In order to thoroughly study, publicize and implement the spirit of the 20th National Congress of the Party, and thoroughly understand the spirit of General Secretary Xi Jinping’s important speech, the Zuoquan County Public Security Bureau launched the “Series of Studies on the Spirit of the 20th National Congress of the Party” on the WeChat platform, focusing on the report of the 20th National Congress of the Party. We should actively publicize the spirit of the 20th National Congress of the Communist Party of China, create a strong learning atmosphere, unify the thoughts of party organizations at all levels of the county's public security organs, party members and cadres, and civilian auxiliary police officers to the spirit of the congress, effectively implement the spirit of the 20th National Congress of the Communist Party of China into the entire process and all aspects of public security work, and encourage the entire police force to use practical actions to forge ahead on a new journey and build a new era.
Liu He: Organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reform
The report of the 20th National Congress of the Communist Party of China proposed, "organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reform." This is a major strategic measure proposed by the Party Central Committee based on changes in the domestic and international development environment and the mission and tasks of the Communist Party of China in the new era and new journey. It is of great significance for effectively leveraging the economic advantages of a large country in the future period, accelerating the construction of a new development pattern, promoting high-quality development, and comprehensively building a modern socialist country. It is necessary to deeply understand the historical logic, era background and practical requirements of this decision-making and deployment, so as to promote the stability and long-term development of China's economy and reach a new level. 1. The historical logic and historical background of organically combining the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reform Supply and demand are two sides of the same coin, and the balance between the two is relative, while the imbalance is absolute. To solve the problem of imbalance between supply and demand, we need to identify the main contradiction and the main aspects of the contradiction, scientifically grasp the relationship between the two, put forward development ideas that adapt to the requirements of the times, and use new theory to guide new practice. (1) Implementing the strategy of expanding domestic demand is an effective way to respond to external shocks and stabilize economic operations. Total social demand consists of consumption demand, investment demand and export demand, of which consumption and investment are domestic demand and export is external demand. In 1998, the Asian financial crisis had a great impact on my country's economic development and foreign demand shrank sharply. The Party Central Committee proposed "based on expanding domestic demand and strengthening infrastructure construction", implemented a proactive fiscal policy, issued long-term construction treasury bonds, and continuously lowered benchmark interest rates. rate and so on, which stabilized the economic growth of . In 2008, in response to the impact of the international financial crisis, the Party Central Committee proposed "expanding domestic demand as the fundamental way to maintain growth" and introduced an package plan with a large-scale increase in government investment as the main content, which stabilized market expectations and enabled the economy to bottom out quickly. Since 2020, faced with the severe impact of the COVID-19 epidemic, General Secretary Xi Jinping has pointed out that "we must deepen reforms around expanding domestic demand and accelerate the cultivation of a complete domestic demand system." Our country has accelerated the implementation of major projects, actively stabilized household consumption and corporate investment, and maintained stable economic development. From a long-term perspective, global economic rebalancing is the logical main line of world economic evolution since the 2008 international financial crisis. China's insistence on implementing the strategy of expanding domestic demand has not only achieved its own economic stability and transformational development, but also made great contributions to the rebalancing and stable growth of the world economy. (2) Promoting supply-side structural reform is the fundamental strategy to achieve high-quality development. Since the 18th National Congress of the Communist Party of China, my country's economic development has entered a new normal, facing the complex situation of " three phases superimposed on ". The large-scale economic stimulus policy in the early stage will inevitably produce overcapacity , debt Due to problems such as service accumulation and rising costs, the supply-side factors affecting long-term development such as population, labor force, technology, and total factor productivity have undergone profound changes. The main contradiction in economic operation has changed from insufficient aggregate demand to the supply structure not adapting to changes in the demand structure. The main aspect of the contradiction has shifted to the supply side.In 2015, the Party Central Committee proposed the implementation of supply-side structural reforms, clarifying the five key tasks of cutting overcapacity, destocking, de-leveraging, reducing costs, and strengthening weak links. By vigorously promoting "breaking, establishing, and reducing", the imbalance of the supply and demand structure was corrected and the trend of deflation was curbed, which not only boosted my country's economic growth, but also promoted global economic recovery. In 2018, the Party Central Committee further proposed the eight-character policy of "consolidating, strengthening, improving, and smoothing" the structural reform of the supply side, requiring more reform methods to be adopted, using market-oriented and legal means, focusing on enhancing the vitality of micro entities, improving the level of the industrial chain, and promoting the adjustment