Give full play to the obvious advantages of the basic economic system and promote the modernization of the national governance system and governance capacity

　　The Central Committee of the Communist Party of China’s Decision on Several Major Issues Concerning Upholding and Perfecting the Socialism with Chinese characteristics System and Promoting the Modernization of the National Governance System and Governance Capacity, which was deliberated and adopted at the Fourth Plenary Session of the 19th CPC Central Committee, comprehensively answered the major political question of "What to uphold and consolidate, what to improve and develop" in China’s national system and governance, and was a programmatic document for upholding and perfecting the Socialism with Chinese characteristics system and promoting the modernization of the national governance system and governance capacity. Among them, the major breakthrough in the connotation of the socialist basic economic system provides a basic basis for further clarifying the obvious advantages of China’s basic economic system and promoting the modernization of the national governance system and governance capacity.

　　Deeply understand the expansion of the connotation of the basic economic system

　　The basic economic system is a long-term and stable part of the economic system, which has a decisive influence on the attributes of the economic system and the mode of economic development. Since the reform and opening up, our party’s understanding of the connotation of the basic economic system has been developing with the development of practice, with public ownership as the main body and other economic components as the supplement; Develop into public ownership as the main body and multiple ownership economies develop together; Then it developed into the socialist basic economic system such as "public ownership as the main body, multiple ownership economies developing together, distribution according to work as the main body, multiple modes of distribution coexisting, and socialist market economic system" proposed by this plenary session. This new change expanded the connotation of the basic economic system. This expansion not only adheres to the basic principles of Marxist political economy, but also embodies the combination with China’s concrete reality, which is a major theoretical innovation.

　　According to the basic principle of Marxist political economy, the basic economic system of a society is determined by the social production relations of that society, and reflects and reflects the movement law of the social production relations. The movement law of social relations of production can be understood from the following four aspects:

　　First, from the dialectical relationship between productive forces and production relations, productive forces determine production relations, and what kind of productive forces development level requires what kind of production relations are suitable for it. China is and will be in the primary stage of socialism for a long time, which determines that our production relations can not be implemented with a single public ownership, and it is an inevitable choice for public ownership to be the main body and multiple ownership economies to develop together. The relations of production are counterproductive to the productive forces. The core of our party’s comprehensive deepening reform is to adjust the contents of the relations of production that are not suitable for the development of productive forces, constantly liberate and develop social productive forces, and meet the needs of the people.

　　Second, from the perspective of the nature of the ownership of the means of production, the nature of a social production relationship is determined by the nature of the ownership of the means of production, and different social systems provide different spaces for liberating and developing productive forces. The development of market economy under the condition of capitalist private ownership has also played an important role in promoting the development of productive forces. However, with the continuous rise of the new scientific and technological revolution and the deepening of social division of labor, capitalist private ownership is increasingly unable to meet the requirements of the development of new social productive forces, and its limitations are becoming more and more obvious. The international financial crisis triggered by developed countries such as the United States since 2008 is an obvious example. China has established a system of ownership with public ownership as the main body, which provides a broader space for liberating and developing social productive forces. Since the founding of New China, it has taken us 70 years to complete hundreds of years of development in western countries and become the second largest economy in the world, which is inseparable from the fact that our Party has led the people all over the country to always adhere to and improve the socialist ownership structure and give play to the remarkable institutional advantages of "concentrating on doing great things".

　　Third, from the internal structure of production relations, production relations are composed of production, distribution, exchange and consumption, and they are interrelated and interact with each other. Production determines distribution, and what kind of ownership has what kind of distribution system, so it is not difficult to understand that ownership and distribution system should be incorporated into the basic economic system. China’s economic development has entered a new era, and it is equally important to divide the "cake" and make it bigger. It is the foothold of the people-centered development thought to let the people share the fruits of development. Therefore, bringing the distribution system into the basic economic system is conducive to better grasping the dialectical relationship between making it bigger and making it bigger. It should be pointed out that in modern society, whether production determines distribution, exchange and consumption, or distribution, exchange and consumption react on production, it is often realized through market economy as a carrier. The market economy is always combined with a certain social system and has different characteristics under different social systems. The essential difference between the socialist market economy and the capitalist market economy is that we organically combine the socialist system with the market economy and form a unique institutional advantage. The "Decision" brings the socialist market economy into the connotation of the basic economic system, which has aroused people’s concern and produced different understandings. Some people think that this is to highlight the role of the market economy, while others suggest that the market economy does not belong to the socialist basic economic system. The author believes that,Simply speaking, the market economy itself is not our institutional advantage, and the market economy is not an invention of our country. However, since China’s reform and opening up, the great innovation in theory and practice lies in the organic combination of the socialist system and the market economy, which has formed our institutional advantage. It is also based on this point that the socialist market economy is brought into the basic economic system, not simply based on the market economy itself. Therefore, when we talk about China’s market economy, we must not lose the attribute "socialism" at any time. In this way, bringing the socialist market economy into the basic economic system constitutes a relationship of mutual connection, mutual support and mutual promotion with ownership and distribution system.

