The report delivered by General Secretary Xi Jinping of the Communist Party of China (CPC) Central Committee at the 19th CPC National Congress pointed out that China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development. According to the report, this is a pivotal stage for transforming the country’s growth model, improving its economic structure, and fostering new drivers of growth. It is imperative that China develops a modernized economy. This is both an urgent requirement for getting the country smoothly through this critical transition and a strategic goal for China’s development. The report called on the whole Party to put quality first and give priority to performance, to pursue supply-side structural reform as its main task, and to work hard for better quality, higher efficiency, and more robust drivers of economic growth through reform. The country needs to raise total factor productivity and accelerate the building of an industrial system that promotes coordinated development of the real economy with technological innovation, modern finance, and human resources. China should endeavor to develop an economy with more effective market mechanisms, dynamic micro-entities, and sound macro-regulation. This will steadily strengthen the innovation capacity and competitiveness of China’s economy. The chapter “Applying a New Vision of Development and Developing a Modernized Economy” of the report mainly touches on six aspects. In this issue, our column presents the first one.
Furthering Supply-side Structural Reform
In developing a modernized economy, we must focus on the real economy, give priority to improving the quality of the supply system, and enhance our economy’s strength in terms of quality.
We will work faster to build China into a manufacturer of quality and develop advanced manufacturing, promote further integration of the Internet, big data, and artificial intelligence with the real economy, and foster new growth areas and drivers of growth in medium-high end consumption, innovation-driven development, the green and low-carbon economy, the sharing economy, modern supply chains, and human capital services. We will support traditional industries in upgrading themselves and accelerate development of modern service industries to elevate them to international standards. We will move Chinese industries up to the medium-high end of the global value chain, and foster a number of world-class advanced manufacturing clusters.
We will strengthen infrastructure networks for water conservation, railways, highways, waterways, aviation, pipelines, power grids, information, and logistics. We will continue efforts to cut overcapacity, reduce excess inventory, deleverage, lower costs, and strengthen areas of weakness, and work to achieve a dynamic balance between supply and demand by improving the allocation of available resources and increasing high-quality supply.
We will inspire and protect entrepreneurship, and encourage more entities to make innovations and start businesses. We will build an educated, skilled, and innovative workforce, foster respect for model workers, promote quality workmanship, and see that taking pride in labor becomes a social norm and seeking excellence is valued as good work ethic.