The Paramount Importance of Deepening Reform Comprehensively

Zheng Bijian

The Third Plenary Session of the Eighteenth Central Committee of the CPC adopted “The Resolution of the Central Committee of the CPC on Major Issues Concerning Deepening Reform Comprehensively” (hereafter referred to as “Resolution”). It addressed, among other major issues, the paramount importance of deepening reform comprehensively from a new historical starting point by referring both to China’s historical development since the Third Plenary Session of the Eleventh Central Committee of the CPC and to the domestic and international situations. A profound understanding of the importance of deepening reform is crucial to strengthening our confidence in reform and heightening our sense of urgency and responsibility for it.    

The task of deepening reform comprehensively is unprecedented in magnitude in history, unmistakably reflecting the new requirements for development since the Third Plenary Session of the Eleventh Central Committee of the CPC.

Deepening reform comprehensively is a great endeavor undertaken by people of all ethnic groups under the leadership of the Central Committee with President Xi Jinping at the core. It proceeds at a new historical starting point and has a set of new historical characteristics. A central historical mission it is to accomplish is to ensure that China becomes a well-off society comprehensively by the year 2020 as planned. China will then become a modern socialist society that is affluent, strong, democratic, civilized, and harmonious by the middle of the 21^st century, thereby fulfilling the China Dream of the great renaissance of the Chinese nation.

Undoubtedly, this is a battle we must win in the course of fulfilling the great renaissance of the Chinese nation. China has been amidst a new era of development since the beginning of the second decade of the 21^st century. This period is distinguished from both the previous decade and the past three decades as a whole. On the one hand, China’s social and economic development and comprehensive national power have reached new levels; the Chinese nation is closer to accomplishing the goal of great renaissance than in any other period in history, and we are confident of reaching it now more than at any time in the past. On the other hand, during this period more complex and challenging contradictions and problems exist in the course of social and economic development. These contradictions and problems are not to be evaded or bypassed, and failure to address them appropriately would result in China falling into the “middle income” trap. Whether we will be able to maintain sustained, healthy social and economic development and thus turn China into a well-off society comprehensively by the years 2020 as planned hinges on whether we will be able to overcome these hurdles by making major strides in reform. 

At such an important historical juncture, the cadres and the masses are full of expectations of us and the international community is focusing their attention on us. Will we have the confidence, wisdom, and courage to make major strides in reform and thus open up new ground on our way forward? The Eighteenth National Congress of the CPC stipulated the strategic tasks of building up a well-off society comprehensively and deepening reform comprehensively, and the Third Plenary Session of the Eighteenth Central Committee of the CPC fully implemented the spirit of the Eighteenth National Congress of the CPC by mapping out a systematic blueprint for deepening reform comprehensively. This fully demonstrates the unmistakable stance of the CPC on promoting reform unswervingly in accordance with the people’s wishes and the requirements of the times. Also, this demonstrates the party’s deep conviction in the cause of socialism with Chinese characteristics, which has given them the courage to advance it to a new level by engaging in reform and innovation. Therefore, the Third Plenary Session of the Eighteenth Central Committee of the CPC will stand out as a monumental event in the entire course of reform, opening up, and socialist modernization drive.

A review of the history of reform and opening up shows that all the third plenary sessions of the Central Committee of the CPC ever since then have thematically focused on reform. The Third Plenary Session of the Twelfth Central Committee focused on reform of the economic system, principally in cities. The Third Plenary Session of the Thirteenth Central Committee deliberated deepening reform of the economic system, particularly price reform and enterprise reform. The Third Plenary Session of the Fourteenth Central Committee explored establishing a socialist market economic system. The Third Plenary Session of the Fifteenth Central Committee was primarily concerned with rural reform. The Third Plenary Session of the Sixteenth Central Committee addressed the issue of how to improve the socialist market economic system. Finally, the Third Plenary Session of the Seventeenth Central Committee was devoted to promoting rural reform and development under the new historical conditions. Clearly, each of these had as its theme reform to be undertaken in a certain area or specific aspect within the economic system.

