A high-level socialist market economy system is an important guarantee for Chinese-style modernization

The Decision of the Central Committee of the Communist Party of China on Further Deepening Reform and Promoting Chinese-style Modernization, which was deliberated and adopted at the Third Plenary Session of the 20th Central Committee of the Communist Party of China, emphasizes the construction of a high-level socialist market economic system, and points out that a high-level socialist market economic system is an important guarantee for Chinese-style modernization, and a high-level socialist market economic system will be built in an all-round way by 2035. The high-level socialist market economy system is the institutional mechanism for high-quality economic development, which can better play the role of the market mechanism, create a fairer and more dynamic market environment, optimize the efficiency of resource allocation and maximize the benefits, and better maintain market order, make up for market failures, smooth the national economic cycle, and stimulate the endogenous power and innovation vitality of the whole society.

Conforming to the national conditions of the country is the background color of the high-level socialist market economic system

There is no one-size-fits-all development model in the world, nor is there a one-size-fits-all development standard, although the market economy development model began in the West, but it is by no means a Western "patent". While following the general laws of economic development, the key is to see whether this development model conforms to its national conditions and has its own characteristics, whether it conforms to the development trend of the times, brings about economic development, social progress, improvement of people's livelihood, and social stability, and whether it is supported and embraced by the people and makes contributions to the cause of human progress. China has firmly established self-confidence in its path, theory, system and culture, neither followed the old road of closure and rigidity, nor the evil path of changing its banner, insisted on putting the development of the country and the nation on the basis of its own strength, and embarked on a high-level road of development of the socialist market economy with Chinese characteristics.

The socialist market economic system has shown tremendous superiority and made tremendous achievements, laying a solid foundation for the mainland's economic and social development. The 14th Five-Year Plan proposes to "comprehensively deepen reform and build a high-level socialist market economic system". In the report of the 20th National Congress of the Communist Party of China, General Secretary Xi Jinping further pointed out that building a high-level socialist market economy system should be regarded as an important measure to accelerate the construction of a new development pattern and strive to promote high-quality development. The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) once again emphasized the importance of building a high-level socialist market economy system as an important guarantee for Chinese-style modernization, which shows the importance of building a high-level socialist market economy system to China's economic and social development.

An important feature of a high-level socialist market economic system

Whether a system is "high-level" or not depends first of all on whether the system is vigorous and vigorous. The high-level socialist market economy system is a dynamic system of "effective incentives for property rights, free flow of factors, flexible price response, fair and orderly competition, and survival of the fittest".

Effective incentives for property rights are the cornerstone. Those who have constant birth have perseverance. The property rights system with clear ownership, clear rights and responsibilities, strict protection, smooth circulation and effective incentives is the key to the "high level" of the socialist market economy system. The clarity of property rights makes the allocation of resources more reasonable. The allocation of resources for the state-owned economy, which is related to national security, the lifeline of the national economy and the people's livelihood, has always focused on the key infrastructure, important industries and key areas that serve the national strategy, ensure national security, the lifeline of the national economy and the people's livelihood, support the innovation and development of forward-looking strategic industries, and improve the core competitiveness of state-owned enterprises; As an important part of the socialist market economy, the private economy has a natural affinity with the market, and the allocation of resources focuses on optimizing the development environment of private enterprises, protecting the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, streamlining administration and delegating powers, combining decentralization and regulation, and optimizing services, providing policy support and institutional guarantees for the private economy, reducing non-market intervention, and promoting the development and growth of the private economy. The smooth flow of property rights is the way to effectively motivate the property rights system. An important feature of the "high level" of the socialist market economic system is that the flow of property rights and social capital as factors is smooth, the market entry and exit mechanism is flexible, a fair, just, orderly, and open property rights trading order is gradually established, and an efficient and transparent multi-level trading platform is further improved, which has become the cornerstone of the "high level" of the socialist market economic system.