　　Fourth, from the dialectical relationship between the economic base and the superstructure, the nature of the economic base determines the nature of the superstructure, and the superstructure has a reaction to the economic base. Since the founding of New China 70 years ago, our socialist construction has always been carried out by exploring the dialectical relationship between economic base and superstructure, and has achieved various institutional innovations. This Decision clearly summarizes the remarkable advantages of thirteen systems, and puts forward that "the fundamental system, basic system and important system supporting Socialism with Chinese characteristics system should be adhered to and improved" and "an institutional system with complete system, scientific norms and effective operation", which highlights our party’s profound grasp of the movement law between Socialism with Chinese characteristics’s economic base and superstructure and more consciously promotes Socialism with Chinese characteristics’s development in accordance with the law. What needs to be further pointed out is that different components of the basic economic system have different decisive effects on the superstructure, in which ownership is the foundation and public ownership is the cornerstone. If this is not grasped well, the earth will shake. The fundamental political system of our people’s congress, the system of multi-party cooperation and political consultation led by communist party, etc. are all based on the system of public ownership as the main body and the common development of diversified ownership economies.

　　To sum up, the expansion of the connotation of China’s basic economic system shows that China’s socialist economic system is more mature and stereotyped, which is of great significance for giving full play to the superiority of the socialist system, liberating and developing social productive forces, promoting high-quality economic development, modernizing the national governance system and governance capacity, and achieving the goal of "two hundred years".

　　Firmly establish confidence in the obvious advantages of the socialist basic economic system

　　In the new era, on the basis of summing up the experience and lessons of socialist economic construction in the 70 years since the founding of New China, especially in the 40 years since the reform and opening up, our party has put forward the new connotation of the socialist basic economic system, which is the choice of the people, the choice of history and the choice of national conditions, and is a new promotion of our economic system advantages.

　　Historical facts show that human society has never had a standard, textbook-style market economy development path and model since it had a market economy. Any country’s market economy is concrete and historical, and it is combined with a country’s institutional system. There is no abstract market economy that transcends history and is divorced from national conditions and social systems. Today, we find that the market economy models of developed countries and developing countries are different, and the market economy models between developed countries and developing countries also have their own characteristics. Looking at the different development modes of market economy in the world, we can see that no mode can create such a great development miracle in just a few decades like Socialism with Chinese characteristics’s market economy. Moreover, practice has proved that Socialism with Chinese characteristics’s market economy is full of vigor and vitality.

　　China implements the socialist market economy, consciously explores the organic combination of the advantages of the socialist system and the advantages of the market economy in resource allocation, and creates a brand-new market economy model of human society, which has institutional advantages and great vitality beyond various models of the capitalist market economy, and opens up the road of economic development in Socialism with Chinese characteristics. The obvious advantages of Socialism with Chinese characteristics’s basic economic system are as follows: adhering to the people-centered development thought, taking meeting people’s needs for a better life as the fundamental purpose of socialist production, constantly safeguarding and improving people’s livelihood, enhancing people’s well-being, and taking the road of common prosperity, which fundamentally overcomes the disadvantages of capitalist production purposes. Adhering to the ownership structure with public ownership as the main body and multiple ownership economies developing together is not only conducive to exploring the law of planned and proportional development of the national economy, but also lays an economic foundation for continuously narrowing the regional gap, preventing polarization, maintaining social fairness and justice, and concentrating on major events; It is also conducive to mobilizing the enthusiasm, initiative and creativity of various economic entities and improving the efficiency of resource allocation and the vitality of economic development. Adhering to the distribution system with distribution according to work as the main body and coexistence of various modes of distribution is not only conducive to advocating labor glory, encouraging labor creation and mobilizing the labor enthusiasm of all workers; It is also conducive to mobilizing the enthusiasm of all kinds of factor owners, so that the vitality of labor, knowledge, technology, management and other factors can compete in generate, so that all sources of social wealth can fully flow in and all kinds of resources can be fully and effectively utilized.Adhering to the concept of shared development and taking the road of common prosperity is conducive to making the fruits of reform and development more fair to all people, promoting social harmony and promoting people’s all-round development. Insist on giving full play to the advantages of effective market and promising government, not only follow the general laws of modern market economy, but also reflect the unique advantages of socialist system, constantly innovate macro-control methods, and organically combine current and long-term, total and structure, supply and demand. Adhering to a higher level of opening up to the outside world and promoting the building of a community of human destiny conform to the historical trend, follow the laws governing the development of human society, combine adherence to independence with promoting economic globalization, and combine "going out" with "bringing in" to promote the development of economic globalization in the direction of universal benefit and win-win. Adhering to the Communist Party of China (CPC)’s leadership in economic work is not only conducive to giving full play to the Party’s core role of commanding the overall situation and coordinating all parties, but also to consciously explore the organic combination of socialism and market economy, better control the market economy and provide leadership guarantee for serving socialism and the people.

　　China’s basic economic system is a system formed under the guidance of Marxism, rooted in the land of China and deeply rooted in Chinese culture. It is a system that seeks happiness for the people of China and even the people of the world. It is a system that can continuously promote the progress and development of a big country with a population of nearly 1.4 billion, and ensure that the Chinese nation with a history of more than 5,000 years of civilization can achieve the goal of "two hundred years" and thus achieve great rejuvenation. We have no reason not to be confident about this.

