Editor’s Note: Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with the Supreme Leader as the core has made a major judgment that economic development has entered a new normal, formed a policy framework with the new development concept as the guide and the supply-side structural reform as the main line, implemented the general tone of striving for progress in stability, and led the sustained and healthy development of China’s economy. A series of important expositions published by the Supreme Leader comrades around the socialist economic construction have lofty ideas, rich connotations and profound thoughts, and comprehensively answered the major questions of how to look at and do China’s economic development. They have firmly established and implemented the new development concept, adapted to the new normal of economic development, promoted structural reforms on the supply side, promoted stable and healthy economic development and social harmony and stability, and achieved the goal of "two hundred years" and the Chinese nation.
In order to help the broad masses of cadres and masses to learn, understand and master the important expositions of the Supreme Leader on socialist economic construction, the the Central Committee of the Communist Party of China Literature Research Office edited the Excerpts of the Supreme Leader’s Expositions on Socialist Economic Construction. shouldThe contents of the book are extracted from more than 120 important documents such as speeches, reports and instructions of the Supreme Leader from November 15, 2012 to March 12, 2017. It is divided into 10 topics, with a total of 494 paragraphs. Many of them are published for the first time. The bookAuthorize People’s Daily Online to serialize exclusively. Please contact the publishing unit if necessary.
All walks of life at home and abroad are highly concerned about our reform. We must strengthen our confidence, build consensus, make overall plans and make concerted efforts, adhere to the reform direction of the socialist market economy, enhance the systematicness, integrity and synergy of the reform, and promote the next step of reform with greater political courage and wisdom.
-Speech at the Central Economic Work Conference (December 15, 2012)
On making the market play a decisive role in resource allocation and giving full play to the role of the government. This is a major theoretical point decided by this plenary session. This is because the economic system reform is still the focus of comprehensive deepening reform, and the core issue of economic system reform is still to properly handle the relationship between the government and the market.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 498.
After more than 20 years of practice, China’s socialist market economic system has been initially established, but there are still many problems, mainly the irregular market order and the widespread phenomenon of seeking economic benefits by improper means; Factor markets’s development lags behind, with idle factors and a large number of effective demands not being met; Market rules are not unified, and departmental protectionism and local protectionism exist in large numbers; Insufficient market competition hinders the survival of the fittest and structural adjustment, and so on. If these problems are not solved well, it is difficult to form a perfect socialist market economic system.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 498.
To further handle the relationship between the government and the market is actually to handle the question of whether the market plays a decisive role or the government plays a decisive role in resource allocation. Economic development is to improve the allocation efficiency of resources, especially scarce resources, to produce as many products as possible with as few resources as possible, and to obtain as great benefits as possible. Both theory and practice have proved that market allocation of resources is the most efficient form. The market determines the allocation of resources, which is the general law of market economy, and the market economy is essentially an economy in which the market determines the allocation of resources. To improve the socialist market economic system, we must follow this law and focus on solving the problems of imperfect market system, excessive government intervention and inadequate supervision. The orientation of "making the market play a decisive role in resource allocation" is conducive to establishing a correct concept about the relationship between the government and the market in the whole party and society, to transforming the mode of economic development, to transforming government functions, and to curbing negative corruption.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 499.
China is implementing a socialist market economic system, and we still have to give full play to the superiority of our socialist system and the positive role of the Party and the government. The market plays a decisive role in the allocation of resources, not all.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 500.
To develop the socialist market economy, we should play the role of both the market and the government, but the functions of the market and the government are different. The decision of the plenary session puts forward clear requirements for giving full play to the role of the government, emphasizing scientific macro-control and effective government governance, which are the inherent requirements for giving full play to the advantages of the socialist market economic system. The plenary session decided to make arrangements for improving the macro-control system, fully and correctly performing government functions, and optimizing the government organizational structure, stressing that the government’s responsibilities and functions are mainly to maintain macroeconomic stability, strengthen and optimize public services, ensure fair competition, strengthen market supervision, maintain market order, promote sustainable development, promote common prosperity, and make up for market failures.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 500.
