CPC rolls out grand plan to deepen reforms, vows free market
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E-mail Xinhua, November 13, 2013
The 18th Central Committee of the Communist Party of China (CPC) on Tuesday approved a decision on "major issues concerning comprehensively deepening reforms" at the close of its four-day meeting.
Entrusted by the Political Bureau of the CPC Central Committee, Xi Jinping, general secretary of the CPC Central Committee, delivered a work report to the Third Plenary Session of the 18th CPC Central Committee, which was held from Nov. 9 to 12 in Beijing.
The objective of the approved reforms is to improve and develop socialism with Chinese characteristics and push on with modernization of the country's governing system and capabilities, according to a communique issued after the session.
China must build on the reality that it remains in the primary stage of socialism and will long remain so while pursuing comprehensive, deeper reform. The country must stick to the strategic judgement that development is the key to solving China's problems, the communique said.
It is important to adhere to the leadership of the CPC, it said.
Economic reform is key and the core solution is the proper relationship between the government and the market, leaving the market to play the decisive role in allocation of resources and the government to play a better role, it said.
Decisive results must be achieved in key sectors, and a well-developed, scientific, procedure-based and effective framework must be in place by 2020 to ensure institutions in all sectors have matured, according to the communique.
The CPC will set up a central leading team for "comprehensively deepening reform." It will be in charge of designing reform, arranging and coordinating reform, pushing forward reform and supervising the implementation of plans.
"The establishment of the team is what pro-reform supporters want to hear," said Chi Fulin, head of the China Institute for Reform and Development, a think tank based in south China's Hainan Province.
In a new era, there are various aspects of comprehensively deepening reform. An important one is to break the entrenched vested interests and this is impossible without top-level design and efforts, a duty which will be fulfilled by the team, Chi said.
The country will also establish a state security committee, improving systems and strategies to ensure national security, according to the communique, which called for the innovation of systems to effectively prevent and end social disputes and improve public security.
Li Wei, a counter-terrorism expert with the China Institute of Contemporary International Relations, said the committee is expected to design a top-level strategy which will improve the efficiency of settling severe emergencies that concerns state security and interests.
"DECISIVE ROLE" OF MARKET
China will stick to the dominant role of public ownership, playing the leading role of the state-owned economy, while encouraging, supporting and guiding the non-public sector, enhancing its vitality and creativity, the communique said.
A united and open market system with orderly competition will be built so that the market will play a "decisive" role in allocating resources, according to the communique.
It is a significant breakthrough to elevate the status of the market from the "basic role" to a "decisive role" in allocating resources, said Chi. "It means the future economy will focus on the leading role of the market rather than the government."
For many years after 1949, the idea of market had been a taboo associated with capitalism. Even after the reform and opening up in 1978, the country had struggled to define the market and some dogmatists still questioned whether socialism could accommodate the market economy.
Prof. Xie Chuntao, with the Party School of the CPC Central Committee, told Xinhua that the definition of market in Tuesday's document showed the Party's in-depth understanding of what the market economy is and what role the government should play.
"The government did a good job but sometimes just intervened too much, which led to high administrative costs, low efficiency and corruption," he said. "I think the leadership understands what the problems are."
To let the market decide the allocation of resources, the primary task is to build an open and unified market with orderly competition, according to the document.
Land in cities and the countryside, which can be used for construction, will be pooled together in one market, it said.
Under a modern market system, businesses should be allowed to operate independently and compete fairly while consumers should be free to choose and spend. Also, merchandise can be traded freely and equally, the document said.
While upgrading the role of the market, the CPC will transform government functions and improve the macro-regulatory system and governance.
China also aims to improve a new type of relations between industry and agriculture and between urban and rural areas. The relations will feature industry promoting agriculture, urban areas supporting rural development, agriculture and industry benefiting each other. There will also be integrated urban and rural development so that farmers can modernize and enjoy the benefits equally with urban residents.
China will also lower the investment threshold, step up the development of free trade zones and increase opening-up of inland, coastal and border areas.
New policies will apply both to domestic and international ventures, with the strategies of "bringing in" and "going global" combined to adapt to globalization, the communique said, while calling for an orderly, free flow of international and domestic factors, efficient allocation of resources and deep market integration.
POLITICAL REFORM
The reform of the political system will highlight the leadership of the CPC, people being masters of the country and the rule of law, according to the communique.
Power must be supervised by the people and exercised transparently.
Greater importance will be attached to perfecting a democratic system and enriching democratic forms to show the advantages of China's socialist political system.
Government functions must be transformed in a down-to-earth manner to establish a law-based and service-oriented government. Scientific macro-control efforts and effective governance by government bodies are a "basic requirement" of tapping the strengths of China's socialist market economic system, the communique said.
It calls for deepening reforms of the administrative system, innovating with administrative methods and enhancing the credibility and execution of the government.
China will also deepen judicial reform and step up building a socialist judicial system that features justice, high efficiency and authority to uphold the rights and interests of the people.
Endeavors should be made to uphold the constitution and laws, deepen reforms in administrative law enforcement and ensure independence and fairness in prosecuting bodies and courts, as well as to improve judicial practice and the protection of human rights, according to the communique.
SOCIAL AFFAIRS
Reforms must be accelerated in the social sector including education, employment, income distribution, social security and public health.
The reform also includes building a modern fiscal system that supports the initiative of both central and local governments.
China needs to improve its budget management and taxation systems in a bid to make responsibilities of government agencies match properly with what they spend, the communique said.
China will follow the development path of a socialist culture with Chinese characteristics.
The communique also urged building of a comprehensive system for ecological progress that protects the environment.
Modern armed forces with Chinese characteristics will be built, the communique said.
The CPC will strive to clear obstacles hindering the development of national defense and the army. The Party's goal is to build an army that "obeys the Party's command, is capable of winning battles and has a sound work style."
A total of 204 full members and 169 alternate members of the CPC Central Committee attended the plenum.
Standing committee members of CPC Central Commission for Discipline Inspection, leading officials from relevant departments, grassroots-level delegates to the 18th CPC National Congress as well as experts and scholars were also present at the plenary session as non-voting attendees.
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