The Third Plenary Session of the Eighteenth Central Committee proposed deepening reform comprehensively, with the focus on reform of the economic system. Specifically, the reform will be broad-based and systematic such that it will be unprecedented in history, encompassing the economic system, political system, cultural system, social system, ecological system, and the system governing the building of the party. The Third Plenary Session of the Eighteenth Central Committee made the most comprehensive and systematic planning for reform since the Third Plenary Session of the Eleventh Central Committee, and this featured most prominently in its “Resolution”.   

In reality, the problems to be addressed in the process of deepening reform will be more sensitive and complex, and the tasks to be accomplished will be more arduous. Over the past 35 years, China’s reform and opening up have progressed in a step-by-step manner, solving problems from the easiest to the most difficult. In the process a series of major obstacles in the way of development have been tackled. However, many contradictions and problems that remain at deeper levels are to be dealt with; these are tough nuts to crack, so to speak. On top of that, with profound changes occurring in the domestic and international situations, China confronts a series of new issues and challenges. As domestic and international factors interact and as old and new problems are intertwined, our task is extraordinarily daunting. In particular, we need to tackle an array of deeply entrenched institutional problems. The Central Committee has emphasized that reform has reached a “deep water zone”, where we need to focus our attention on attacking a number of major issues. This metaphor represents an accurate description and judgment of the practical, present-day conditions in which reform is situated. Based on this judgment, both the report delivered at the Eighteenth National Congress of the CPC and the “Resolution” of the Third Plenary Session of the Eighteenth Central Committee of the CPC urged the whole party to wade into “deep water” and come to grips with tough issues by being more determined and courageous to break through ideological constraints and deeply entrenched vested interests, thereby promoting perfection and development of socialism with Chinese characteristics.   

The task of deepening reform comprehensively is unprecedented in history to the extent that it is systematic and extensive and needs to be conducted in a coordinated manner. As the economic system, political system, cultural system, social system, and the ecological system further develop and are increasingly integrated, reform in any of the areas will inevitably impact that in the others. Therefore, coordination in reform is essential. While reform in each of these areas may proceed at its own pace and have its own priorities, reform in all these areas needs to be pushed forward in a well-coordinated and collaborative manner. We should avoid the scenario in which each goes its own way, which eventually leads to lopsided reform. Only when reform in all these areas mutually supports each other for synergic effects can we expect to amplify the results it promises. The Central Committee has established the Leading Group for Comprehensively Deepening Reform to be responsible for overall design, coordination, facilitation, and implementation of reform. This represents a major move, the first of its kind since reform and opening up, for deepening reform.

In summary, deepening reform comprehensively will be the most broad-based and profound revolution for the CPC since the initiation of reform and opening up.

Deepening Reform Comprehensively Will Lead to New Breakthroughs in Social and Economic Development

Building on the objective established at the Sixteenth and Seventeenth National Congresses of the CPC, that is, building China into a well-off society comprehensively, the Eighteenth National Congress of the CPC put forward a series of objectives, which include: sustained, healthy economic development; continuous expansion of the people’s democracy; enhanced “soft” power of the national culture; comprehensive increases in the standard of living of the people; and major progress in building an resource-conserving, environmental-friendly society. These are convergent with the goals or requirements laid out in the reports of the Sixteenth and Seventeenth National Congresses of the CPC[ii]. In one word, by building a well-off society at a higher level for the Chinese people of more than one billion, we will achieve the following ultimate objectives: the economy is more developed; the democracy is improved; science and technology and education make further progress; the national culture is thriving; the society is more harmonious; and the people’s lives are more affluent. Accomplishment of these will mean that China’s social and economic development has advanced to a new level in a comprehensive manner. However, this requires that we deepen reform comprehensively. Only by doing so can we find systematic solutions to the series of prominent problems in the course of social and economic development under the new conditions.     

