BEIJING, Dec. 9 (Xinhua) – At a time when the global economic landscape is rapidly changing, President Xi Jinping’s economic thinking offers a glimpse into the future of the world’s second-largest economy.
Xi Jinping’s reflection on the socialist economy with Chinese characteristics for a new era, officially unveiled in 2017, is based on Xi’s new development philosophy and has guided the country’s economic practices over the years.
An examination of Xi’s economic thinking could help Chinese observers gain a better understanding of China’s development goals and how the country is preparing to meet them.
To understand the objectives of China’s economic governance, one must understand the term “main contradiction”.
Regarding the dominant issues of global importance in society, the main contradiction in China has evolved over time. How to solve problems often influences the development of government policies.
“As socialism with Chinese characteristics has entered a new era, the main contradiction facing Chinese society has evolved. What we now face is the contradiction between unbalanced and inadequate development and the ever-increasing needs of people for a better life, ”said Xi, secretary general. of the Communist Party of China (CPC) Central Committee at the 19th CPC National Congress in 2017.
To improve lives, Xi championed a people-centered development philosophy and carried out reforms in all areas of public interest, including education, health care and social security.
To meet the growing needs of the population for high-quality products and services, Xi proposed “supply-side structural reform”, which has resulted in industry-specific policies for the development of high quality.
“Seeking happiness for the Chinese people is the CCP’s initial aspiration. We must never forget our initial aspiration and always consider the people’s desire for a better life as our goal, ”he said.
China’s real economy has enjoyed greater support under the guidance of Xi’s economic thought.
“The real sector is the foundation of a country’s economy and the source of wealth. Advanced manufacturing is a key to the real economy, and development should never stray from the real sector towards the sector. virtual, ”he said during a visit to a manufacturing company in 2018.
Under Xi’s leadership, China has experienced a nationwide deleveraging campaign, reducing growing local government debt and taking decisive action to curb real estate speculation.
Financial resources have poured into industries, including agriculture and manufacturing, while cutting-edge technologies such as artificial intelligence and 5G are being encouraged to reinvent the industrial sector.
“We must seek genuine economic growth rather than exaggeration. In other words, we want efficient, high-quality and sustainable growth,” Xi said.
Xi’s economic thinking shed light on a dilemma facing all policymakers around the world: managing the relationship between government and the market.
At a pivotal CPC meeting chaired by Xi in 2013, China acknowledged the market’s “decisive” role in resource allocation, changing its tone from the “fundamental” role it has played since 1992.
In the meantime, the government should play its role better, the meeting decided. He added that the heart of reforming China’s economic system is to properly manage the relationship between government and the market.
The “invisible hand” and the “visible hand” have since generated more synergies to boost growth. National authorities have stepped up the reduction of red tape and minimized direct intervention in market activities. The government plays an active role where needed, helping the country withstand external shocks and creating a healthy business environment.
“Developing a market economy under socialist conditions is a remarkable invention of the CCP,” Xi said.
“One of the crucial factors in China’s economic success is that we have brought into play the advantages of both the market economy and the socialist system,” he said.
The development approach that China advocates in Xi’s thought takes harmony and coordination into account.
At the national level, this approach emphasizes synchronized development between regions, optimization of resource allocation and reduction of economic disparities. China has rolled out regional development plans nationwide, including in the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Guangdong-Hong Kong-Macao Great Bay region.
Globally, China champions multilateralism and emphasizes cooperation to address common global challenges, including climate change and the fight against the pandemic.
Wider still, Xi’s economic thought considers shared benefits for humans and nature. To foster a new human-nature relationship where the two can thrive and live in harmony, China has made ambitious commitments for a greener future, including peaking carbon dioxide emissions before 2030 and achieving neutrality carbon before 2060.
“Coordination is both a tool and an end for development,” Xi wrote in a 2019 Qiushi Journal article.
“At the same time, it is a standard and a yardstick for evaluating development,” he said.
As 2021 dawns, a buzzword guiding the country’s economic policies is “common prosperity”.
“Common prosperity is the essential condition of socialism and an important feature of Chinese modernization,” Xi said.
Rather than “stealing from the rich to help the poor,” the phrase refers to the wealth shared by everyone – physically and intellectually.
“When we talk about common prosperity, we mean prosperity for everyone. It means that people are rich simultaneously in their material and spiritual life. It is neither prosperity for only a few people nor egalitarianism,” he said. Xi said.
Pursuing this goal, China is committed to addressing the relationship between efficiency and equity and to making basic institutional arrangements for income distribution.
The vision of shared prosperity goes beyond wealth for the Chinese. On various international occasions, Xi has called for building a “community of shared future for mankind” and win-win for all.
“On the road to the well-being of all mankind, no country or nation should be left behind,” he said.