Give full play to the advantages of basic economic system and build a new development pattern

　　In October, 2020, the Fifth Plenary Session of the 19th CPC Central Committee took "accelerating the construction of a new development pattern with the domestic macro-cycle as the main body and the domestic and international dual-cycle promoting each other" as one of the guiding principles and main goals of China’s economic and social development during the 14th Five-Year Plan period. The socialist basic economic system is a great creation of the party and the people. At present, to accelerate the construction of a new development pattern, we must adhere to and improve the basic socialist economic system, and further transform institutional advantages into governance efficiency to promote high-quality economic development.

　　First, the socialist basic economic system is an important institutional basis for building a new development pattern.. General Secretary of the Supreme Leader pointed out that "to build a new development pattern, we have significant institutional advantages and a solid foundation for reform". This remarkable institutional advantage mainly comes from the socialist basic economic system such as public ownership as the main body, the common development of various ownership economies, distribution according to work as the main body, the coexistence of various distribution methods, and the socialist market economic system.

　　First, adhering to public ownership as the main body and the common development of diversified ownership economies means fully mobilizing social resources in the form of ownership that adapts to the development level of productive forces, encouraging cooperation and competition among diversified ownership economies, promoting the public ownership economy to deepen reform, adjust and optimize its layout, improve its realization forms, and continuously enhance its competitiveness, innovation, control, influence and ability to resist risks. Secondly, distribution according to work is the main body and various modes of distribution coexist, which is based on protecting the income of workers and encouraging them to get rich through hard work, and fully stimulates the market vitality of production factors such as labor, capital, technology and management through a reasonable mechanism in which contributions are evaluated by the market and rewards are determined according to contributions. Third, the socialist market economic system not only emphasizes the decisive role of the market in resource allocation, but also enables various resource elements to be efficiently allocated through the unique selection mechanism and incentive function of the market; It also emphasizes giving full play to the role of the government and effectively preventing market failure and polarization, highlighting the overall pattern of dual regulation between the market and the government. These three aspects of the socialist basic economic system complement each other and are unified in the great practice of Socialism with Chinese characteristics’s economy.

　　The socialist basic economic system is not only conducive to stimulating the vitality of various market players, liberating and developing social productive forces, but also conducive to promoting the organic unity of efficiency and fairness, and constantly achieving common prosperity, showing the remarkable advantages of the Socialism with Chinese characteristics system. To speed up the construction of a new development pattern, it is inherently required to adhere to and improve the basic socialist economic system and stimulate new vitality of economic development with institutional advantages.

　　Second, the historic achievements of reform and development highlight the remarkable advantages of the socialist basic economic system.. Since the founding of New China, China has developed from "poor and white" to the second largest economy in the world, creating a miracle of rapid economic development that is rare in the world. Behind this miracle, it is a strong guarantee for the continuous consolidation and improvement of the socialist basic economic system, and it is a constant manifestation of the advantages of the socialist basic economic system.

　　In the early days of the founding of New China, China established an independent and relatively complete industrial system and national economic system, which fundamentally solved the problem of "starting from scratch" in industrialization. However, due to the relatively closed development mode of domestic circulation, China’s economic development is generally lagging behind. Since the reform and opening up, China has realized the transformation from a planned economy system to a socialist market economy system. With the gradual establishment of a foreign-related economic and trade management system and the deepening of reform and opening up, China has established a mutually beneficial and cooperative linkage development relationship with the world, and its economic development has achieved sustained and rapid growth characterized by its active participation in the international cycle. Since the outbreak of the global financial crisis in 2008, the kinetic energy of the international grand cycle has obviously weakened, and China’s economy has continued to transform into a growth model dominated by domestic consumption demand, and the vitality of the domestic grand cycle has become increasingly strong. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee has comprehensively deepened the reform of the economic system, adhered to the structural reform of the supply side internally, accelerated the transformation of the mode and adjusted the structure, and accelerated the formation of the situation with the domestic big cycle as the main body; We will build an economic corridor across the East, West and North, and strive to cultivate new advantages in international cooperation and competition. The situation of mutual promotion of domestic and international double circulation has made steady progress, laying a solid foundation for promoting China’s high-quality economic development.

　　In the historical process of reform and development, the basic role of the socialist basic economic system has been constantly highlighted, especially in the process of integrating into the international economic cycle. While accelerating its own development, China has actively participated in global economic governance and promoted economic globalization in a more open, inclusive, inclusive, balanced and win-win direction, which has made important contributions to world economic development.

　　Third, adhere to and improve the basic socialist economic system in building a new development pattern.. Since 2020, the COVID-19 epidemic has spread all over the world, and the global industrial chain and supply chain have been greatly impacted. The tide of "anti-globalization" has surged, and the economic situation is complicated and severe. China’s "14th Five-Year Plan" timely puts forward major strategic arrangements to accelerate the formation of a new development pattern, which points out the direction for achieving higher quality, more efficient, fairer, more sustainable and safer development and stimulating world economic recovery and growth.

　　With the change of factor endowments in China’s external environment and economic development, the growth of domestic demand and the deep development of domestic market have become the main driving forces for China’s sustained economic growth. To build a new development pattern, we must persist in improving the basic socialist economic system, organically combine the implementation of the strategy of expanding domestic demand with deepening the structural reform of the supply side, and form a higher level dynamic balance in which demand pulls supply and supply creates demand; Adhere to the "two unswerving", speed up the layout optimization and structural adjustment of the state-owned economy, promote the healthy development of the non-public economy, and realize the complementarity, mutual promotion and common development of various ownership systems; Persist in further improving the income distribution system, attach importance to the leading role of the market in the initial distribution and the regulatory role of the government in redistribution, and coordinate the income between urban and rural areas, regions and social groups by means of national budget, transfer payment, social insurance and welfare, and continuously promote shared development; Adhere to the domestic macro-cycle, build a new open economic system at a higher level, give full play to comparative advantages, attract global resource elements with the domestic macro-cycle, make full use of domestic and international resources, and promote the coordinated development of domestic demand and external demand, import and export, and introduce foreign capital and foreign investment.

　　To build a new development pattern, only by adhering to and perfecting the socialist basic economic system, being good at using institutional advantages to cope with the impact of risk challenges and transforming institutional advantages into governance efficiency can we foster opportunities in the crisis, create new opportunities in the changing situation, and promote China’s economic stability and far-reaching.

　　(Author: Socialism with Chinese characteristics Thought Research Center of New Era, Supreme Leader of Hunan University of Science and Technology, School of Marxism, Hunan University of Science and Technology)