectations, and still many hidden risks in China's economy, it is necessary to continue to deepen the supply-side structural reform and strive to expand effective demand.

In the medium and long term, efforts should be made to do a good job in the following six aspects:

First, we need to deepen reform in an all-round way and further release the dividends of reform. It is necessary to promote the growth of total factor productivity by creating huge reform dividends. The first is to deepen the reform of the system for the allocation of factors of production. Actively promote market-oriented reforms of factors such as land, labor, capital, technology, and data, accelerate the improvement of basic systems in areas such as market access, property rights protection and transactions, data and information, and social credit, and promote the development and utilization of digital resources. Break down local protection and market segmentation, achieve the goal of relying on the market for independent pricing and orderly flow of factors, and fair competition among all types of business entities, and accelerate the formation of a unified national market. The second is to deepen the reform of the income distribution system. We should further increase the proportion of residents' income in the distribution of national income and the proportion of workers' remuneration in the primary distribution, increase the proportion of middle-income groups in the population, continuously increase domestic consumption capacity, and accelerate the formation of the world's largest consumer market. The third is to deepen the reform of the investment and financing system. On the basis of clarifying the boundaries between investment and the market, we should explore an effective way to combine investment with social investment, and give full play to the leverage role of investment in private investment. Fourth, accelerate the integrated development of urban and rural society. Gradually break down the dual barriers, promote the national overall planning of social insurance, and continue to meet the needs of residents for education, medical treatment, elderly care, child care and so on. In the integrated development of urban and rural areas, we should give full play to the advantages of the super-large-scale market, unleash the development potential, and narrow the gap between the rich and the poor.

Second, we need to promote institutional opening-up and deeply participate in the global division of labor and cooperation. We will further promote a new round of opening-up, especially institutional-based opening-up, and continue to optimize the business environment. The first is to strengthen the alignment with global high-level institutional arrangements in terms of rules, regulations, management and standards, and actively promote accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). The second is to truly build a first-class business environment that is market-oriented, law-based and internationalized. The third is to take the steady expansion of the export of intermediate goods as the starting point, strengthen the industrial division of labor and cooperation, promote the formation of an efficient transnational production network, and cultivate China's multinational enterprises.

Third, we should promote the adjustment of the distribution of productive forces and promote the efficient agglomeration of resource elements. The first is to vigorously promote a new type of urbanization with people at the core. Continue to deepen the reform of the household registration system. Accelerate the shortcomings of basic public services such as housing, education, medical care, and social security for migrant workers and other migrant populations, ensure basic public services for migrant workers in urban areas, and strengthen employment training. The second is to speed up the construction of urban agglomerations and metropolitan areas. Strengthen the capacity building of industrial development and urban management that are compatible with the improvement of population density and agglomeration effect, promote the free flow of factors and resource agglomeration, and create conditions for large-scale innovation and development. The third is to promote the construction of a regional integrated market. Promote industrial gradient transfer and regional integration and interaction, and promote the appropriate separation of economic zones and administrative regions in areas with good conditions.

Fourth, deepen the reform of the scientific and technological system and enhance the ability of innovation-driven development. Keep up with the pace of the new round of global scientific and technological revolution and industrial transformation, seize the opportunities of the times, release the new momentum of science and technology to boost economic growth, and accelerate the formation of new quality productivity. The first is to establish a sound investment mechanism for basic research, encourage free exploration of basic research operation mechanism, and support the innovation incentive mechanism for basic research, so as to enhance the original innovation ability. The second is to build an integrated promotion mechanism of "education-technology-talent" and an integrated mechanism of "original innovation-integrated innovation-open innovation", smooth the circulation mechanism of "science and technology-industry-finance", and create a good innovation ecology. The third is to promote industrial innovation with scientific and technological innovation, accelerate the adjustment of industrial structure and the transformation of old and new kinetic energy, cultivate strategic emerging industries and future industries, and seize the strategic commanding heights. Fourth, strengthen R&D investment with enterprises as the main body, and accelerate the transformation of scientific and technological achievements into real productivity. Fifth, we should accelerate the construction of an international basic research cooperation platform and continuously strengthen international scientific and technological cooperation.

Fifth, we need to increase investment in human capital and build a solid foundation for a talented country. First, we should continue to reduce the cost of childbirth, parenting, and education, accelerate the introduction of systematic support policies to encourage childbirth, and strive to increase the birth rate. The second is to continue to cultivate diversified and multi-level human resources to meet the needs of economic and social development, promote multidisciplinary cross-integration, strengthen the connection between supply and demand, and extend the talent training chain to the front line of the industry, so that learning can be useful. The third is to increase vocational skills training, promote the construction of high-quality industrial workers, and focus on relying on major talent projects to optimize the cultivation of innovative talents. Fourth, we should adopt diversified ways to introduce intelligence and accelerate the construction of a global talent highland. Fifth, improve the retirement system, encourage delayed retirement, vigorously develop the silver economy, and continuously release the quality dividend of the middle-aged and elderly population.

Sixth, we need to better coordinate development and security, and effectively prevent and defuse systemic risks. Continuously improve the resilience of the economic system, enhance the ability to respond to systemic risks, and prevent the modernization process from being delayed or interrupted by systemic risks. First, it is necessary to properly handle the relationship between local short-term bonds and long-term development. According to the deployment of the ** Economic Work Conference, the heavily indebted province should seek development while reducing debt, and other regions should be as fast as possible in high-quality development, so as to make greater contributions to stabilizing the national economy. The second is to speed up the transformation of urban villages, the construction of public infrastructure for both ordinary and emergency purposes, and the construction of affordable housing. Promote the construction of a new model of real estate development, improve the basic system of real estate, and improve the long-term mechanism. Third, it is necessary to comprehensively strengthen supervision, strict financial supervision, strengthen financial and accounting supervision, and strictly enforce financial and economic discipline. All financial activities are subject to supervision in accordance with the law. Fourth, adhere to the concept of systems. Find ways and means to promote high-quality development and high-level security, and properly resolve risks in high-quality development.

In short, we must concentrate on doing our own things well, unremittingly promote high-quality development, continuously enhance China's economic strength, scientific and technological strength, and comprehensive national strength, and make all kinds of bizarre theories about China's decline self-defeating through brilliant achievements and ironclad facts. (Zhong Caiwen).

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