Deepening Reform Comprehensively to Advance Chinese Modernization: Major Achievements and Global Contributions (Part 1)
Summary of Chapter 1: Major Achievements in Deepening Reform Comprehensively to Advance Chinese Modernization
1.1 Embarking on a New Journey: Launching a New Era of Reform and Opening Up in China
Key Takeaways
Adapting to changes and seizing opportunities has been the key for nations and countries to leap to higher levels.
Background
The Third Plenary Session of the 11th CPC Central Committee marked the beginning of China's gradual reform process. Reforms started in rural areas and expanded to cities, from outside the system to within, and from economic sectors to other areas. These reforms drove sustained and rapid economic and social development, helping China catch up with global progress. The interconnectedness and systemic nature of the reforms have become more evident, requiring comprehensive promotion and systematic integration.
The Third Plenary Session of the 18th CPC Central Committee set the goal of comprehensively deepening reform to enhance and modernize China's socialist system and governance. The reform focuses on comprehensiveness, depth, and fundamental changes, driven by the unique attributes of China's socialist system. The session addressed significant contradictions and challenges in China's development, establishing strategic focus, priorities, working mechanisms, and a roadmap for reform. Major breakthroughs in reform theories and policies were achieved, leading to a comprehensive deployment and mobilization for reform.
Since the 18th National Congress of the CPC, there have been complex and profound changes in China's domestic and international environments.
Domestically: After decades of rapid growth, the "growing pains" have gradually surfaced. The people's needs for a better life are now diversified and multi- faceted, and the issues of unbalanced and inadequate development have become increasingly prominent.
Internationally: The world is facing unprecedented changes unseen in a century. A new round of technological and industrial revolution is emerging; trade protectionism and a backlash against globalization is on the rise. Consequently, China, committed to promoting the construction of an open world economy, faces more challenges.
1.2 Innovating Theories: Forming Major Theoretical Innovations
Key Takeaways
The continuous process of reform and opening up requires courage and vision to innovate. In President Xi’s words, “we must think outside the box, overcome the constraints of departmental interests, and proactively carry out research and work out measures of reform.” The CPC has led reform with ideological and theoretical innovations, and has elaborated the missions, directions, objectives, strategies, and methods for deepening reform in the new era.
Reason for reform
Enable people to lead better lives. Adhering to a people-centered approach is a key element in the series of new ideas, views, and assertions for comprehensively deepening reform.
Direction for reform
Improve and develop socialism with Chinese characteristics and modernize country's governance system and governance capacity.
The approach to the reform
Deconstruction & Construction: Finding the right approach to reform involves both deconstruction and construction, as the right approach will yield more results with less effort.
Methodology
Market vs. Government Role: The market should play a decisive role in the allocation of resources and the government should better fulfill its role.
Legal Foundation: All major reforms must have a legal basis.
Systematic Integration: Reforms should focus more on systematic integration.
1.3 Optimizing Institutions: Modernizing China's System and Capacity for Governance
Key Takeaways
The main emphasis of comprehensive deepening reform has always been institutionalization, i.e., continuously improving the institutional framework, strengthening fundamental institutions, perfecting basic institutions, innovating key institutions, maturing the socialist system with Chinese characteristics, modernizing the national governance system and governance capacity.
Achievements
Local Government: The regional coordinated development strategy addresses the problem of unbalanced and insufficient regional development.
Tech: Science and technology system reform empowers innovation
Tax: Fiscal and taxation system reform to reduces taxes and redundant fees
Legal: Reforming the law enforcement and justice system to promote greater fairness and justice.
Household Registration System: Reforming the urban-rural binary system to promote integrated urban and rural development.
Healthcare: Reforming the medical and healthcare systems to provide more accessible and cheaper medical care.
Party Discipline: Reforming the Party system with the Central Party leadership's eight-point decision on improving conduct and addressing the issues of lax and weak party management.
1.4 Continuing the Miracle: Realizing the Historic Leap in China's Economic Power
Key Takeaways
Development is the master key to solving all of China's problems and is crucial for advancing Chinese modernization.
Achievements
1. Economy
China's economy is getting bigger in size and stronger in substance.
GDP Growth: From 2012 to 2023, China's GDP increased from 53.9 trillion yuan to 126 trillion yuan, with an average annual growth rate exceeding 6%.
Global Economic Share Increased: China’s total economic volume reached 18 trillion US dollars in 2023, accounting for around 18% of the world economy—up from 12.3% in 2012.
Contribution to Global Economic Growth Increased: China’s annual contribution to global economic growth exceeded 30%, making it the primary driver of world economic expansion.
Global Economic Rankings: China ranks as the second-largest economy globally, the largest manufacturing nation, the top goods trading partner, the second-largest consumer of commodities, the second-largest recipient of foreign investment.
Foreign Exchange Reserves: China has consistently held the top position in foreign exchange reserves for several consecutive years.
2. Scientific and Technological Modernization
The comprehensive deepening reform leverages science and technology as its engine, providing a solid material and technological foundation for Chinese modernization and high-quality development.
Increased R&D Investment: From 2012 to 2023, China's total R&D investment increased from 1.03 trillion yuan to 3.3 trillion yuan, accounting for 2.64% of GDP.
Significant Innovative Results: Electric vehicles, lithium batteries, and photovoltaic products have become new symbols of China. China occupies three of the world's top five technology clusters, according to the Global Innovation Index 2023 published by the World Intellectual Property Organization (WIPO).