The plenary session decided to adhere to and develop the relevant expositions since the 15th National Congress of the Communist Party of China, proposed to actively develop the mixed-ownership economy, and emphasized that the mixed-ownership economy with cross-shareholding and mutual integration of state-owned capital, collective capital and non-public capital is an important realization form of the basic economic system, which is conducive to amplifying the function of state-owned capital, maintaining and increasing its value, and improving its competitiveness. This is an effective way and an inevitable choice to adhere to the dominant position of public ownership and enhance the vitality, control and influence of the state-owned economy under the new situation.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents since the 18th National Congress (I), Central Literature Publishing House, 2014, pp. 500-501.
State-owned enterprises are an important force to promote national modernization and safeguard the common interests of the people. After years of reform, state-owned enterprises have generally integrated with the market economy. At the same time, state-owned enterprises have also accumulated some problems and disadvantages, and need to further promote reform. The plenary session decided to put forward a series of targeted reform measures, including increasing state-owned capital investment in public welfare enterprises; In the natural monopoly industries where state-owned capital continues to hold shares, the reform with separation of government and enterprise, separation of government and capital, franchising and government supervision as the main contents will be implemented, and the network transportation will be separated and competitive business will be liberalized according to the characteristics of different industries; Improve the corporate governance structure with coordinated operation and effective checks and balances; Establish a professional manager system to give full play to the role of entrepreneurs; Establish a long-term incentive and restraint mechanism to strengthen the accountability of state-owned enterprises’ investment; Explore and promote the disclosure of major information such as the financial budget of state-owned enterprises; State-owned enterprises should reasonably increase the proportion of market-oriented hiring, reasonably determine and strictly regulate the salary level, job treatment, job consumption and business consumption of managers of state-owned enterprises. These measures will promote state-owned enterprises to improve the modern enterprise system, improve operational efficiency, assume social responsibilities reasonably and play a better role.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, p. 501.
To adhere to and improve the basic economic system, we must adhere to the "two unwavering". The plenary session decided to propose reform measures to encourage, support and guide the development of the non-public economy and stimulate the vitality and creativity of the non-public economy from multiple levels. In terms of functional orientation, it is clear that both public ownership economy and non-public ownership economy are important components of the socialist market economy and are important foundations for China’s economic and social development; In the protection of property rights, it is clearly stated that the property rights of public ownership economy are inviolable, and the property rights of non-public ownership economy are equally inviolable; In terms of policy treatment, it emphasizes the equality of rights, opportunities and rules and implements a unified market access system; Encourage non-public enterprises to participate in the reform of state-owned enterprises, encourage the development of mixed-ownership enterprises controlled by non-public capital, and encourage qualified private enterprises to establish a modern enterprise system. This will promote the healthy development of the non-public economy.
-Explanation on the Central Committee of the Communist Party of China’s Decision on Comprehensively Deepening Reform (November 9, 2013), Selected Important Documents Since the 18th National Congress (I), Central Literature Publishing House, 2014, pp. 501-502.
To adhere to the direction of socialist market economy reform, the core issue is to properly handle the relationship between the government and the market, so that the market can play a decisive role in resource allocation and better play the role of the government. This is another major advance of our party in theory and practice.
-"Practically Unify Thought with the Spirit of the Third Plenary Session of the 18th CPC Central Committee" (November 12, 2013), Selected Important Documents Since the 18th CPC Central Committee (I), Central Literature Publishing House, 2014, p. 551.
Adhering to the direction of socialist market economy reform is not only the basic follow-up of economic system reform, but also an important support for comprehensively deepening reform. Making the market play a decisive role in resource allocation mainly involves economic system reform, but it will inevitably affect politics, culture, society, ecological civilization and party building and other fields. It is necessary to make all aspects of system reform advance in the direction of establishing a perfect socialist market economic system, and at the same time make all aspects of their own related links better adapt to the new requirements put forward by the development of socialist market economy.
-"Practically Unify Thought with the Spirit of the Third Plenary Session of the 18th CPC Central Committee" (November 12, 2013), Selected Important Documents Since the 18th CPC Central Committee (I), Central Literature Publishing House, 2014, p. 552.
