Exploration of basic economic system and the road of common prosperity

　　This year is the Communist Party of China (CPC)’s centenary birthday. From the epoch-making of the founding of the Party, to the epoch-making of the founding of New China, to the earth-shaking reform and opening up, and to the historic achievements and changes in the cause of the party and the state since the 18th National Congress of the Communist Party of China, the magnificent journey of the past 100 years and the achievements that have attracted worldwide attention complement each other. In his important speech at the celebration of the centenary of the founding of the Communist Party of China (CPC), General Secretary of the Supreme Leader pointed out: "Taking one’s own road is the whole theoretical and practical foothold of the Party, and it is also the historical conclusion drawn from the Party’s hundred years of struggle.". In the past 100 years, the Chinese nation has ushered in a great leap from standing up, becoming rich and becoming strong, and created an unprecedented miracle of development. The fundamental reason lies in our party’s insistence on combining the basic principles of Marxism with the concrete reality of China and the excellent traditional Chinese culture in the process of revolution, construction and reform, and opening up a development path suitable for China’s national conditions. In this process, our party adhered to the leadership of economic work and made great achievements in promoting economic development.

　　China’s socialist basic economic system is constantly improving in exploration.

　　Over the past 100 years, especially since the reform and opening-up, our Party has United and led the people of China, defined economic development goals, formulated economic policies, promoted economic development, and constantly explored and improved the basic economic system.

　　During the period of new-democratic revolution, the focus of our party’s economic work is to "carry out all necessary and possible economic construction undertakings", and the focus of economic system construction is to eliminate exploitation, emancipate the laboring masses, and enable China people to truly be masters of their own affairs. Our party united and led the people to overthrow the three mountains of imperialism, feudalism and bureaucratic capitalism, established People’s Republic of China (PRC) where the people were masters of their own affairs, and achieved national independence and people’s liberation.

　　During the period of socialist revolution and construction, our Party united and led the people to carry out the socialist revolution, realizing the most extensive and profound social changes in the history of the Chinese nation, realizing the great leap of the poor and populous eastern country into the socialist society, and laying a fundamental political premise and institutional foundation for realizing the great rejuvenation of the Chinese nation. During this period, our party led the people to establish an independent and relatively complete industrial system and national economic system, and accumulated important experience in socialist construction in China, a big eastern country with a very backward level of social productivity.

　　In the new historical period of reform and opening-up, our party has profoundly summed up both positive and negative historical experiences and realized that poverty is not socialism. Based on the national conditions and world conditions, Comrade Deng Xiaoping clearly put forward that "some people and some areas should get rich first, so as to drive and help backward areas". The Twelfth National Congress of the Communist Party of China put forward that "the individual economy of workers should be encouraged to develop appropriately within the scope stipulated by the state and under the administration of industry and commerce as a necessary and beneficial supplement to the public sector of the economy". The 13th National Congress of the Communist Party of China clearly stated that a certain degree of development of the private economy "is a necessary and beneficial supplement to the public economy". In 1992, Comrade Deng Xiaoping put forward "three benefits" in his southern talk, emphasizing that "planned economy does not mean socialism, and capitalism also has plans; Market economy is not equal to capitalism, and socialism also has a market. Planning and market are economic means. " The 14th National Congress of the Communist Party of China clearly put forward the goal of establishing a socialist market economic system, which further promoted the ownership reform. The 15th National Congress of the Communist Party of China defined "public ownership as the main body and multiple ownership economies developing together" as a basic economic system in the primary stage of socialism in China, and put forward a system of "insisting on distribution according to work as the main body and coexistence of multiple modes of distribution". Combine distribution according to work and distribution according to factors of production ",clearly"The non-public economy is an important part of China’s socialist market economy. " The 16th National Congress of the Communist Party of China put forward "unswervingly consolidate and develop the public sector of the economy" and "unswervingly encourage, support and guide the development of the non-public sector of the economy", and emphasized that the two are "unified in the process of socialist modernization and cannot be opposed". The 17th National Congress of the Communist Party of China proposed to "insist on equal protection of property rights and form a new pattern of equal competition and mutual promotion of all kinds of ownership economies".

