Source: Guangming Daily

According to the report of 19th CPC National Congress, we must uphold and improve the system of socialism with Chinese characteristics, and continue to modernize the governance system and governance capacity. We must have the determination to eradicate all outdated ideological mindset and all institutional ailments, and overcome the barriers of entrenched interests. We should draw on the achievements of other civilizations, develop a well-developed, scientific, procedure-based, and effective framework to fully reflect the superiority of China’s socialist system. Guangming Daily has invited three representatives and experts to talk about the historical achievements made in comprehensively deepening reform in the past five years, and to discuss how to resolutely eliminate all outdated ideological mindset and all institutional ailments, and give advice on how to advance the modernization of China’s governance system and governance capacity.

1. Host: China has made historical achievements in comprehensively deepening reform in the past five years. What are the major breakthroughs? What sense of gain did people get from the comprehensive deepening of the reform?

Chi Fulin: The Chinese government has increased efforts in reform, and significant progress and even major breakthroughs have been obtained in a multiple of aspects over the past five years. The establishment of the Leading Group for Deepening Reform Comprehensively, is an important measure to push forward reform by developing a well-developed, scientific, procedure-based, and effective framework. Over the past five years, the socialist system with Chinese characteristics has become more sophisticated, and the modernization level of China’s governance system and governance capacity has been improved obviously. In the field of economic reform, market-oriented reform has made substantial progress, control over lending rates of financial institutions has been completely lifted, the ceiling of bank deposit interest rates has been removed, and the deposit insurance system has been introduced; corresponding documents for health, health care, education, pension and other areas have been released, and the pace of social capital flowing into these areas has accelerated significantly. In addition, further progress has been made in simplification of administrative procedures and delegation of powers to lower levels, and reforms to streamline administration, delegate powers, and improve regulation and services have made substantial progress. Institutional reforms in the business sector have been deepening constantly. The registration system reform of “integration of five certificates into one business license with a unified credit code” has been advanced. An oversight model of random inspection and public release has been fully implemented, and the vitality of development and capacity of innovation has been significantly enhanced. In terms of market access for foreign investors, the management model of the negative list for foreign investment continues to advance.

2. Host: How do you see the current situation and tasks faced by China’s reform?

Chi Fulin: The report of 19th CPC National Congress makes a new judgement on the principal contradiction facing China in the new era. It requires that we devote great energy to addressing development’s imbalances and inadequacies, through deepening reform in all areas and breaking the constraints of institutional mechanisms for development. For example, for large gaps in incomes, we should expand the size of the middle-income group, increase income for people with low incomes, adjust excessive incomes, and prohibit illicit income. We should expand the size and proportion of middle-income groups by reversing the structural imbalance of the real economy; give farmers more property rights and increase the income of farmers’ property; improve the property rights protection system and the level of rule of law, and stabilize the expectations on systems of the middle-income group. At present, the reform of the property rights system should be carried out in parallel with the expansion of the middle-income group. The incentive mechanism conducive to entrepreneurial innovation and entrepreneurship must be developed as soon as possible, to protect entrepreneurs’ property rights and innovation revenue, according to law.

3. How to eliminate all outdated ideological mindset and all institutional ailments, and develop a well-developed, scientific, procedure-based and effective framework?

Chi Fulin: Whether we can break through the blockades of entrenched interests and gradually have a reasonable interest structure and social structure, are major problems faced by the current comprehensive deepening reform, and play a decisive role for the success of reform. We must unswervingly implement the new development concept, and exercise it throughout the whole process of economic, political, cultural, social, and ecological construction. We should ensure problem-oriented deepening reform and pursue reform in a more systematic, holistic, and coordinated way. For example, with the upgrading of the consumption structure, urban and rural residents’ demand for service-oriented consumption grows fast, which requires relaxing control over market access in the service sector and further opening up the service sector, with breaking monopolies as the key.

(The author is President of China Institute for Reform and Development (Hainan) and a member of the Academic Committee of Shanghai Academy)