The socialist market economic system established after 35 years of reform has been able to play the role of economic stabilizer to a considerable extent. Some things don’t need the government to do, and the market mechanism will automatically adjust. Some things don’t need to be done by the central government, and local governments will take the initiative to do the work. We insist on stable macro policies, flexible micro policies, simple administration and decentralization, give better play to the role of the market, and better reflect the division of labor between the central and local governments. We have stepped up efforts to transform the government’s job capacity, shifted the focus of our work to creating a fair competitive market environment, protecting the ecological environment, supporting innovation, etc., and enhanced the momentum and vitality of economic development.
-Speech at the Central Economic Work Conference (December 10, 2013)
Generally speaking, the market plays a decisive role. We should not blindly and absolutely say that the market plays a decisive role, but make the market play a decisive role in the allocation of resources and give full play to the role of the government. In some areas, such as national defense construction, the government plays a decisive role. Some strategic energy resources should be firmly controlled by the government, but they can be done through market mechanisms.
-Speech at the Fifth Meeting of the Central Financial and Economic Leading Group (March 14, 2014)
It is not only a major theoretical proposition, but also a major practical proposition to make the market play a decisive role in resource allocation and better play the role of the government. It is of great significance to scientifically understand this proposition and accurately grasp its connotation for comprehensively deepening the reform and promoting the healthy and orderly development of the socialist market economy. On the issue of market role and government role, we should talk about dialectics and two-point theory, make good use of both "invisible hand" and "visible hand", and strive to form a pattern in which market role and government role are organically unified, complementary, coordinated and promoted, so as to promote sustained and healthy economic and social development.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
At the Third Plenary Session of the 18th CPC Central Committee, it was pointed out that the reform of the economic system is the key to comprehensively deepen the reform, and the core issue is to properly handle the relationship between the government and the market, so that the market can play a decisive role in the allocation of resources and better play the role of the government. Putting forward that the market plays a decisive role in the allocation of resources is a new breakthrough in our Party’s understanding of the law of Socialism with Chinese characteristics’s construction, a new achievement of Marxism in China, and a sign that the development of socialist market economy has entered a new stage.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
Accurate positioning and grasping make the market play a decisive role in resource allocation and better play the role of the government, and we must correctly understand the relationship between the role of the market and the role of the government. The relationship between government and market is the core issue of China’s economic system reform. At the Third Plenary Session of the 18th CPC Central Committee, the market played a fundamental role in the allocation of resources and changed it to play a decisive role. Although there is only a difference of two words, it is a brand-new orientation for the role of the market. The two orientations of "decisive role" and "fundamental role" are connected, inherited and developed. Making the market play a decisive role in resource allocation and giving better play to the role of the government are organically unified, not mutually negative, and they cannot be separated and opposed. The decisive role of the market in resource allocation can neither be used to replace or even deny the government’s role, nor can it be used to replace or even deny the market’s decisive role in resource allocation.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
Putting forward that the market plays a decisive role in resource allocation is actually implementing the problem orientation. After more than 20 years of practice, China’s socialist market economic system has been developing continuously, but there are still many problems, and there are still many drawbacks that constrain the vitality of market players and hinder the full play of the market and the law of value. If these problems are not solved well, it is difficult to form a perfect socialist market economic system, and it is also difficult to change the development mode and adjust the economic structure. We must adhere to the direction of socialist market economy reform, promote market-oriented reform in breadth and depth, reduce the direct allocation of resources by the government, reduce the direct intervention of the government in micro-economic activities, accelerate the construction of a unified, open and orderly market system, establish fair, open and transparent market rules, hand over economic activities that can be effectively regulated by the market mechanism to the market, and hand over things that the government should not be in charge of, so that the market can fully play its role in all areas that can play its role, and promote the allocation of resources to maximize benefits and optimize efficiency.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
Scientific macro-control and effective government governance are the inherent requirements for giving full play to the advantages of the socialist market economic system. To give full play to the role of government, it is necessary to effectively transform government functions, deepen the reform of administrative system, innovate administrative management methods, improve the macro-control system, strengthen the supervision of market activities, strengthen and optimize public services, promote social fairness, justice and social stability, and promote common prosperity. Governments at all levels must strictly administer according to law, earnestly perform their duties, properly manage the affairs under their control, fully release the power, and resolutely overcome the dislocation, offside and absence of government functions.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
It is an important feature of China’s socialist market economic system to uphold the leadership of the Party and give full play to the leading core role of the Party in commanding the overall situation and coordinating all parties. Over the past 30 years of reform and opening up, China’s economic and social development has achieved great achievements rarely seen in the world, and the living standards of our people have been greatly improved, which are inseparable from our firm adherence to the party’s leadership and giving full play to the role of party organizations at all levels and all party member. In our country, the strong leadership of the party is the fundamental guarantee for the government to play its role. In the process of comprehensively deepening the reform, we should uphold and develop our political advantages, lead and promote the reform with our political advantages, mobilize the enthusiasm of all parties, and promote the continuous improvement of the socialist market economic system and the better development of the socialist market economy.