Advancing China’s social and economic development in a comprehensive manner requires that we endeavor to accomplish what I call “four cardinal tasks” in deepening reform:

First, appropriately handle the relationships between the government and the market so that the market will play a more fundamental role in the allocation of resources, which is crucial to improving the quality and benefits of economic development. Although China is now the second largest economy in the world, it is so more in terms of size than in terms of strength, and lags behind in innovation and entrepreneurial capabilities. There is much to be desired both in the quality and benefits of economic development. This is attributed to the irrational industrial structure and insufficient implementation of reform of the economic system. It is imperative that we change the mode of economic development at an accelerated pace, strengthen innovation as a driving force for development, and, at the same time, speed up institutional reform. Handling the relationships between the government and the market is central to institutional reform. That is, we need to steadily promote development of a market economic system so that the market plays a more fundamental role in resource allocation. Resources will then be allocated based on market rules and prices determined by competition so that they will achieve maximal levels of efficiency and benefits; factors of production will be concentrated more in competitive industries, modern service industries, and strategic or forward-looking industries. 

Second, accelerate rural-urban integration as an institutional requirement. Specifically, we need to promote urbanization, agricultural modernization, and improve the geographical distribution of productive forces. Imbalanced development between rural and urban areas is a major obstacle that hinders China’s social and economic development from reaching the next level. Particularly, competitive industries and quality factors of production are mostly located in cities and the coastal areas, leaving the vast rural areas and the central and western regions relatively disadvantaged. Should we fail to radically change this state of affairs in the next several years, we will unlikely meet the goal of turning China into a well-off society comprehensively. Therefore, we need to accelerate implementation of the strategy of developing the West and fostering the rise of the central region in an effort to shift more strategic industries and quality factors of production toward these regions and the vast rural areas and hence render the geographical distribution of the national economy more balanced and rational. Only by doing so can we achieve more balanced development of the West and the East and thus common prosperity in accordance with the “two-consideration” concept proposed by Deng Xiaoping[iii].    

Third, promote the development of the distribution and social security systems in our efforts to ensure that the people more fully benefit from the fruits of development. The extent to which a modern society is civilized is measured not only by its level of economic development but also by how fully the benefits of development accrue to the people and how adequately their various interests are protected. As we forge ahead on the road of building a well-off society comprehensively, it is of great importance that we appropriately handle the issues of distribution and social security and thus promote social equity and justice on the basis of the development of productive forces and national power and in accordance with the principle, “To each according to his contribution.” Building a well-off society comprehensively under the leadership of the CPC is essentially aimed at accomplishing the following: the people have access to education; each one is remunerated for his work performed; the ill have access to medical treatments; the aged are taken good care of; and the people are well-housed. A socialist modern country that is affluent, strong, democratic, civilized, and harmonious is also defined by fulfillment of these and other goals. Actually, these constitute a social vision that had been put forward over the past several thousand years of the Chinese civilization as best representing the wishes of the common people but had never been turned into reality.       

Fourth, improve the social governance system. In essence, enhancing social governance is to maintain social harmony and stability and strengthen innovation and creation capabilities, which directly relate to the development of a modern national governance system. With a view to accomplishing these goals, the “Resolution” proposed a series of measures for improving the ways of social governance, stimulating the vitality of social organizations, developing an innovative system for effectively handling the contradictions embedded in the Chinese society, and for improving the public security system. At the same time, the document set out the major tasks of deepening reform of the education system comprehensively, promoting innovation of cultural institutions, and improving the systems for promoting employment and entrepreneurial activities. Clearly, in mapping out the reform of the social governance system in the “Resolution”, the Central Committee had the reform and development of the country’s entire institutions and various systems at the forefront of its mind. Deng Xiaoping remarked in his Southern Tour talks in 1992, “My guess is that it will probably take us another thirty years to develop a more mature, better-defined system in every field of endeavor.” As I understand it, that set of more mature, better-defined systems would include one for social governance.

