The situation and tasks faced by my country’s economic system reform﹡

(October 14, 2003)

（1) The importance and urgency of deepening economic system reform. Since the Third Plenary Session of the 11th Central Committee of the Communist Party of China started reform and opening up, the 14th National Congress of the Communist Party of China set the goal of reforming the socialist market economic system, and the Third Plenary Session of the 14th Central Committee of the Communist Party of China made relevant decisions, my country's economic system reform has made significant progress in theory and practice. The socialist market economic system has been initially established, the basic economic system has been established with public ownership as the mainstay and multiple ownership economies developing together, and an all-round, wide-ranging, and multi-level opening-up pattern has basically been formed. The continuous deepening of reform has greatly promoted the improvement of social productivity, comprehensive national strength and people's living standards, allowing our country to withstand severe tests such as international economic and financial turmoil, severe domestic natural disasters and major epidemics. At the same time, there are also problems such as irrational economic structure, unresolved distribution relations, slow income growth of farmers, prominent employment conflicts, increasing pressure on resources and environment, and weak overall economic competitiveness. The important reason is that our country is in the primary stage of socialism, the economic system is not yet perfect, and the development of productivity still faces many institutional obstacles. In order to adapt to the international environment in which economic globalization and scientific and technological progress are accelerating, and to adapt to the new situation of building a moderately prosperous society in an all-round way, we must accelerate reforms, further liberate and develop productive forces, and inject strong impetus into economic development and overall social progress.

（2) The goals and tasks of improving the socialist market economic system. In accordance with the requirements of coordinating urban and rural development, coordinating regional development, coordinating economic and social development, coordinating the harmonious development of man and nature, coordinating domestic development and opening up to the outside world, we should give full play to the fundamental role of the market in resource allocation to a greater extent, enhance the vitality and competitiveness of enterprises, improve national macro-control, improve government social management and public service functions, and provide strong institutional guarantees for the comprehensive construction of a moderately prosperous society. The main tasks are: to improve the basic economic system with public ownership as the main body and the common development of multiple ownership economies; to establish a system that is conducive to the gradual change of the urban-rural dual economic structure; to form a mechanism to promote the coordinated development of regional economies; to build a unified, open, competitive and orderly modern market system; to improve the macro-control system, administrative management system and economic and legal system; to improve employment, income distribution and social security systems; to establish a mechanism to promote sustainable economic and social development.

（3) The guiding ideology and principles for deepening the reform of the economic system. Based on Deng Xiaoping Theory and"Three Represents"As a guide, we must implement the party’s basic line, basic program, and basic experience, fully implement the spirit of the 16th National Congress of the Communist Party of China, emancipate our minds, seek truth from facts, and keep pace with the times. Adhere to the reform direction of the socialist market economy and focus on system construction and system innovation. We must persist in respecting the initiative of the masses and give full play to the initiative of both the central and local governments. Persist in correctly handling the relationship between reform, development and stability, and advance reform in a focused and step-by-step manner. Adhere to overall planning and coordination of various interests in the reform process. Adhere to people-oriented, establish a comprehensive, coordinated and sustainable development concept, and promote the all-round development of the economy, society and people. (End)

﹡This is the first part of the "Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Improvement of the Socialist Market Economic System".