-Speech at the 15th collective study in the 18th the Political Bureau of the Central Committee (May 26th, 2014), People’s Daily, May 28th, 2014.
When we deepen reform in an all-round way, we must stimulate the vitality contained in the market. Market vitality comes from people, especially entrepreneurs, and from entrepreneurship. To stimulate the vitality of the market, it is necessary to put the right to release in place, create a good environment, and formulate rules to make entrepreneurs useful. We emphasize the need to give full play to the role of the government, shift more from managers to service providers, serve enterprises and promote economic and social development.
-"Seeking Sustainable Development and Building Asia-Pacific Dreams Together" (November 9, 2014), People’s Daily, November 10, 2014.
The organic combination of the basic socialist system and the market economy, and the common development of the public-owned economy and the non-public-owned economy are great initiatives of our party to promote the liberation and development of social productive forces. At present, the number of non-public economic organizations has accounted for about 90% of the market players, and the GDP created has exceeded 60%. Facts have shown that as long as the Communist Party of China (CPC)’s leadership is adhered to, as long as public ownership is the mainstay and diversified ownership economies develop together, the superiority of the socialist system will not be weakened, but will continue to increase, and the foundation of our party’s governance will not be shaken, but will be more stable.
-"Deeply Understanding the Great Significance of Doing a Good Job in United Front Work under the New Situation" (May 18, 2015), Selected Important Documents since the 18th National Congress (middle), Central Literature Publishing House, 2016, p. 559.
It is necessary to deepen the reform of the economic system around making the market play a decisive role in resource allocation and giving full play to the role of the government, accelerate the formation of institutional mechanisms and development methods that lead the new normal of economic development, accelerate the reform that is conducive to innovative development, coordinated development, green development, open development and shared development, accelerate the reform that is conducive to improving the efficiency of resource allocation and improving the quality and efficiency of development, accelerate the reform that is conducive to fully mobilizing the enthusiasm of all parties, and accelerate the reform that is conducive to the modernization of the national governance system and governance capacity.
—— "Leading development with new development concepts and winning great victory in the decisive stage of building a well-off society in an all-round way" (October 29, 2015), Selected Important Documents since the 18th National Congress (middle), Central Literature Publishing House, 2016, pp. 835-836.
China’s basic economic system is an important pillar of the Socialism with Chinese characteristics system and the foundation of the socialist market economic system. The dominant position of public ownership cannot be shaken, and the leading role of the state-owned economy cannot be shaken. This is an institutional guarantee to ensure that the people of all ethnic groups in China share the fruits of development, and it is also an important guarantee to consolidate the party’s ruling position and adhere to China’s socialist system.
