Deepening research on the basic socialist economic system (Academic Roundtable)

In a recent interview, General Secretary Xi Jinping discussed the pivotal role of China’s fundamental economic system within the framework of socialism with Chinese characteristics. He underscored that this system is essential for the socialist market economy, anchored by key principles such as dominant public ownership and the fostering of mixed ownership economies. Xi highlighted that labor-based distribution is the primary method, which is complemented by various other distribution methods, and emphasized the need for a well-functioning socialist market economy.

This is a crucial time for China’s economic development, where Xi’s comments point to the economic system’s decisive influence on shaping relations and maintaining its socialist essence. He stressed the importance of upholding and refining this system by reinforcing public ownership while also nurturing non-public ownership sectors. The goals set during the Third Plenary Session aim to achieve a high-level socialist market economy by 2035, focusing on leveraging market mechanisms for efficient resource allocation and enhancing government roles.

Since the inception of New China, significant advancements have been made in transforming production relationships and improving the livelihoods of the people through a socialist economy. The Communist Party has continually deepened its understanding of this system as it evolves to meet the country’s specific context and conditions, recognizing the dual significance of public ownership and diverse forms of economic activity.

Xi elaborated on the interaction between the three core elements—public ownership, labor-based distribution, and the socialist market economy—insisting on the interdependence that has emerged from their mutual support. He argued that this system has not only proven effective in practice but has also laid a solid foundation for economic governance, showcasing distinct advantages in both promoting growth and ensuring equity.

Importantly, Xi’s focus on harmonizing economic efficiency with social equity reflects the party’s commitment to balanced resource allocation. He indicated that there should be further exploration of the interconnections within this economic framework to refine policies that encourage high-quality development, ensuring that the system adapts to the realities of global markets while meeting domestic demands.

As China crafts its unique narrative around the socialist basic economic system, it aims not only to fuel national growth but also to contribute to a broader understanding of diverse economic systems worldwide. This ongoing exploration and application of the socialist economic model are intended to bolster internal capabilities and stimulate innovation, paving the way for modern governance and coordinated development across various sectors.