The free flow of elements is a guarantee. The socialist market economic system is composed of various types of business entities and various factors of production required in the operation of the market, and the factors of production such as labor, land, capital, management, technology, information, and data are the material basis and source of social wealth creation, and the degree of freedom and flexibility of the flow of factors directly determines the effectiveness of the market mechanism in allocating resources, thereby determining the level of its ability to stimulate social wealth creation, and is a symbol of the "high level" of the socialist market economic system. The convenience of the free flow of factors is the premise of efficient allocation of resources, and the market economic system of "letting the vitality of all labor, knowledge, technology, management, and capital burst out in a competitive manner, and allowing all the sources of creating social wealth to fully flow" inherently requires that the degree of freedom of the flow of factors of production must be "high". To achieve a "high level" of the socialist market economic system, it is necessary to focus on breaking down the barriers of administrative segmentation, carry out in-depth integration in terms of systems, mechanisms and standards, build a unified and open market that is conducive to the free flow of factors, strengthen the interconnection of infrastructure, optimize the spatial layout, promote the integrated development of sharing mechanisms such as educational resources, medical resources and cultural resources, realize the free flow of talents, capital, technology, information, data and other factors, reduce the transaction costs of factor flow, and open up all links of production, distribution, circulation and consumptionto enhance the resilience of supply chains, value chains, and industrial chains.

Flexibility in price response is a prerequisite. Prices are known as the barometer, weather vane and indicator of the market economic system, which is the most sensitive to market changes and the most effective adjustment mechanism. The socialist market economy has established a sound price adjustment mechanism, and the market plays a decisive role in the allocation of resources, fully releasing and stimulating the vitality of the market, promoting economic restructuring, and promoting high-quality economic development. The market economy has the characteristics of equality, rule of law, competition and openness, and the price determined by the market is naturally equal and competitive, and its fluctuations can reflect the changes in market supply and demand in a timely, flexible and accurate manner, transmit supply and demand information for producers and consumers, and realize the rational allocation of resources.

Fair and orderly competition is key. Ensuring fair competition among business entities is the basic requirement of the "high level" of the socialist market economic system. In the course of the development of the socialist market economy, all barriers that hinder fair competition should be removed, and a market environment in which all types of ownership entities should use resources on an equal footing in accordance with the law, participate in competition openly and fairly, and be equally protected by law. Clarify the boundaries between the government and the market, properly handle the relationship between the government's industrial policy and the market's competition laws, strengthen and improve anti-monopoly and anti-unfair competition law enforcement on the basis of giving full play to the rules of market competition, reduce the government's micro-intervention in economic activities, and supplement it with effective industrial policy guidance. Strengthen the protection of intellectual property rights, strengthen competition rules, create a first-class business environment, and connect the international and domestic product consumption markets and factor supply markets. Eliminate various artificial restrictions such as regional and ownership of factor allocation, promote the institutional mechanism of market-oriented allocation of production factors, and realize the market determination of factor prices, independent and orderly flow, and efficient and fair allocation. The source of vitality of the high-level socialist market economic system is fair and just competition, which provides every business entity with equal conditions that are not subject to any subjective and objective environmental constraints and restrictions, equal market access and free exit rules, fair tax and fee policies, fair legal environment, and equal access to economic resources. Resolutely punish disorderly competition that violates the rules of the market economy, violates the principle of good faith, and harms the interests of others, such as counterfeiting others' trademarks, stealing others' intellectual property rights, false advertising, infringing on others' trade secrets, commercial bribery, dumping of goods, forced transactions, capital monopoly, and other behaviors.

Practical innovation of the high-level socialist market economic system

As a mode of resource allocation, the market economy is the product of the evolution of human civilization and is not unique to capitalism. General Secretary Xi Jinping pointed out: "The development of a market economy under socialist conditions is a great initiative of our party. A key factor in the tremendous success of the mainland's economic development is that we have brought into play the advantages of the market economy and the superiority of the socialist system. "The practice of reform and opening up has proved that the socialist market economic system organically combines an effective market with a promising government, makes new creations in practice, and shows majestic vitality.