-"Speech at the 28th Collective Study in the 18th the Political Bureau of the Central Committee" (November 23, 2015)
Developing market economy under socialist conditions is a great pioneering work of our party. A key factor for the great success of China’s economic development is that we have brought into play the advantages of both the market economy and the socialist system. We are developing the market economy on the premise of the Communist Party of China (CPC)’s leadership and the socialist system, and we must never forget the attribute "socialism". The reason why it is a socialist market economy is to uphold the superiority of our system and effectively guard against the disadvantages of the capitalist market economy. We must adhere to dialectics and two-point theory, continue to work hard on the combination of the basic socialist system and the market economy, give full play to the advantages of both aspects, and strive to solve this worldwide economic problem in practice.
-"Speech at the 28th Collective Study in the 18th the Political Bureau of the Central Committee" (November 23, 2015)
Accelerate the reform of the fiscal and taxation system. It is necessary to grasp key issues such as dividing the central and local powers and expenditure responsibilities, improving the local tax system, enhancing local development capabilities, and reducing the burden on enterprises, and accelerate the reform of the fiscal and taxation system. It is necessary to promptly formulate a plan for dividing the central and local powers and expenditure responsibilities, moderately strengthen the central powers and expenditure responsibilities, hand over some affairs that are suitable for local governments to local governments, and reduce matters that the central and local responsibilities overlap and jointly manage. According to the principle of tax sharing, the taxes suitable for local income should be allocated to local governments, and the tax rate can be appropriately decentralized to local governments. It is necessary to speed up the introduction of environmental protection tax and promote the reform of resource tax.
-"Doing a Good Job in Current Economic Work around Implementing the Spirit of the Fifth Plenary Session of the 18th CPC Central Committee" (December 18, 2015)
It is necessary to form a stock market with complete financing function, solid basic system, effective market supervision and full protection of investors’ legitimate rights and interests as soon as possible. It is necessary to study and put forward the reform plan of the financial supervision system, focus on coordinating the supervision system of important financial institutions, financial holding companies and important financial infrastructure, and strengthen comprehensive supervision and functional supervision. There are different approaches to what kind of financial supervision system to implement in the world. We should proceed from China’s national conditions, especially adhere to the problem orientation, determine our thinking quickly, and don’t argue and delay for a long time. It is necessary to accelerate the reform of the banking system, deepen the reform of state-owned commercial banks, optimize the shareholding structure and improve corporate governance. It is necessary to expand private capital into the banking industry, develop a number of commercial banks controlled by private capital, lower the entry threshold, and realize the normalization of the establishment of private banks. It is necessary to accelerate the development of green finance and set up a green development fund. It is necessary to take advantage of the opportunity of RMB entering the basket, accelerate the reform and opening up of the financial industry, and steadily promote RMB to become an international reserve currency.
-"Doing a Good Job in Current Economic Work around Implementing the Spirit of the Fifth Plenary Session of the 18th CPC Central Committee" (December 18, 2015)
Making the market play a decisive role in resource allocation is the main line of deepening economic system reform. The Third Plenary Session of the 18th CPC Central Committee put forward that the market should play a decisive role in the allocation of resources and give full play to the role of the government. I talked about both aspects, but I made it clear in the explanation of the plenary session that the focus of the reform is to solve the problems of imperfect market system, excessive government intervention and inadequate supervision. To give full play to the role of the government is not to give full play to the role of the government, but to manage those things that the market can’t or can’t manage well on the premise of ensuring that the market plays a decisive role.
-"Doing a Good Job in Current Economic Work around Implementing the Spirit of the Fifth Plenary Session of the 18th CPC Central Committee" (December 18, 2015)
Our party’s view on adhering to the basic economic system is clear and consistent, and it is constantly deepening and has never wavered. The Communist Party of China (CPC) and party constitution have stated this point, which will not change and cannot be changed.
I reiterate here that the position and role of the non-public sector of the economy in China’s economic and social development have not changed. Our principles and policies of unswervingly encouraging, supporting and guiding the development of the non-public sector of the economy have not changed. Our principles and policies of creating a good environment and providing more opportunities for the development of the non-public sector of the economy have not changed.
-"Unswervingly adhere to China’s basic economic system and promote the healthy development of various ownership economies" (March 4, 2016), People’s Daily, March 9, 2016.
