Market will play ‘decisive’ role
Tourists stand beside a revolutionary statue in Tiananmen Square after the Communist Party of China Central Committee concluded its Third Plenum in Beijing on Tuesday. A long-anticipated comprehensive reform plan was outlined after the meeting. Photo: AFP
The Communist Party of China (CPC) pledged to let markets play a "decisive" role in resource allocation as it seeks to deepen reform to steer the economy to a more sustainable growth model, according to a reform blueprint for the next decade released on Tuesday.
The communiqué, issued upon the conclusion of the four-day Third Plenary Session of the 18th CPC Central Committee, also reaffirmed the dominant role of "public ownership," saying it will enhance the vitality, control and influence of the State-owned economy as it looks to advance diverse forms of ownership.
"The great breakthrough of the document is that it upgraded the role of the market," Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges (CCIEE) think tank, told the Global Times on Tuesday.
"It means that the intervention of the government in economic matters will be reduced and the government will shift toward a more public service-oriented government," Xu said.
China had struggled to define the role of the market even after it launched its reform and opening-up in 1978. Some questioned whether socialism could accommodate the market economy.
The country had defined markets as playing a "basic" role in allocating resources since 1992 when it decided to build a "socialist market economy."
"There was much debate on the decisive role of the market in the discussion draft, but the CPC managed to keep the updated definition of the market role in the final document," Jiang Yong, a research fellow with the Beijing-based National Strategic Research Center, told the Global Times on Tuesday.
"The document also emphasizes the role of the government and society in order to balance the different debating groups," Jiang said.
The core of economic reform is the proper relationship between government and market, the document said.
The plenum also set up a central leading team to comprehensively push reform. The team will be responsible for designing reform, arranging, coordinating and pushing forward reform as a whole, while supervising the implementation of reform plans.
Party committees at all levels are urged to fulfill their duties in leading reform, the document said.
"The team will not be led by the State Council but rather by the Party's central committee. The role of the Party to lead all types of work has been emphasized, showing the effort to push reform is bigger and the Party will have larger capability to spearhead reform," Jiang said.
The document also said China will aim to achieve decisive results in key areas of reform by 2020.
At the same time, Tuesday's communiqué said the country will stick to the dominant role of public ownership playing the leading role in the State-owned economy, while encouraging, supporting and guiding the non-public sector, enhancing its vitality and creativity.
"Both public and non-public sectors of the economy are important components of the socialist market economy and significant bases for economic and social development," the document said.
China should firmly solidify and develop its public-owned economy to maintain the leading role of the State-owned economy and continue to enhance vitality, control and influence of the State economy, it said.
"Although the document said both public and non-public sectors of the economy are important, it also emphasized the dominant role of the State-owned economy. It means that reduction in the power of State-owned enterprises is ruled out," Xu from CCIEE said.
"The policy seems to be contradictory to the one to allow markets to play a decisive role in allocating resources," Tian Yun, editor-in-chief of economic research website macrochina.com.cn, told the Global Times Tuesday.
"One solution is that China can change the form of the public-owned economy to allow the State to take the controlling stake in enterprises, while allowing private managers to manage the enterprises," Tian told the Global Times.
Tuesday's document also said land in cities and the countryside, which can be used for construction, will be pooled in one market.
Meanwhile, China will ease investment restrictions and accelerate construction of free trade zones (FTZ).
Yang Jingjie and Xinhua contributed to this story
Political reform vows repeated
By Yang Jingjie
Compared with the huge measures in economic reform, plans on political reform appear less prominent. But observers say the communiqué still gives a positive signal for pushing future political reform through its stress of the market's "decisive" role.
The Party once again highlighted the importance of political reform, while stressing the strengthening and improving of its leadership in the process of comprehensively deepening reform. The change of the government's role in the market economy is also highlighted.
Huang Weiping, director of the Contemporary Chinese Politics Research Institute at Shenzhen University, told the Global Times that the Party generally repeated its past vows in political reform, but emphasizing market reform will have a positive impact on political sectors.