　　Since the 18th CPC National Congress, Socialism with Chinese characteristics has entered a new era. The 18th National Congress of the Communist Party of China proposed "to ensure that all ownership economies use production factors equally according to law, participate in market competition fairly, and be equally protected by law". The Third Plenary Session of the 18th CPC Central Committee opened a new stage of comprehensive deepening reform, clearly put forward "deepening economic system reform around making the market play a decisive role in resource allocation", and emphasized that "public ownership economy and non-public ownership economy are both important components of the socialist market economy and an important foundation for China’s economic and social development". The Fourth Plenary Session of the 18th CPC Central Committee proposed "to improve the property rights protection system with fairness as the core principle, strengthen the protection of property rights of economic organizations and natural persons of various ownership, and clean up the provisions of laws and regulations that violate fairness". The Fifth Plenary Session of the 18th CPC Central Committee emphasized "encouraging private enterprises to enter more fields according to law, introducing non-state-owned capital to participate in the reform of state-owned enterprises, and better stimulating the vitality and creativity of the non-public economy". The 19th National Congress of the Communist Party of China emphasized that "China’s socialist basic economic system and distribution system must be adhered to and improved", and wrote "Two Unswervings" into the basic strategy of adhering to and developing Socialism with Chinese characteristics in the new era, which was further determined as a major policy of the party and the country.The Fourth Plenary Session of the 19th CPC Central Committee further developed and deepened the connotation of the basic socialist economic system, with public ownership as the main body and multiple ownership economies developing together, distribution according to work as the main body and multiple modes of distribution coexisting, and the socialist market economic system as the basic socialist economic system. Ownership arrangement is very important in the basic economic system, which is an important basis for the establishment and perfection of the distribution system and the socialist market economic system; The distribution system is determined by the ownership arrangement, and the common development of multi-ownership economy is based on the coexistence of multiple distribution modes. The effective operation of both can not be separated from the guarantee of the socialist market economic system.

　　In the new era, the socialist basic economic system has been further improved, and the institutional advantages have become more prominent. General Secretary of the Supreme Leader has made many important speeches on the development of non-public economy and private enterprises, emphasizing "two unshakable" and "three unchanged", emphasizing that "private economy is an inherent element of China’s economic system, and private enterprises and private entrepreneurs are our own people", hoping that private enterprises can develop boldly with confidence. Private economy is not only an important achievement of the development of socialist market economy, but also an important force to promote the development of socialist market economy. Domestically, the private economy has contributed more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovations, more than 80% of urban employment and more than 90% of enterprises. Internationally, private economy has become China’s largest foreign trade subject. In the first three quarters of this year, the import and export of private enterprises in China was 13.65 trillion yuan, accounting for 48.2% of China’s total foreign trade value. We unswervingly consolidate and develop the public sector of the economy, unswervingly encourage, support and guide the development of the non-public sector of the economy, stimulate the vitality of various market players, and promote the common development of all sectors of the economy. The public sector of the economy and the non-public sector of the economy complement each other and complement each other; Adhere to the combination of distribution according to work and distribution according to production factors, and promote the gradual deepening of the reform of the distribution system, which not only promotes the improvement of efficiency, but also allows people to better share the fruits of reform and development; Combine efficient market with promising government,The socialist market economic system is more perfect. This has greatly changed the face of China’s economic and social development, and created institutional conditions and laid a solid material foundation for solidly promoting common prosperity.

　　Promoting common prosperity by adhering to the basic economic system

　　At present, we have embarked on a new journey of building a socialist modern country in an all-round way. In his important speech at the celebration of the centenary of the founding of the Communist Party of China (CPC), General Secretary of the Supreme Leader stressed that in the new journey, it is necessary to "promote the all-round development of human beings and make more obvious substantive progress for the common prosperity of all people". Achieving common prosperity is the essential requirement of socialism and the unswerving goal of our party. The socialist basic economic system is in a fundamental and decisive position in the economic system. To achieve common prosperity, we must adhere to and improve the socialist basic economic system, transform the advantages of the basic economic system into the remarkable efficiency of economic governance, and support the private economy to play a greater role in the journey of common prosperity in the new era.