To summarize, deepening reform comprehensively will bring about major breakthroughs in social and economic development and hence take it to the next level. However, none of these breakthroughs would be possible without a more mature socialist system with Chinese characteristics and an improved socialist governance system and governance capabilities. With this realization the “Resolution” incisively stated, “The overall objective of deepening reform and opening up is to improve and develop the socialist system with Chinese characteristics and promote modernization of the national governance system and governance capabilities.” While we studied the “Resolution”, we deeply felt that it brimmed with a spirit of reform and was guided by a reform-focused, courageous way of thinking. It introduced a number of new proposals and measures for reform in various areas (including the economic system, political system, cultural system, social system, ecological system, and the system governing the building of the party), many of which represent major breakthroughs in theory and practice. No doubt, it provides a description of the “overall objective of deepening reform and opening up” most vividly and accurately. 

At the Heart of Deepening Reform Is Implementing the “Three Further Liberates” Policy in Order to Significantly Increase the Strength and Vitality of Socialism with Chinese Characteristics

Comrade Mao Zedong solemnly pointed out in his important work “On Coalition Government” (April 1945), “In the final analysis, the impact—good or bad, great or small—of the policies and practices of any Chinese political party on the people depends upon whether and how much they help develop their productive forces and upon whether they fetter or liberate these forces.” Understanding the profound importance of deepening reform is essentially to appreciate its role in liberating and developing the productive forces of the Chinese nation. From the strategic standpoint of adhering to and developing socialism with Chinese characteristics, and in accordance with the party’s basic theories, lines, programs, experience, and requirements, the “Resolution” set forth the “three further liberates” policy, that is, further liberating our thought, further liberating and developing productive forces, and further liberating and enhancing social vitality. 

The “three further liberates” are interconnected and mutually support each other. Further liberating our thought provides the prime driving force. Further liberating and enhancing social vitality results from the former and serves as an important foundation for further liberating and developing productive forces. In essence, further liberating and developing productive forces is to release the people’s innovation and entrepreneurial potentials and improve their capabilities for coping with and withstanding big risks.   

As a major creative adaptation of socialism, socialism with Chinese characteristics achieves an organic combination of the socialist system and the market economic system. As a result, it brings into play the former’s distinctive advantage of being able to concentrate resources for accomplishing big goals and, at the same time, strengthens its own vitality through development of the latter. It had been pioneered by the CPC as a monumental achievement in the process of exploring the laws that govern socialist construction. Since reform and opening up, we have continuously deepened reform of the economic system and various other systems in order to promote development of productive forces and augment the vitality of the party and the nation by liberating the minds of the people as the most active factor of productive forces and stimulating their creative power. Of course, we are soberly aware that China is the world’s largest developing country with relatively low levels of development of productive forces and that development is uneven with coexistence of advanced and backward ways of production. Therefore, we have a long way to go to catch up with the developed countries. At present the most pressing and fundamental task is to further liberate and develop productive forces. We are fully aware that the problems that constrain the development of productive forces are numerous and are historical, ideological, or institutional in nature, including a relatively weak foundation and insufficient levels of social vitality. We put forward and highly accentuated the “three further liberates” in the “Resolution” ultimately for the purpose of tackling these problems.     

We want to strengthen the “three self-confidences”[iv], but how can we do so? We rely on socialism with Chinese characteristics, which is more efficient in developing productive forces, is better at guaranteeing the people’s interests, and is more capable of stimulating the entire people’s initiative and creativity and strengthening social vitality. Therefore, we will be more able to gain comparative competitive advantages. With the “three further liberates”, the orientation, goals, and objectives of reform are better and more fully defined. It will strengthen the vitality of the party and the nation, reflect the superiority of socialism with Chinese characteristics, and cement the people’s “three self-confidences” in our political system, the party line, and party theories. 