High-Tech Manufacturing Growth: In the first quarter of 2024, China's high-tech manufacturing value added grew by 7.5% year-on-year, with the PMI for high-tech manufacturing reaching 53.9%, significantly outpacing the industrial average.
1.5 Benefiting the People: Constant Increase of the Sense of Gain, Happiness, and Security
Key Takeaways
The main focus of comprehensively deepening reform is to improve people's quality of life by enhancing their sense of gain, happiness, and security. This is achieved by ensuring people's access to childcare, education, employment, medical services, elderly care, housing, and social assistance
Measurements
1. Major Policy Documents and Action Plans
China's Education Modernization 2035
Healthy China 2030
National Medium- and Long-Term Plan for Active Response to Population Aging
2. Reform programs
Since the Third Plenary Session of the 18th Central Committee of the CPC, the CPC Central Committee has launched over a thousand of reform programs to ensure the people's well-being.
Achievements
1. To achieve the first centenary goal, China has won the largest battle against poverty in human history.
a. Poverty alleviation: By the end of 2020, all 98.99 million rural poor had been lifted out of poverty under the current standards.
b. Expansion of middle-income group: In 2023, the national per capita disposable income exceeded 39,000 yuan, and the middle-income group continued to expand.
2. Substantive progress in promoting people's well-rounded development and common prosperity for all.
a. Employment: From 2013 to 2022, more than 13 million urban jobs have been created each year on average.
b. Housing: Over 140 million people benefited from government subsidized housing projects.
c. Education: On the basis of the full universalization of compulsory education, all 2,895 counties (county-level administrative areas) nationwide achieved a basic level of educational equity in compulsory education.
1.6 Eco-friendliness: Promoting Harmony between Humanity and Nature
Key Takeaways
China has carried out a series of initiatives, making strides in building a beautiful China and achieving historic, transformative, and comprehensive changes in ecological and environmental protection.
Process
1. Transformation in Approach
Ecological conservation is a crucial component in the overall framework of China's socialist cause. The top-level designs and strategic deployments have led to significant transformations: from targeted remediation to systematic governance, from reactive responses to proactive initiatives, and from being a participant to a leader in global environmental governance.
2. Institutional Reform
Several reforms provide institutional guarantees for improving urban and rural living environments and building a beautiful China.
Government environmental inspection mechanism: In 2015, China established a central government environmental inspection mechanism.
Lifelong Accountability System: The country introduced a lifelong accountability system for Party and government officials regarding ecological damage.
Chief Systems Implementation:
River Chief System
Lake Chief System
Forest Chief System
National Park-Based Nature Reserve System: China has been constructing a national park-based nature reserve system and formulating and amending a series of critical environmental laws and regulations.
Achievements:
From 2012 to 2022, China's annual energy consumption growth rate of 3% supported an average economic growth rate of 6.5%. Over this period, energy intensity cumulatively decreased by 26.2%, making China one of the fastest countries in reducing energy intensity globally.
1.7 Win-Win Cooperation: Promoting High-Standard Opening Up to the Outside World
Key Takeaways
Opening up is a defining feature of Chinese modernization. China, while emphasizing the expansion of domestic demand, is also committed to constructing an open economic system with higher standards.
Measurements & Achievements
1. China aligned with international high-standard economic and trade rules, aiming to foster a first-class business environment that is market-oriented, law-based, and internationalized.
a. Pilot Initiatives: Development of free trade zones, free trade ports, and comprehensive service sector pilots to enhance openness.
b. Eased Restrictions: Reduction of limitations on registered capital and investment methods.
c. Innovative Mechanisms: innovative institutional mechanisms are being explored.
i. Reduction of the negative list for foreign investment.
ii. Refinement of regulatory models for digital trade and emerging business models.
iii. Establishment of a negative list management system for cross-border service trade.
iv. Exploration of reforms in state-owned enterprises, intellectual property rights, and market procurement.
2. China pursued a more proactive opening up strategy.
a. Global Free Trade Network: China have worked to build a globally oriented network of high-standard free trade areas and accelerated the development of pilot free trade zones and the Hainan Free Trade Port.
b. Belt and Road Initiative: The Belt and Road Initiative has been welcomed by the international community both as a public good and a cooperation platform.
i. China has signed more than 230 cooperation documents on the Belt and Road Initiative with over 150 countries and 30 international organizations.
ii. From 2013 to October 2023, the cumulative trade volume between China and BRI partner countries exceeded 21 trillion US dollars, with direct investment surpassing 270 billion US dollars.
3. China is actively promoting greater liberalization and facilitation of trade and investment and improving planning for regional opening up.
a. Since 2013, China set up 22 pilot free trade zones and is constructing a free trade port in Hainan, while advancing the opening up of inland and border regions.
b. China signed 22 free trade agreements (FTAs) with 29 countries and regions
c. The Foreign Investment Law took effect in 2020.
d. In 2023, China's utilized foreign investment exceeded 1.1 trillion RMB, ranking second globally.
1.8 Crucial Move: Advancing the Steady and Sustainable Development of Chinese Modernization
Key Takeaways
Reforms have been continuously infusing Chinese modernization with inexhaustible sources of vitality.
Reforms
Reforms have been transformed from a limited set of explorations and breakthroughs in certain areas into an integrated drive being advanced across the board.
Challenges
The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization.
Complex international and domestic situations
A new round of scientific and technological revolution and industrial changes
New expectations from the people
Solution
China must further deepening reform comprehensively with a view to advancing Chinese modernization in order to gain the initiative and secure the future.
Summaries of Chapter 2&3: To be Continued…