　　Encourage hard work and innovation to get rich, and improve the balance, coordination and inclusiveness of development. Happy life is a struggle, and common prosperity depends on hard work and wisdom, and it must be down-to-earth and long-term. It is necessary to promote common prosperity in high-quality development and divide cakes on the basis of constantly expanding cakes. China’s socialist basic economic system is not only conducive to stimulating the vitality of various market players, liberating and developing social productive forces, but also conducive to promoting the organic unity of efficiency and fairness and continuously achieving common prosperity. We must adhere to and improve the basic socialist economic system, resolutely implement the "two unwavering" and treat all kinds of market players equally; Give full play to the decisive role of the market in resource allocation and better play the role of the government. Supporting the development of private enterprises is the consistent policy of the CPC Central Committee. The private economy, especially the "overwhelming" small and micro enterprises and individual industrial and commercial households, has made important contributions to promoting employment, ensuring and improving people’s livelihood. It is necessary to create a good development environment for the private economy, and help private enterprises solve problems from the aspects of market access, business environment, tax reduction and fee reduction, technological innovation and financial services, so as to promote the better development of private enterprises and provide strong momentum for high-quality development.

　　Promote the formation of an olive-shaped distribution structure with a big middle and small two ends. We will further deepen the reform of the income distribution system, build basic institutional arrangements for the coordination of primary distribution, redistribution and tertiary distribution, and expand the scale of middle-income groups in various ways. We will continue to deepen the market-oriented reform of factors, so that the values of labor, capital, land, knowledge, technology, management and data can be fully realized, so that the market can evaluate the contribution and determine the reward by the contribution, so that all kinds of factors can compete with generate in getting rich and creating wealth. Deepen the reform of the fiscal and taxation system, improve the fairness of redistribution, improve the social security system, smooth the upward flow channel, and form a development environment in which everyone participates. Encourage all kinds of social groups to voluntarily fulfill their social responsibilities, develop social charity, and give better play to the function of helping the poor and helping the poor in the third distribution. There are more than 100 million private economic entities in China, including more than 88 million individual industrial and commercial households, which drive the employment population to exceed 200 million. It is an important practitioner of "increasing the labor remuneration of workers, especially front-line workers, and increasing the proportion of labor remuneration in the initial distribution". In 2020, the tax paid by the private economy accounts for 60% of the national tax revenue, which has become an important support for stabilizing the national tax revenue and an important force for improving the redistribution adjustment mechanism. Supporting the development of private economy is helpful to form an olive distribution structure with big middle and small two ends. Private enterprises should actively embrace common prosperity and seize the opportunity of this era.

　　Get rich first and then get rich, and promote common prosperity step by step. Achieving common prosperity is a dynamic development process, which cannot be achieved overnight or go hand in hand. At present, the problem of insufficient development imbalance in China is still outstanding. We should fully estimate the long-term, arduous and complex nature of common prosperity, follow the laws of economic and social development, promote common prosperity in stages, achieve classified guidance and precise policies, and explore effective paths through reform and demonstration. Focus on encouraging rich leaders who work hard, operate legally and dare to start businesses, and support the first rich to drive the later rich. By the end of 2020, nearly 130,000 private enterprises had participated in the precise poverty alleviation campaign of "10,000 enterprises helping 10,000 villages", helping nearly 140,000 poor villages, with more than 110 billion yuan invested in industry and more than 16 billion yuan invested in public welfare, driving and benefiting more than 18 million poor people who set up files and set up cards, forming a vivid practice of getting rich first and then getting rich. It is necessary to encourage private enterprises to actively participate in rural revitalization and modern agricultural construction, promote the implementation of regional coordinated development strategies, tap market opportunities and play a greater role in safeguarding and improving people’s livelihood, and promote less developed areas to better share development results.

　　Further stimulate entrepreneurship, continue to grow bigger and divide the cake. Facing the future, the vast number of entrepreneurs should constantly improve themselves in patriotism, innovation, honesty, social responsibility and international vision, persist in doing good, and make due contributions to solidly promoting common prosperity. Draw wisdom and nutrients from Chinese excellent traditional culture, and implement "giving consideration to justice and benefit" in the whole process of enterprise management. The government is the maker of market rules and the defender of market fairness. We should continue to build pro-Qing political and business relations, provide more high-quality public services, improve a unified, open and competitive market system, support entrepreneurs with long-term plans, persevere in running a permanent business, take root in the China market and deepen the China market.

　　People’s Daily (November 04, 2021, 09 edition)