Guangming Daily forwarded one article published in Liaoning Daily a few days ago. The author is Yu Miaojie, a deputy to the National People’s Congress, a fellow of the International Economics Association, Deputy Secretary of the CPC Committee and President of Liaoning University. The following is the full text of the article.
During his inspection tour in Liaoning Province, General Secretary Xi Jinping noted that for the overall revitalization of Northeast China, reform and opening up play a key role. Under the background of profound changes in the global political and economic structure, China has been continuously conducting deeper reforms and a higher level of opening up, providing a strong impetus for building a new development paradigm. To promote the comprehensive revitalization of Liaoning, it is important to focus on problems, highlight key issues and solve difficulties. By conducting reform and opening up, the vitality of the whole society on innovation can be fully stimulated, which is conductive to achieve high-quality economic development and promote all-round social progress.
Persist in reform and innovation to promote the development of new quality productive forces
The Central Committee of the Communist Party of China’s Decision on Further Comprehensively Deepening Reform and Promoting Chinese Modernization adopted at the Third Plenary Session of the 20th CPC Central Committee noted that Chinese modernization has been continuously advancing in the reform and opening up and it will certainly enjoy a bright future. This fully embodies the relationship between reform and opening up and Chinese modernization.
The key in reform and innovation lies in cultivating and developing new quality productive forces. General Secretary Xi Jinping pointed out that the new quality productive forces was generated from the revolutionary breakthroughs of technologies, the innovative allocation of production factors and the deep transformation and upgrading of industries. The basis is the upgrading of laborers, labor materials, labor objects and their optimized combinations. The core symbol is the substantial improvement of total factor productivity. Its feature is innovation and the key is high quality. So, fundamentally it is about advanced productivity. To cultivate and develop new quality productive forces, the first thing is to promote technological revolutionary breakthroughs. The core in this process lies in innovation, including the original innovation from scratch and the continuous evolution from ‘1 to N’. Different enterprises have different roles and emphases in these two types of innovation. It is more critical for giant enterprises or large scientific research institutions to carry out original innovation. Promoting technological improvement is the most effective way for each enterprise to enhance its productivity and competitiveness. Second, it is vital to promote the innovative allocation of production factors. Factors of production cover capital, talents, land, data, etc. It is important to standardize the development of all kinds of capital, improve the quality of human resources, optimize land use, establish and improve the data governance system, creatively allocate factors of production according to local conditions, invest limited resources in the field of new quality productive forces that can create the most value so as to comprehensively promote the development momentum of new quality productive forces Third, it is vital to promote the deep transformation and upgrading of industries. It is important to cultivate and expand a new generation of strategic emerging industries such as information technology, artificial intelligence, aerospace, new energies, new materials, high-end equipment, biomedicine and quantum technology, focusing on low-altitude economy and green development to promote industrial chain extension and complement to effectively enhance product value.
Promote the coordinated development of productive forces and production relations. Productive forces determine production relations, which are counterproductive to productive forces. Good production relations can create a good institutional environment and resource guarantee for the development of productive forces, which in turn promotes the transformation and improvement of production relations, thus forming a virtuous circle. To promote the development of new quality productive forces, it is important to encourage more social capital to enter key areas, continuously expand foreign capital market access and stimulate market vitality. It is important to make full use of the government investment funds, encourage the development of patient capital and public offering of fund capital, collect idle social funds to invest in potential industries and projects through market mechanisms. By doing so, it will bring a positive effect on providing stable financial support for enterprises and promoting long-term R&D and innovation. It is also essential to continuously improve the business environment and enhance the development momentum. Measures such as simplifying the administrative examination and approval process, strengthening the protection of intellectual property rights and improving the market credit system can be implemented to create a fair, transparent and efficient market environment for enterprises. With these efforts, the innovation vitality and investment enthusiasm of enterprises will be greatly stimulated and the enterprises in Liaoning will be assured to develop their businesses.
Insist on opening up to the outside world and build a new paradigm of dual-circulation opening
‘Openness is a defining feature of Chinese modernization.’ General Secretary Xi Jinping noted that as we open wider to the outside world, cadres at all levels should improve their ability of thinking, making decisions and carrying out their work. Promoting reform and development through opening up is an important magic weapon for Chinese modernization to continuously achieve new achievements. It is important to apply the new development paradigm fully and faithfully on all fronts.
Accelerate the building of a new pattern of comprehensive opening up. First of all, promote wider opening up, which includes not only commodity trade dominated by manufacturing, but also service trade, digital trade and green trade. Relying on the advantages of China’s big market, international cooperation will be promoted and mutual benefit and win-win results will be achieved. Second, promote the opening up in a wider scope. Important measures should be taken to diversify export destinations, expand import scale, actively introduce foreign capital, promote FDI enterprises to go global and conduct differentiated policies under the Belt and Road Initiative. Third, promote deeper opening up. It is vital to steadily expand institutional opening up, take the initiative to work in line with high standards, rules, regulations and management. Work should be done in promoting the reform of relevant domestic institutions and mechanisms in line with the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and other rules. It is important to create a business environment that meets international standards, further promote the liberalization and facilitation of trade and investment and form an institutional environment for the smooth flow of goods and factors where fair competition among business entities can be guaranteed.
Build a pacesetter for opening up. Northeast China is an important gateway for China to open to the north, playing an increasingly important role in strengthening regional cooperation in Northeast Asia and connecting domestic and international dual circulations. Liaoning should actively build a new frontier for opening up to the outside world and integrate into the new development paradigm. By seizing the opportunity of opening up to the north and east, Liaoning should participate in building of the BRI and expand new open space. It should also seize the opportunity of deepening the comprehensive strategic partnership of cooperation between China and Russia in the new era, open wider to the outside world and increase cooperation with Japan and South Korea. It is important to continuously deepen the reform on institutional mechanisms, take the lead in improving procurement trade methods and cross-border e-commerce rules, continuously reduce trade costs, break down trade barriers and promote regional trade cooperation. At the same time, Liaoning should make good use of China-Europe freight train services and promote cooperation with Japan, South Korea, Southeast Asia, the Middle East and other countries and regions.
Accelerate the development of a unified domestic market. It is vital to speed up the development of an efficient, standardized, fair competition and fully open unified market in China, which can provide strong support for comprehensively transforming China into a strong country and the national rejuvenation with Chinese modernization. It is important to ensure that all ownership economies use production factors equally in accordance with the law, participate in market competition fairly and enjoy equal legal protection. It is also important to complement advantages for different ownership economies, make state-owned enterprises bigger and stronger and develop the private economy. Measures should be taken to promote the rational and sufficient flow of talents in China, optimize the supply of talent policies, create a high-quality talent environment so that they can give full play to their potential. Work should also be done to promote the two-way, free and orderly flow of land elements between urban and rural areas and the development of digital government, innovation of the data trading system, market risk supervision of data elements and the safe and controllable data flow. It is important to optimize the layout of transportation network, strengthen the development of transportation infrastructure, optimize the logistics management process by using advanced technologies such as big data and Internet of Things to improve the quality and efficiency of transportation services. It is imperative to improve the commodity quality system, strengthen the management of the whole supply chain, the whole industrial chain and the whole product life cycle, improve the standards and measurement system and comprehensively improve the quality of consumer services. Meanwhile, it is vital to promote fair and unified market supervision, further standardize improper market competition and market intervention, accelerate the construction of a unified domestic market and promote high-quality economic development to lay a solid foundation for Chinese modernization.
(Author: Yu Miaojie, Deputy Secretary and President of the CPC Committee of Liaoning University, originally published in Liaoning Daily)