and optimization of deep-seated relationships between finance and the real economy, real estate and the real economy. By continuing to deepen supply-side structural reforms, the quality and efficiency of my country's supply system have been significantly improved, new development drivers have accelerated, and the quality of economic development has continued to improve. (3) Organically combining the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform is a long-term strategy to actively respond to changes in the domestic and international environment and enhance development initiative. Currently, major changes in the world that have not been seen in a century are accelerating. The epidemic of the century has far-reaching impact, the world economic recovery is sluggish, and inflation levels remain high. Major developed economies have significantly adjusted their macro policies , and international demand may fluctuate and shrink further. The global industrial division of labor system and regional layout are undergoing extensive and profound adjustments. The stability of the supply of energy resources and other resources has declined. The original supply and demand cycle of the global economy has been disrupted or even blocked. In particular, some countries ignore the norms of international relations and economic and trade rules and try to exert extreme pressure by decoupling, cutting off links, suppressing enterprises, etc., hindering my country's economic development and structural upgrading, and causing a major impact on the global balance of supply and demand. From a domestic perspective, our country's economy has recently been facing triple pressures of demand contraction, supply shocks, and weakening expectations. Risk factors have increased in some areas. The aging of the population has accelerated, traditional advantages such as labor and land have weakened, and resource and environmental constraints have tightened. scientific and technological innovation capabilities are not yet strong, and the improvement of total factor productivity has been restricted. There is an urgent need to work from both ends of supply and demand to not only expand effective demand, but also promote the reform and adjustment of production functions, and create new competitive advantages. In response to this new situation, since 2020, the Party Central Committee has proposed to accelerate the construction of a new development pattern with the domestic cycle as the main body and domestic and international dual cycles promoting each other, and firmly place the basis of development on the basis of its own strength. This requires us to make overall plans to expand domestic demand and optimize supply, give full play to the advantages of the ultra-large market, improve the adaptability of the supply system to domestic demand, open up stuck points in the economic cycle, promote the positive interaction of supply and demand, and inject new impetus into the world economy while achieving high-quality development. (4) Organically combining the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform is a practical requirement for comprehensively building a modern socialist country. The report of the 20th National Congress of the Communist Party of China clearly stated that from now on, the central task of the Communist Party of China is to unite and lead the people of all ethnic groups in the country to comprehensively build a powerful modern socialist country, achieve the second centenary goal, and comprehensively promote the great rejuvenation of the Chinese nation with Chinese-style modernization. This gives new historical characteristics and practical requirements for the organic combination of the two. Our country has built a moderately prosperous society in all respects. In most areas, the question of "have it or not" has been basically solved, while the question of "good or bad" has become more prominent. The main contradiction in our society needs to be solved through high-quality development. Chinese-style modernization not only has the common characteristics of the modernization of all countries, but also has Chinese characteristics based on its own national conditions. It must follow the essential requirements of Chinese-style modernization and comprehensively promote the great rejuvenation of the Chinese nation with Chinese-style modernization. We must firmly grasp development, the party's top priority in governing and rejuvenating the country, fully, accurately and comprehensively implement the new development concept, effectively leverage the advantages of the ultra-large market, implement the strategy of expanding domestic demand, deepen supply-side structural reform, promote the effective improvement of the economy and reasonable growth of quantity, better meet the people's growing needs for a better life, and continuously promote and expand Chinese-style modernization. 2. Major principles that need to be grasped to organically combine the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform Expanding domestic demand and deepening supply-side structural reform are both strategic measures. In the process of promoting the organic integration of the two, the following major issues must be grasped. (1) To promote the organic combination of the two, we must adhere to the theme of promoting high-quality development. The transition from a high-speed growth stage to a high-quality development stage is a basic feature of my country’s economic development in the new era. High-quality development is development that solves the problem of unbalanced and inadequate development and embodies new development concepts. In accordance with the requirements of high-quality development, expanded domestic demand must be effective demand, meet the personalized, diversified, and constantly upgrading needs of the people, be investment with reasonable returns, consumption with income to rely on, capital and debt constraints, and sustainable demand. Fiscal and monetary policies must be taken when effective demand is insufficient and market expectations are unstable, and policies must be implemented in a timely, appropriate and precise manner, and cannot be flooded. To deepen the supply-side structural reform, we must focus