Seize the Strategic Opportunities for Deepening Reform in the Next Several Years for a New Chapter in the Cause of Great Renaissance of the Chinese Nation

China will have become a well-off society comprehensively by the year 2020 and will have achieved modernization by and large in thirty years’ time after that. These will be great milestones in the history of modern China. New changes beget a new awakening which, in turn, leads to new changes. This requires that our party, our people, and our nation, including the army, be more self-confident in our glorious traditions and the present political system, line, and theories. Specifically, we need to have a heightened awareness of the importance of liberating and developing productive forces and promoting sustained, healthy social and economic development and look at the things happening around the world with a new perspective, therefore embracing the strategic opportunities as they arise under the new conditions.  

The second decade of the 21^st century has, since its beginning, been an important period of strategic opportunities for China. This understanding makes us more keenly realize the profound importance of the “Resolution” to deepen reform comprehensively.   

First, it so happens that we are presently in the beginning of the second half the 70-year period defined in Deng Xiaoping’s “three-step” development strategy[v]. In the first 35 years of the period, the CPC and the people were phenomenally successful and reached the first two strategic goals. Whether the third strategic goal will materialize depends upon how much we can accomplish in the second 35 years. The next several years will be crucial as our efforts to build a well-off society comprehensively enter a decisive phase. The Third Plenary Session of the Eighteenth Central Committee of the CPC has now set in motion this phase by spelling out our glorious mission ahead.  

Second, at this crucial moment in history, the call for deepening reform comprehensively from both within the party and all quarters of the society is becoming increasingly vocal, with their expectations on the rise. A generally uniform understanding across the society of the importance and urgency of the effort creates very favorable conditions for unifying our thought and realizing a consensus and synergy for it. The prevailing trend is that everyone desires peace, progress, and prosperity. The existence of prominent contradictions and problems of various sorts has not prevented us from going forward toward greater success and will unlikely prevent us from doing so in the future.    

Third, reform and opening up over the past 35 years have laid a solid foundation for deepening reform comprehensively and have also accumulated a wealth of experience for doing so. Our understanding of the laws that govern development of the human society, socialist construction, and governance by the CPC has reached a new level, and so has our grasp of the direction, routes, and objectives of reform and opening up. At the same time, we are better capable of bringing reform and development within our control and maintaining stability. Also, we have remarkably increased our capabilities for innovation and entrepreneurship and for withstanding risks.

Fourth, we are blessed with a generally favorable international situation. Peace and development remain the dominant themes of the times. The new scientific and technological revolution is making breakthrough progress. The human society is increasingly driven by information technologies. Global cooperation and convergences of interests continue to expand in all directions and at different levels. The developing countries and newly emerging economies are strengthening their national power. All these are bringing forth new opportunities for China’s reform and development. Nevertheless, the international situation is complex, with positive and negative changes being intertwined. This dual nature of changes will persist for a long period of time to come, which we should be fully prepared for.

Finally, and most importantly, we have the strong leadership of the CPC. Deepening reform comprehensively requires that we strengthen and improve the leadership of the party by more fully exercising its central roles of commanding the whole situation and coordinating the efforts of all quarters and by making it a Marxist ruling party that is learning-, service-, and innovation-oriented. Superior leadership skills and governance capabilities are essential for success of reform. Holding high the banner of socialism with Chinese characteristics and keeping abreast of the times while building on the past, the new Central leadership with President Xi Jinping at the core has the courage to break through ideological constraints and entrenched vested interests and promote innovation both in theory and practice.   

To conclude, the Third Plenary Session of the Eighteenth Central Committee of the CPC has made its overall planning for deepening reform comprehensively at the right moment in history. Rare opportunities are ahead of us. We are confident that under the overall guideline of the Eighteenth National Congress of the CPC and the specific program of action adopted at the Third Plenary Session of the Eighteenth Central Committee of the CPC, we will be able to win the decisive battle of deepening reform comprehensively and therefore open up new ground in reform and opening up. Therefore, we will be able to turn China into a well-off society comprehensively and, on that basis, into a modern socialist country that is affluent, strong, democratic, civilized, and harmonious, hence fulfilling the China Dream of great renaissance of the Chinese nation.