　　Strive to promote the transformation of the advantages of the basic economic system into the effectiveness of national governance.

　　The relationship between institution and governance is complementary and mutually supportive. Institution refers to a series of rules, which is a reflection of laws. Governance is the practice of the system and the control of the law. A good system needs good governance, which in turn translates into good results. The remarkable advantages of Socialism with Chinese characteristics’s basic economic system should be transformed into governance efficiency through governance system and governance capacity, thus generating economic and social benefits and demonstrating the superiority of Socialism with Chinese characteristics’s system.

　　Focusing on the Socialism with Chinese characteristics system, China’s overall goal of promoting the modernization of the national governance system and governance capacity is clear: by the centenary of the founding of our party, obvious results have been achieved in all aspects of the system being more mature and stereotyped; By 2035, all aspects of the system will be more perfect and the national governance system and governance capacity will be basically modernized; By the centenary of the founding of New China, the national governance system and governance capacity will be fully modernized, so that the Socialism with Chinese characteristics system will be more consolidated and its advantages will be fully demonstrated. In order to better achieve this overall goal, we need to start from the following aspects and strive to promote the advantages of the basic economic system to better transform into the effectiveness of national governance.

　　First, uphold and improve the party’s leadership over economic work. The party’s leadership is the fundamental guarantee for the obvious advantages of the basic economic system to be transformed into governance efficiency. The party’s leadership over the economy plays a central role in taking the overall situation into consideration and coordinating all parties. Practice has repeatedly proved that only the leadership of the party can ensure that our economic development advances in the correct political direction. Without the leadership of the party, our economic development will be lost and go astray. To lead the economy well, our party member cadres need to become experts in understanding the economy. General Secretary of the Supreme Leader once stressed: "Party committees and governments at all levels should learn and make good use of political economy, consciously understand and better follow the laws of economic development, and constantly improve their ability and level of promoting reform and opening up, leading economic and social development, and improving the quality and efficiency of economic and social development." Under the leadership of the Party, giving full play to the leading role of Party organizations at all levels and all party member cadres is the fundamental force for us to promote the transformation of institutional advantages into governance efficiency.

　　The second is to develop and improve the ownership structure in the primary stage of socialism. It is necessary to adhere to the ownership structure in which public ownership is the main body and multiple ownership economies develop together. Unswervingly consolidate and develop the public sector of the economy and earnestly safeguard the dominant position of public ownership. By deepening the reform of state-owned enterprises, improving the modern enterprise system with China characteristics, strengthening and improving state-owned enterprises and state-owned capital, and enhancing the competitiveness, innovation, control, influence and risk resistance of the state-owned economy in market competition; Enlarge the function of state-owned capital by developing mixed ownership economy; Strive to develop a new collective economy. Unswervingly encourage, support and guide the development of non-public economy, improve the policy system of establishing pro-Qing political and business relations, improve the business environment, and promote the healthy development of non-public economy and the healthy growth of non-public economic people. Give full play to China’s ownership advantages and consolidate the economic foundation of Socialism with Chinese characteristics system.

　　The third is to develop and improve the distribution system in the primary stage of socialism. We must adhere to the distribution system in which distribution according to work is the main body and various modes of distribution coexist. Adhere to the principle of distribution according to work, strive to explore the realization mode and mechanism of distribution according to work, and play the role of distribution according to work in encouraging labor creation and mobilizing the enthusiasm of workers in the public ownership economy. Improve the mechanism for labor, capital, land, knowledge, technology, management, data and other factors to participate in the distribution. Increase the labor remuneration of workers, especially front-line workers, and increase the proportion of labor remuneration in the initial distribution. Encourage hard work to get rich, protect legitimate income, increase the income of low-income people, expand middle-income groups, adjust excessive income, clean up and standardize invisible income, ban illegal income, promote more reasonable and orderly income distribution, and narrow the income gap. Improve the redistribution adjustment mechanism and improve the system and mechanism to meet the basic needs of residents. Give full play to the advantages of China’s distribution system, solve the problem of material interests in Socialism with Chinese characteristics system, and move towards the goal of common prosperity.

　　The fourth is to speed up the improvement of the socialist market economic system. Give full play to the decisive role of the market in resource allocation, better play the role of the government, and give full play to both advantages. Implement the new development concept and build a modern economic system with the supply-side structural reform as the main line. Improve the institutional mechanisms to promote the development of advanced manufacturing industries and revitalize the real economy. Improve the system and mechanism of scientific and technological innovation, accelerate the construction of an innovative country, and build a new national system for tackling key core technologies under the conditions of socialist market economy. Build a high-standard market system, promote the construction of factor market system, eliminate various institutional and institutional obstacles that hinder the rational flow of factors and fair competition, and build a new open economic system with a higher level. Give full play to the advantages of China’s socialist market economic system and promote high-quality economic development.

　　 (Author: Liu Fengyi, Professor of School of Marxism and School of Economics, Nankai University)