Follow Vanuatu Investment Immigration and Vanuatu News: On December 21, 2013, the Ambassador to Vanuatu, Xie Bohua, published a signed article in The Independent titled "China Outlines a Grand Blueprint for Comprehensively Deepening Reform."
The article introduces the main content and significant implications of the "Decision on Major Issues Concerning Comprehensively Deepening Reform" adopted at the Third Plenary Session of the 18th Central Committee of the Communist Party of China. The full text is as follows:
The Third Plenary Session of the 18th Central Committee of the Communist Party of China (18th CPC Central Committee) was held in Beijing from November 9 to 12. The grand blueprint for comprehensively deepening reform adopted at the session has attracted global attention.
The Communist Party of China has a tradition of introducing major policies at the Third Plenary Session. The Third Plenary Session of the 11th Central Committee in 1978 formulated the reform and opening-up policy, ending decades of isolation, bringing earth-shaking changes to China, and making China the world's second-largest economy. So, what does this Third Plenary Session mean for China? Why do international analysts call it "China's new historical starting point"?
Goals and Tasks of Reform
The 18th CPC Central Committee determined a comprehensive reform covering economic, political, cultural, social, ecological, and national defense aspects, which has been hailed as the "boldest reform" since 1978. The overall goal of the reform is to improve and develop the system of socialism with Chinese characteristics and to modernize the national governance system and governance capacity.
The central document drafting group extensively solicited opinions over nearly seven months. The final plan identified 55 reform tasks and 300 major measures across 15 important areas. For example, the session decided to increase farmers' land rights and interests, relax the family planning policy, abolish the re-education-through-labor system, allow private capital to establish small and medium-sized banks, allow non-state capital to participate in state-owned capital investment projects, increase the proportion of state-owned capital gains turned over to the state to ensure and improve people's livelihoods, further streamline administration and delegate power, ensure the independent exercise of judicial and procuratorial powers in accordance with the law, explore the establishment of intellectual property courts, strengthen innovation in anti-corruption systems and mechanisms and institutional guarantees, and open up restrictions on household registration in small and medium-sized cities, among others.
Economic Structural Reform Plays a Leading Role
Economic structural reform accounts for nearly half of all reform tasks and plays a leading role in reforms in other areas. Among them, the most notable is changing the role of the market in resource allocation from a "basic role" to a "decisive role." Since China decided to establish a "socialist market economy" in 1992, the role of the market has been defined as "basic."
The new statement marks a shift in the relationship between the market and the government. The government is determined to optimize governance and reduce intervention in the market by reducing administrative approvals and delegating power. Economists predict that the change in the market's status will greatly unleash development potential and provide China with 20 years of development momentum, enabling China to jump out of the "middle-income trap." Determining the "decisive role" of the market in resource allocation is conducive to China's economic transition from export-driven to consumption-driven, which is a huge opportunity for the world economy, which is currently experiencing sluggish growth. The emerging Chinese consumer market will be the world's largest development dividend of this century, and both global manufacturing and service industries will benefit from it. It is predicted that in the next five years alone, China's imports are expected to reach $10 trillion, outbound investment will reach $500 billion, and the number of outbound tourists will exceed 400 million. Vanuatu should occupy a corresponding share.
Challenges Faced
Having a blueprint alone does not guarantee success; turning ambitious reform plans into reality will be a true test for China's leadership. Resistance to reform may come from two aspects: one is people's rigid ideology, and the other is the constraints of the vested interest pattern, with the latter likely being more stubborn. For example, increasing farmers' land property income will affect local government fiscal revenue. The marketization of deposit interest rates is another tough nut to crack. Once implemented, it will be a significant shock to state-owned commercial banks because these banks will no longer be able to obtain excessive profits from the spread between high loan interest rates and low deposit interest rates. Therefore, for comprehensive reforms aimed at breaking through the shackles of ideology, breaking through the barriers of solidified interests, eliminating the drawbacks of systems and mechanisms, and enhancing social equity and well-being, one or two departments are not enough to promote them. How to resolve resistance and face challenges will test the wisdom and courage of the contemporary Chinese leadership collective.
Strong Political Will and Clear Timetable
China has never underestimated the challenges and is well aware that reform has entered deep water. China's leadership collective has shown courage and determination in the face of huge challenges. The CPC Central Committee has established a leading group for comprehensively deepening reform as the command center for reform. In China, leading groups report to the Political Bureau of the Central Committee and help formulate and implement policy measures, holding a pivotal position. Currently, the composition of the leading group has not been announced, but it will help overcome bureaucracy that hinders reform. In addition, the Third Plenary Session also clarified the timetable for reform, determined to achieve decisive results in important areas and key links by 2020. This shows that the process of reform is verifiable.
Combining "Top-Level Design" with "Crossing the River by Feeling the Stones"
The successful practice of reform and opening-up has allowed China to gain important experience. China's reform model is described as "crossing the river by feeling the stones," which means promoting successful experiences gained in one region to the whole country. This statement was first proposed by Comrade Chen Yun and became a household name in China with the support of China's "chief architect of reform," Comrade Deng Xiaoping. However, sometimes adjusting the interest pattern will be resisted. When local reforms cannot be advanced, top-level design and support from the central government become particularly necessary. If practice proves that a certain reform is beneficial to the country and the people but faces resistance from the vested interest pattern, the central government will carry out top-level design to provide strong support for the reform.
35 years ago, the Third Plenary Session of the 11th Central Committee allowed China to perform the most magnificent economic development miracle in contemporary history. This Third Plenary Session of the 18th Central Committee will also surely bring China decades of golden development and pave the way for the Chinese nation to realize the "Chinese Dream" of great rejuvenation.