"Reform in the market will drive the reform in the administrative system, which will further contain public power and reduce the space for rent-seeking by officials," Huang said, noting that the current focus of political reform is on the administrative system.
In the run-up to the plenum, analysts agreed that political reform will remain a major challenge.
The People's Daily on Friday published a full-page article suggesting that China wouldn't indiscriminately copy the Western system.
While stressing the Party's leadership in the reform, the communiqué also demanded the military "obey the Party's command."
Huang said it is not surprising as "the ultimate goal for reform is to consolidate the CPC's governance."
Independent courts and prosecuting bodies announced
By Liu Sha
Endeavors should be made to … ensure independence and fairness in prosecuting bodies and courts, as well as to improve judicial practice and protection of human rights, said the communiqué.
Analysts said that although emphasizing the independent judging rights of courts is nothing new, adding the phrase "human rights protection" into such an important Party document is a rare and brave move.
"It signaled that human rights would not only be addressed in paper by lawmakers, but in the next 10 years, instead of being put aside by courts, human rights-related cases are more likely to be handled via the normal judicial process," said Qin Qianhong, professor of Constitution studies at Wuhan University.
It might help those who fail to protect themselves in cases like demolitions, petition and re-education through labor, he said.
Feng Yujun, professor of law at the Remin University of China, said that the statement upholding the independence of prosecutors and courts reflected the direction of judicial reform, although it did not use the phrase "judicial independence."
The rumored plan that the Central government would directly finance local courts to ensure they are not bothered by their current patrons, the local governments, was not mentioned in the communiqué.
Military loyalty
By Yang Jingjie
The Party's goal is an army that "obeys the Party's command, is capable of winning battles and has a sound work style," said the communiqué.
The document urged deepening reform of military establishments, pushing forward army policy adjustments, while highlighting harmony between the army and civilians.
Li Jie, a military expert, told the Global Times that reform of the military establishment is expected to adapt to the current situation in global defense.
"Defense challenges have expanded from the land to the ocean, and even space and the cyber world, which are quite different from the traditional ones," Li said, noting that the Chinese military must adapt to the changes through reform.
Xinhua contributed to this story
State Security Committee to be established to face domestic, foreign threats
By Yang Jingjie
China will establish a State Security Committee to ensure national security, according to the communiqué.
The communiqué stressed the need for improving the public security system, and announced that the country will improve the national security system and national security strategy, as well as safeguarding national security.
The statement on establishing State Security Committee was raised in the passage deliberating on social governance and preventing social disputes. However, analysts believe the committee's mission is a more comprehensive one in tackling threats, both domestic and foreign, given the context of China's growing weight in the world.
Qu Xing, head of the China Institute of International Studies, told the Global Times that traditional and non-traditional threats from both home and abroad, such as terrorism, separatism and extremism, all pose great danger to China's national security.
"Therefore, we need a higher level authority to handle the threats, with a more powerful coordinating mechanism and better integration of resources," Qu told the Global Times.
Li Jie, a military expert, shared similar views, noting that the military, public security, foreign affairs, economic and oceanic affairs departments may be included in the committee, which may be similar to the US National Security Council.
The idea of setting up the committee came as tensions over territorial disputes grew between China and its neighbors, especially at sea, against the backdrop of US pivot to Asia.
If an unexpected maritime emergency takes place, the inter-department committee could make a comprehensive decision in the context of national strategy and both the domestic and foreign situation, Li said.
General goal
Improve socialism with Chinese characteristics, enhance modern governance.
Core of reform
Economic system to better handle market-government relations.
Schedule
To achieve decisive results in key sectors by 2020.
Highlights of reform plans
1. Government financing and taxation – balancing spending and duties
2. Judicial reform – ensuring independence of courts and prosecuting bodies
3. Equal rights of rural people – equal chance to benefit from urbanization and land sales
4. Deepening organizational reform in the military
5. Opening-up – Lowering bars for foreign investment and promoting free trade zones