The Socialist Market Economy
Hi! Welcome to “About China”. This year marks the 70th anniversary of the founding of the People’s Republic of China. In today’s program, we will talk about “the socialist market economy”.
A socialist market economy is an innovative concept, and building such an economy represents an innovative undertaking by the CPC in its effort to build a socialist country with Chinese characteristics. The 14th CPC National Congress in 1992 decided that the goal of China's economic reform was to build a socialist market economy. Over the past 20 years, China's socialist market economy has taken shape, though some challenges persist, including weak regulation, stunted production factor market development, lack of regulatory consistency, and insufficient competition.
New measures were proposed in the report to the 19th CPC National Congress to accelerate improving the socialist market economy. Economic reform must focus on improving the system of property rights and strengthening the role of the market in allocating factors of production, to ensure that property rights provide effective incentives for individuals to engage in economic activities, and to ensure free flow of factors, market-based pricing, and fair and orderly competition, which determines the survival of businesses. A negative list for market access will be introduced nationwide. Regulations and practices that impede the development of a unified market and fair competition will be reviewed and abolished. Specific measures will be rolled out to support the development of private businesses, and help inject new dynamism into the business sector.
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