Jia Kang: Overcome "Imbalance and Inadequate" with Supply side Reform

09:26, February 28, 2018      Author: Jia Kang    ( zero ) +1

   Article/Jia Kang of China Economic 50 People Forum

   The connotation of the main social contradictions in the new era clearly focuses on the key issue of "imbalance and inadequacy" of development. Therefore, if we want to grasp the main line of the modernization strategy as a whole, we must follow the supply side structural reform to optimize the structure to resolve contradictions.

 Jia Kang: Overcome "Imbalance and Inadequate" with Supply side Reform Jia Kang: Overcome "Imbalance and Inadequate" with Supply side Reform

In the report of the 19th National Congress of the Communist Party of China, General Secretary Xi Jinping elaborated on the new judgment of China's position of the times and major social contradictions, which has become the strategic understanding basis and key points of the design guidance strategy for the grand cause of modernization with deepening the supply side structural reform as the main line.

   1、 "New era": a new judgment of historical position in keeping with the times

The report of the 19th National Congress clearly pointed out that "after long-term efforts, socialism with Chinese characteristics has entered a new era, which is a new historical orientation for China's development". This major political judgment is that the Communist Party of China has led the people through nearly a hundred years of struggle, so that the Chinese nation, which has suffered a lot since modern times, has ushered in a pioneering and historic leap from standing up, becoming rich, to becoming strong. In this new historical position, we are closer, more confident and able than ever to realize the goal of the Chinese Dream of the great rejuvenation of the Chinese nation.

This new judgment on the new era, new historical position and historical starting point also corresponds to the establishment of Xi Jinping's thought of socialism with Chinese characteristics for a new era and the systematic design of its basic strategy. Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, the latest achievement of the sinicization of Marxism and the crystallization of the practical experience and collective wisdom of the Party and the people, will serve as a guide to action for the whole Party and the whole people to strive for the great rejuvenation of the Chinese nation.

   2、 "Unbalance and inadequacy": a new judgment and analysis of China's social contradictions

After the reform and opening up, the Sixth Plenary Session of the Eleventh Central Committee expressed the main contradiction of our society as "the contradiction between the people's growing material and cultural needs and the backward social production", which has been used for 36 years. Based on the new historical position of entering the "new era", the report of the 19th National Congress clearly put forward the new judgment that "the main social contradiction in China has been transformed into the contradiction between the people's growing needs for a better life and unbalanced and inadequate development". This major judgment plays a fundamental role in guiding and guiding the overall situation for us to continue to promote socialist modernization in the new era.

Generally speaking, the purpose of socialist production is to meet the growing material and cultural life needs of the people to the maximum extent, that is, to liberate the productive forces to form effective supply to constantly meet social needs. The understanding of the main social contradictions formed at the Sixth Plenary Session of the Eleventh Central Committee grasped the "unity of opposites" relationship between supply and demand, and guided us to firmly promote the "three-step" modernization strategy centering on economic construction. The new judgment on socialist contradictions formed at the 19th National Congress of the Communist Party of China, on the basis of continuing the unity of opposites between demand and supply, conforms to the new era, and clearly changes the original expression to a more comprehensive and more general demand side "people's growing needs for a better life", and at the same time, describes the problems existing in the supply side's response to demand as "unbalanced and inadequate development"

"Adequate" or not is a concept that is more inclined to describe the total quantity in dynamic change, while "balanced" or not is a concept that is more inclined to describe the quality in dynamic change and directly refers to the structural state. In the original statement, the problem of inadequacy has been pointed out by "backward social production", while in the new statement, the problem of inadequacy is added with a more critical "imbalance", which is the main aspect of the contradiction that must be firmly grasped in the development of "quality first, benefit first" that we must pursue in the new era. Therefore, the "building a modern economic system" proposed in the report of the 19th National Congress of the Communist Party of China is in line with the idea of supply side structural reform repeatedly emphasized before.

   3、 Supply side structural reform: the main line to resolve major social contradictions

The connotation of the main social contradictions in the new era clearly focuses on the key issue of "imbalance and inadequacy" of development. Therefore, if we want to grasp the main line of the modernization strategy as a whole, we must follow the supply side structural reform to optimize the structure to resolve contradictions.

After nearly 40 years of rapid development after the reform and opening up, China has made a series of achievements, but also faces a complex situation of accumulated contradictions and hidden dangers, which is mainly reflected in various structural imbalances. In order to keep pace with the times and break through the bottleneck period of modernization, namely, the critical breakthrough period, we must focus on improving the quality and efficiency of supply side reform and supply system under the "goal orientation" and "problem orientation", and resolve the potential threat of "social contradictions and problems intertwined" In terms of income distribution structure, humanistic and ecological structure, the problem of "imbalance and insufficiency" was effectively overcome.

In the past, the macro "demand management" focused more on the total amount problem, while the "supply management" that must be emphasized now focuses more on the structural optimization problem. The supply side structural reform promoted according to the "main line" is actually the institutional supply innovation with reform as the core and modernization as the main axis to overcome difficulties, as well as the systematic engineering innovation with institutional innovation to open up the huge potential space for scientific and technological innovation, management innovation, form the power system, and transform and upgrade the supply system. It will focus on "total factor productivity" To support China's modernization process, we should continue to achieve extraordinary development on the path of "catching up - catching up", so that in the dynamic process of resolving major social contradictions, we can achieve the goal of building a moderately prosperous society in all respects by 2020, Later, it will further connect with the basic realization of socialist modernization in 2035 and the building of a strong, prosperous, democratic, civilized, harmonious and beautiful modern socialist power by the middle of this century. In short, deepening the supply side structural reform is the main line of economic development that we strive to resolve major social contradictions and strive for the Chinese Dream.

(The author of this article introduces: member of the National Committee of the Chinese People's Political Consultative Conference and researcher of the Chinese Academy of Financial Sciences.)

Editor in charge: Jia Yunhang SF174

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