Value pursuit "high level". The essential difference between the socialist market economy and the capitalist market economy is not the existence of capital, private capital and private property rights, but the property rights system that determines the cornerstone of the market economy, and the value orientation and value pursuit based on this property rights system. The high-level socialist market economic system is built on the basis of the common development of the economy under various forms of ownership with public ownership as the mainstay, and in practice, it insists on taking letting the broad masses of the people live a happy life and providing equal development opportunities for all members of society as its value orientation and value pursuit, and insists that development is for the people, development depends on the people, and the fruits of development are shared by the people, so as to realize the free, equal, and all-round development of everyone. This value orientation and value pursuit are fixed in the form of constitutions and laws, making them a symbol that distinguishes them from other economic systems.

The development goal is "high level". Goals determine direction, and goals determine actions. In practice, the socialist market economy system adheres to the principle of "continuously emancipating and developing the productive forces" as its own development goal, providing strong support for building China into a great modern socialist country in an all-round way, realizing the second centenary goal, and comprehensively promoting the great rejuvenation of the Chinese nation with Chinese-style modernization. The determination of this lofty goal has become an important feature of the high level of the socialist market economic system. In order to achieve lofty goals in a high-level socialist market economic system, the most important thing is to closely integrate an effective market with a promising government, not only to give play to the decisive role of the market economy in the allocation of resources, but also to give full play to the enthusiasm and creativity of the masses of the people, and to give better play to the role of the government, to make the cake bigger and divide it well, to overcome market failures and avoid government failures, and to maximize the fundamental interests of all members of society.

The means of regulation and control are "at a high level". In practice, the socialist market economic system fully relies on the institutional advantages of the new national system and the ability to concentrate forces on major affairs, bases itself on the new stage of development, implements the new development concept, builds a new development pattern, and seeks the best combination of the market mechanism and government regulation and control, so that the invisible hand of the market and the visible hand of the government can be organically combined, and it can be "lived" and "managed." Effective market is to give full play to the decisive role of the market in the allocation of resources, realize the optimal utilization of various factors, give full play to the value-added functions and positive effects of various factors, and make the cake bigger and stronger; A promising government is to play the role of the government in correcting market failures, prevent the disorderly expansion and excessive abuse of capital, achieve green economic and social transformation and development through effective public policies, promote quality change, efficiency change, and power change, cultivate new kinetic energy, extend the industrial chain, enhance the innovation chain, stabilize the supply chain, and smooth the logistics chain.

The degree of openness is "high-level". Openness is a clear sign of Chinese modernization. In practice, the socialist market economy system relies on the advantages of the mainland's super-large-scale market, always maintains a high level of opening-up, builds a new system of a higher-level open economy, has a high degree of inclusiveness and cooperation, takes the road of openness, inclusiveness and win-win cooperation, and opposes the zero-sum game and trade protectionism of building walls and obstacles, "decoupling and breaking chains". In the process of building a high-level socialist market economic system, the utilization of foreign capital has continued to grow, the pace of enterprises "going global" has been solid, and the level of trade facilitation has been greatly improved. China has played a key role in global governance, improving the level of opening-up of various regions in China, expanding the scope of opening-up, promoting institutional opening-up, building a broad circle of friends, and exploring new ways to promote common development.

The circulation system is "at a high level". The high-level socialist market economic system requires the establishment of a modern circulation industry that integrates various factors of production such as land, capital, information, talents, and data, and builds a system linked by the logistics network, knowledge network, financial network, data network, and talent network, and then breaks through the bottlenecks and blockages of the industrial chain, supply chain, and value chain, and builds a high-level modern circulation market with rich types, unified, open, fair and orderly, and complete supporting facilities, so as to provide a good market environment for the free and efficient flow of commodities and factors. Build a global, safe, reliable, efficient and smooth modern circulation network, give full play to the role of market links and industrial organization of the modern circulation system, and provide a basic network for the cross-regional and large-scale circulation of commodities and factors. Cultivate high-quality and innovative modern circulation enterprises, and create an internationally competitive business entity. Construct a new circulation ecology of resource sharing and coordinated development, guide the standardized and orderly development of the modern circulation system with a perfect circulation rules and standard system, and promote the equal exchange and two-way flow of urban and rural elements.

(The author is dean of the Institute of Government Management, Beijing Normal University)