Our emphasis on consolidating and developing the public sector of the economy is not antagonistic to encouraging, supporting and guiding the development of the non-public sector of the economy, but organically unified. Our country is so big and has such a large population, and it is in the primary stage of socialism and will be in it for a long time. To promote economic and social development, it is necessary for all parties in Qi Xin to work together, and everyone will gather firewood. Public-owned economy and non-public-owned economy should complement each other, rather than mutually exclusive and offset each other.
-"Unswervingly adhere to China’s basic economic system and promote the healthy development of various ownership economies" (March 4, 2016), People’s Daily, March 9, 2016.
All localities and departments should proceed from reality, refine and quantify policies and measures, formulate relevant supporting measures, and promote the implementation of various policies, so that private enterprises can truly enhance their sense of gain from policies.
At present, we should focus on solving the following problems. First, efforts should be made to solve the financing difficulties of small and medium-sized enterprises, improve the financial system, and provide reliable, efficient and convenient services for financing of small and medium-sized enterprises. Second, efforts should be made to liberalize market access. All industries and fields that are not explicitly prohibited by laws and regulations should be encouraged to enter, and all fields that the Chinese government has opened to foreign investment or promised to open should be opened to domestic private capital. Third, efforts should be made to speed up the construction of the public service system, support the establishment of a common technical service platform for private enterprises, actively develop the technology market, and provide technical support and professional services for independent innovation of private enterprises. Fourth, efforts should be made to guide private enterprises to make use of market portfolio private capital, carry out cross-regional and cross-industry mergers and acquisitions, and cultivate a number of large enterprise groups with outstanding characteristics and strong market competitiveness. Fifth, it is necessary to further clean up and streamline the administrative examination and approval items and enterprise-related fees involving private investment management, standardize the behavior of intermediate links and intermediary organizations, reduce the burden on enterprises and reduce their costs.
-"Unswervingly adhere to China’s basic economic system and promote the healthy development of various ownership economies" (March 4, 2016), People’s Daily, March 9, 2016.
To deepen the reform of economic system, the core is to properly handle the relationship between the government and the market, so that the market can play a decisive role in the allocation of resources and better play the role of the government. This requires dialectics and two-point theory, and both "invisible hand" and "visible hand" should be used well. The key is to speed up the transformation of government functions. The power given to the market and society must be fully put in place, and the affairs managed by the government must be well managed and properly managed, and the phenomenon of dislocation, offside and absence of government functions must be resolutely reversed. It is necessary to deepen the reform of the administrative examination and approval system, promote decentralization, deepen the management of power list and responsibility list, and at the same time strengthen supervision after the event.
-"Speech at the Deliberation of the Shanghai Delegation to the Fourth Session of the 12th National People’s Congress" (March 5, 2016)
State-owned enterprises must not only do well, but also do well. Relevant departments in all regions and the vast number of state-owned enterprises should follow the decision-making arrangements of the CPC Central Committee on promoting the reform and development of state-owned enterprises, adapt to the development and changes of the domestic and international economic situation, adhere to the policy of maintaining and increasing the value of state-owned assets, improving the competitiveness of the state-owned economy and amplifying the functions of state-owned capital, promote the deepening reform of state-owned enterprises, improve their management level, strengthen the supervision of state-owned assets, and unswervingly make state-owned enterprises stronger, better and bigger.
-Speech at the National Conference on Party Building in State-owned Enterprises (October 10, 2016)
The role of the market and the role of the government are complementary, mutually reinforcing and complementary. We must persist in making the market play a decisive role in resource allocation, improve the market mechanism, break down industry monopoly, entry barriers and local protection, enhance enterprises’ ability to respond and adjust to changes in market demand, and improve the efficiency and competitiveness of enterprise resource allocation. Giving full play to the role of the government is not simply issuing administrative orders. On the basis of respecting the laws of the market, we should stimulate market vitality with reform, guide market expectations with policies, clarify investment direction with planning, and regulate market behavior with the rule of law.
-Speech at the 38th collective study in the 18th the Political Bureau of the Central Committee (January 22, 2017), People’s Daily, January 23, 2017.