on improving the quality and efficiency of the supply system and improving the adaptability of the supply structure to effective demand. We must not form backward production capacity and products that are not in line with the development direction and market demand, resulting in a waste of social resources and wealth. To organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reform is to unify the two to the requirements of high-quality development, and release the new huge potential of the organic combination of the two while promoting innovative, coordinated, green, open, and shared development, and coordinating development and security; in accelerating In the rapid construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles mutually reinforcing each other, a new strategic direction of organic combination of the two is formed to promote effective demand and effective supply, consumption and investment, domestic demand and external demand, self-reliance and self-reliance and open cooperation, benign interaction and high-level dynamic balance. (2) To promote the organic integration of the two, we must adhere to deepening the supply-side structural reform as the main line. Economic development is ultimately driven by supply. In the long run, supply creates demand. Development never ends, and neither does supply-side quality improvement and structural upgrading. At present and in the future, factors restricting my country's economic development exist on both sides of supply and demand. However, the main aspect of the contradiction is on the supply side, which is manifested in the existence of stuck points, blockages, and vulnerabilities in supply, and the inability of the supply structure to adapt to changes in the demand structure. Adhering to the main line of deepening supply-side structural reform means giving full play to the role of innovation as the primary driving force, continuing to promote technological innovation and institutional innovation, striving to break through supply constraints, and meeting and creating demand with independent, controllable, high-quality and effective supply. First, in areas where there is a high degree of external dependence, where it is difficult to find external sources of replacement in the short term, and where the supply of and may be cut off, it is necessary to speed up efforts to make up for the shortcomings. Second, in areas where demand is not effectively met, such as high-quality branded goods, high-quality and diversified lifestyle services such as child care and elderly care, health culture, high-end producer services such as R&D and design, accounting and auditing, and green ecological products, we must deepen reform and expand opening up, and optimize the supply structure as soon as possible. The third is to adapt to the new round of scientific and technological revolution and the general trend of industrial transformation, promote the development of new industries, new technologies, new products, and new business formats, create new demands with new supplies, and form an inexhaustible driving force for economic development. (3) To promote the organic combination of the two, we must insist on giving full play to the advantages of the ultra-large market. Our country has a population of more than 1.4 billion and a middle-income group of more than 400 million. It is moving towards the ranks of high-income countries. The income and consumption levels of residents continue to increase, and new industrialization and urbanization continue to advance. It is the most potential large-scale market in the world. my country has the largest and most complete manufacturing system in the world. The output of more than 220 industrial products ranks first in the world. It occupies a pivotal position in the global industrial division of labor system and supply chain system. It has strong supply capabilities to support domestic and international dual cycles. The scope of the market determines the breadth and depth of division of labor. The market is the scarcest resource in the world.The ultra-large-scale domestic market brings significant advantages in economies of scale, innovation and development, and impact resistance to my country's economic development. To insist on firmly grasping the strategic basis of expanding domestic demand is to make full use of the precious strategic resource of the ultra-large-scale market, create long-term and stable good development expectations for market entities, promote common prosperity in high-quality development, expand the middle-income group, enhance the market's willingness and ability to make independent expenditures, and use domestic demand to expand scale and structural upgrades to drive and generate high-quality supply. (4) To promote the organic combination of the two, we must adhere to the general tone of seeking progress while maintaining stability. Seeking progress while maintaining stability is an important principle of state governance and a methodology for doing economic work well. "Stability" is the main tone and the fundamentals. It is necessary to stabilize the overall macroeconomic situation, stabilize the integrity of industrial and supply chains, and stabilize the supply of energy and other primary products, laying the foundation for proactive progress and strengthening the confidence to cope with complex situations and various challenges; "advance" means being proactive and making a difference, and taking greater steps to deepen reforms, optimize the allocation of factors, and promote structural adjustment. We must adhere to the direction of socialist market economic reform and deepen reform from both supply and demand ends. On the one hand, supply structure adjustment is essentially a reform issue. We must make efforts in optimizing the development environment, breaking monopolies, promoting market-oriented allocation of factors, and building a unified national market. We must break down institutional obstacles that restrict self-adjustment on the supply side, protect and stimulate the vitality of micro entities, and promote supply structure adjustment. On the other hand, we must strengthen demand-side management, promote high-quality and full employment, improve the distribution system, improve