By Li Wei, DRC

2018-2-9

The 2018 National Work Conference on Policy Consultation sponsored by the Development Research Center of the State Council (DRC) opened on February 8, 2018 in Nanning.

Li Wei, President of DRC, made a report entitled “Strive for High-Quality Research Results in Policy Consultation Work in the New Era”. At the conference, Li Wei communicated the important instructions on policy consultation work made by leading members of the CPC Central Committee and the State Council, gave a briefing on the work of DRC in 2017 and introduced the major tasks of DRC in 2018. With regard to DRC’s research work on policy consultation in 2018, he touched upon the following eight issues.

1.The current and future global economic performance.

In 2017, the global economy witnessed a downturn performance at the beginning of the year and realized a robust growth beyond expectations at the end of the year. The global economy enjoyed an overall growth with major economies in the world registered a sound performance for the first time since the outburst of international financial crisis in 2008. The Chinese economy continued to play the role of ballast and stabilizer of world economic growth, contributing about one third to global economic growth. The world growth rate is expected to gain further momentum in 2018. However, the global economic recovery is also facing many risks and uncertainties meriting our close attention. In face of the great readjustment and changes in the international economic pattern, the 19th CPC National Congress proposed to advance opening up across the board and promote the building of a community with shared future for mankind. The year of 2018 will be an important year for the realization of relevant goals.

2.An overall judgment on domestic macroeconomic performance.

In 2017, the economic operation in China showed a positive trend of macro-based stabilization and micro-backed improvement. The economic growth became stabilized, the economic structure realized positive transformation, the economic growth drivers experienced smooth transformation, the platform for mid-to-high growth was basically established, and economy took a turn for high-quality development. At present, China is experiencing a crucial period in building a moderately prosperous society in all respects and will join the ranks of high-income countries. Looking ahead to 2018, China’s economy will continue to maintain a stable mid-to-high growth with a steady growth speed, more employment opportunities, stable prices and increased benefits and create more favorable conditions for promoting high-quality development.

3.New deployment for realizing modernization.

The 19th CPC National Congress put forward the two-stage deployment for realizing modernization. The new deployment has made it possible to fulfill the goal of realizing basic modernization 15 years earlier ahead of schedule. The goal is grand and inspiring, and it can be achieved through hard efforts. To achieve these goals, we will face the following challenges. In the future, as the world population will continue to grow, China’s development will be more constrained by resources and environment than ever before. As the development enters the new era, China’s future modernization will face more complicated factors to be balanced. In this context, we need to study how to establish a new development mode with new development concept as our guidance, making it different from China’s development mode in the past during the high growth period and different from that of the developed countries during their rapid modernization period. It will enable us to facilitate China’s high-quality development and the realization of the “two centenary goals”.

4.The supporting role of innovation in boosting high-quality development.

The report of the 19th CPC National Congress pointed out that innovation is the primary motive force for economic development and a strategic pillar for building a modern economic system. To promote high-quality development and improve the quality of supply system, the key lies in innovation. We need to improve the original innovation ability and enhance technological supply at source for industrial upgrading and quality improvement. We need to expedite the transformation of technological achievements, promote deep integration of technology with economy as well as the integration of real economy with new technologies including Internet, big data and artificial intelligence. In addition, we need also to accelerate the development of new growth drivers.

5.The smooth and sound development of the real estate market.

The housing system reform is an inevitable requirement for the changes in the real estate market after China’s economic and social development entered the new era. In 2018, we need to focus on our research on the following three issues. First, based on the policy of laying equal stress on rental housing and housing sales, we need to study how to flesh out housing market system; second, guided by the model of diverse supply, we need to study how to promote the adjustment and optimization of housing supply structure; third, we need to study how to improve the housing guarantee system through multiple channels and in light of national conditions.

6.Some issues relating to supply-side structural reform.

The Central Economic Work Conference held at the end of last year set down the guidelines on deepening supply-side structural reform in 2018. We need to follow these guidelines and focus on deepening market-oriented reform on the allocation of key elements and make efforts to root out ineffective supply, cultivate new drivers for development and reduce the costs of real economy, especially the institutional transaction costs.

7.The implementation of rural revitalization strategy.

The report of the 19th CPC National Congress came up with rural revitalization strategy. It is the latest achievement of the theoretical innovation relating to agriculture, rural areas and farmers and also the general line to guide the work of agriculture, rural areas and farmers in building socialism with Chinese characteristics in the new era. Therefore, from 2018 to 2020, we need to abide by the series of reform measures and pilot experience laid down and gained since the 18th CPC National Congress. We should not be complacent and conservative and follow the beaten track; instead, we must overcome all obstacles and make innovations to truly improve the system of integrating urban and rural development and remove obstacles impeding the implementation of policy measures relating to agriculture, rural areas and farmers. We need to further set up a framework and system for the implementation of rural revitalization strategy. In the field of agricultural and rural reforms, we need to further enhance our awareness and realize the concept of allowing the market to play a decisive role in resource allocation.

8.The realization of common prosperity.

Common prosperity is mankind’s common desire for a better life for thousands of years and is also the ideal goal pursued by country governance. After 40 years of reform and opening up, there’s a substantial increase in the income level, with the income gap among residents in China starting to narrow, and the people’s sense of gain has been significantly enhanced. In the late stage of industrialization and the period of post-industrialization, we need to reform and improve the income distribution system and create a fairer and more just environment for economic and social development based on fairness and efficiency. The report of the 19th CPC National Congress has set the realization of common prosperity as the mid-to-long-term goal of the Party for the country’s development. How to carry out all the strategies in a down-to-earth manner requires both theoretical innovation of the inherent law of economic and social development in the new era and also in-depth policy research. The former can provide theoretical support for the realization of common prosperity, and the latter is needed to offer forward-looking and feasible policy recommendations to promote common prosperity.