the social security system, deepen the reform of the investment and financing system, fully release consumption and investment demand, and make the construction of a super-large-scale market a sustainable historical process. General Secretary Xi Jinping emphasized, "Strategically, we must persist in seeking progress while maintaining stability, do a good job in top-level design, grasp the rhythm and intensity, and achieve success in the long term. Tactically, we must do practical things, pay attention to actual results, work step by step, and fight one battle after another." Promoting the organic combination of the two requires us to combine the long and short term, act steadily, and not only make long-term strategic plans, but also implement various specific deployments. (5) To promote the organic combination of the two, we must adhere to the system concept and bottom-line thinking . System concepts and bottom-line thinking are the scientific thinking methods and working methods included in Xi Jinping’s thought on socialism with Chinese characteristics for a new era. Under the conditions of modern market economy, the national economy is a complete and continuous whole in terms of time and space, and a complex system that is interconnected and constantly moving. To analyze and solve economic problems, we must adhere to the systematic concept, look at problems comprehensively, connectedly, and dynamically, and avoid one-sided, fragmented, and static metaphysical viewpoints. Demand and supply are both theoretical abstractions of the economic operating process and important concepts for analyzing and solving economic problems. However, the actual economic operation is a continuous cycle process of production, distribution, circulation, and consumption. Economic policies must be designed with an overall view and overall view, so as to achieve an organic combination of expanding domestic demand and deepening supply-side structural reform, smoothing the national economic cycle, and improving the quality, motivation, and vitality of development. Facing the complex and severe development environment, we must coordinate development and security, strengthen bottom-line thinking and extreme thinking, make good first moves, take the initiative, and effectively prevent various risks and challenges. 3. The main task of organically combining the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform The next five years are a critical period for the start of the comprehensive construction of a modern socialist country. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we insist on focusing on economic construction, insist on deepening reform and opening up, find the organic combination point between implementing the strategy of expanding domestic demand and deepening supply-side structural reform, implement policies systematically, effectively and accurately, accelerate the construction of a new development pattern, enhance the endogenous power and reliability of the domestic cycle, and improve the quality and level of the international cycle. (1) Focus on promoting mutual promotion of domestic and international dual cycles. my country’s ultra-large-scale market advantage can not only stabilize and expand the basic domestic circulation, but also leverage and drive international circulation. It is necessary to effectively tap the potential of domestic demand, build a unified national market, and remove various obstacles that hinder domestic circulation. Particular attention must be paid to achieving a medium level of recycling under extreme circumstances. We must adhere to a high level of opening up to the outside world, give full play to the role of opening up in expanding circulation space, deeply participate in global industrial division of labor and cooperation, maintain a diverse and stable international economic structure and economic and trade relations, and interact positively with the outside world. Continue to expand openness to the flow of goods and factors, attract global capital, technology, talent and other high-quality factors and products, and break the external containment and suppression of our country. It is necessary to give full play to my country's strong industrial supporting capabilities and international leadership in some industries, actively participate in promoting the optimized layout of global and regional industrial and supply chains, and establish closer economic ties. It is necessary to steadily expand institutional opening up such as rules, regulations, management, and standards, and on the premise of coordinating openness and security, further align with international high-standard economic and trade rules, create a market-oriented, legal, and international first-class business environment, implement the free trade pilot zone improvement strategy, consolidate and expand multilateral economic and trade relations, and improve the quality and level of trade and investment cooperation. (2) Focus on maintaining macroeconomic stability. There will be cyclical fluctuations in economic operations, but ups and downs must be avoided. In a relatively long historical period, maintaining macroeconomic stability and sustained growth plays an important and fundamental role in building a modern socialist country in an all-round way. It is necessary to strengthen and improve macroeconomic regulation and control, and do a good job in cross-cyclical design and countercyclical adjustment of macroeconomic policies. It is necessary to strengthen expectation management , improve macro-policy transparency, credibility and professionalism, and strive to stay ahead of the market curve. It is necessary to give full play to the strategic guiding role of the national development plan, strengthen the coordination of fiscal policy and monetary policy, focus on expanding domestic demand, enhance the fundamental role of consumption in economic development and the key role of investment in optimizing the supply structure, and continue to release the huge consumption and investment potential contained in modernization. (3) Focus on enhancing the vitality of microscopic entities. The structural change that China's economy is undergoing is a complex process of market-oriented exploration and trial and error. Its resilience has been enhanced and its efficiency has been improved. It is necessary to promote entrepreneurial spirit and stimulate corporate vitality and creativity. It is necessary to uphold and improve the basic socialist economic system, deepen the reform of state-owned assets and state-owned enterprises, accelerate the optimization and structural adjustment of the state-owned economy, and enhance the core competitiveness of enterprises. Optimize the development environment of HTML private enterprises and promote the development and growth of the HTML private economy. It is necessary to build a high-standard market system and improve basic market economy systems such as property rights protection, market access, fair competition, and social credit. It is necessary to improve the modern enterprise system with Chinese characteristics and accelerate the construction of world-class enterprises. It is necessary to set up "traffic lights" for capital and regulate and guide the healthy development of capital in accordance with the law. (4) Focus on improving total factor productivity. Total factor productivity is the overall efficiency of converting factor input into output. It determines the degree of economic development and potential growth rate. It is essentially the quality of factors such as technology and talents and the efficiency of resource allocation. We must adhere to the priority development of education, self-reliance in science and technology, and talent leadership, strengthen national strategic science and technology strength, strengthen the construction of basic science and technology capabilities, and resolutely win the battle against key core technologies. It is necessary to improve the quality of education and accelerate the construction of world-class universities and competitive disciplines with Chinese characteristics. It is necessary to improve the strategic layout of talents, strive to cultivate top innovative talents, and form a comparative advantage in international competition for talents. It is necessary to strengthen the dominant position of enterprises in scientific and technological innovation and support the development of specialized, specialized and innovative enterprises. In response to new mid- and long-term trends in population change, we will optimize our population development strategy and establish a fertility support policy system. In response to the urgent demand for financial structural restructuring, we should deepen the reform of the financial system, improve the functions of the capital market, and increase the proportion of direct financing. (5) Focus on improving the resilience and safety level of the industrial chain and supply chain. In the face of certain countries’ attempts to decouple and cut off my country’s links, we must speed up the filling of shortcomings in areas related to safe development, especially the outstanding shortcomings such as basic software, core hardware, and basic raw materials, improve independent intellectual property rights and substitution capabilities, and ensure the stability and smoothness of the industrial and supply chains. We must insist on focusing our economic development on the real economy, consolidate the leading position of advantageous industries, promote the high-end, intelligent and green development of manufacturing, build a new system of high-quality and efficient service industry, accelerate the development of digital economy , and build a number of new growth engines. The global industrial and supply chains are important international public goods. We are willing to work with other countries to maintain the security and stability of the global industrial and supply chains. (6) Focus on promoting urban-rural integration and coordinated regional development. The process of modernization will inevitably be accompanied by profound adjustments to the urban and rural regional structure and huge changes in the land and space pattern. This is a process of releasing huge demand and creating huge supply. It is necessary to thoroughly implement the regional coordinated development strategy, regional major strategies, the construction of main functional areas, and the new urbanization strategy, optimize the layout of major productive forces, and build a regional economic layout and land and space system that complements each other's advantages and develops with high quality. It is necessary to build a coordinated development pattern of large, medium and small cities based on urban agglomerations and metropolitan areas, comply with the objective laws of economic development, and promote the concentration of various factors in advantageous areas. It is necessary to coordinate the layout of rural infrastructure and public services to build a beautiful countryside that is livable, suitable for industry, and beautiful. It is necessary to speed up the establishment of a housing system that is supplied by multiple entities, guaranteed through multiple channels, and supports both renting and purchasing. (7) Focus on preventing and resolving systemic risks. The root cause of major risks in the economic and financial fields lies in the serious imbalance and misalignment between supply and demand and poor circulation. Preventing and defusing risks is an organic combination of the strategy of expanding domestic demand and supply-side structural reform. Preventing and resolving risks requires treating both the symptoms and the root causes. It is necessary to strengthen macro-control, especially demand-side management, seize major risk points to increase liquidity injection and expectation management, and properly handle the relationship between preventing systemic risks and moral hazard. At the same time, it is necessary to promote supply-side structural reform, accelerate the transformation of development methods, improve governance capabilities, optimize the functions of the financial system, improve the efficiency of capital and resource allocation, promote a virtuous cycle of science and technology, industry, and finance, achieve a higher level of supply and demand balance, and base the prevention and resolution of systemic risks on strong and healthy economic fundamentals. Source: "People's Daily"
