At the recently held Central Economic Work Conference, General Secretary Xi Jinping summarized and refined our party's understanding of the regularity of economic work, pointing out the need to coordinate the five important relationships of effective market and proactive government, total supply and demand, cultivating new and updating old driving forces, optimizing increment and revitalizing stock, improving quality and expanding total volume, providing scientific guidance for comprehensively promoting Chinese style modernization with high-quality development.
We must deeply recognize that we must balance the relationship between an efficient market and a capable government, which is the key to forming an economic order that is both "flexible" and "manageable"; It is necessary to coordinate the relationship between total supply and total demand, which is an important foundation for smooth circulation of the national economy; It is necessary to coordinate the relationship between cultivating new driving forces and updating old ones, which is an inherent requirement for developing new quality productive forces according to local conditions; It is necessary to coordinate the relationship between optimizing increment and revitalizing stock, which is the only way to comprehensively improve the efficiency of resource allocation; We must make a good overall plan to improve the quality and increase the total amount, which is an inevitable requirement to consolidate the material foundation of Chinese path to modernization.
Our country's economy is currently at a critical stage of high-quality development. The more we climb hills and overcome difficulties, the more we must respect the laws of development, master scientific methods, and improve our work initiative. We must deeply grasp and apply the five 'must coordinate' principles, and effectively implement the laws of economic development in the new era into all aspects and the entire process of economic work.
Here, taking the relationship between overall supply and demand as an example, we will analyze and deepen our understanding.
China has the world's largest and most comprehensive manufacturing system, with over 220 out of 500 major industrial products ranking first in the world in terms of output. The strong supply capacity not only supports the steady growth of China's foreign trade, but also maintains the world's largest international market share for goods exports for 15 consecutive years. It continuously creates effective demand through high-quality supply, providing a continuous source of power support for economic growth.
Supply creates demand. Focusing on improving the quality and efficiency of the supply system can create and stimulate new demand. Taking the new energy vehicle industry as an example, it took 6 years from an annual output of over 10000 vehicles to the first annual output exceeding one million vehicles. In just six years, China's new energy vehicle industry has achieved a leap from producing one million to ten million vehicles annually. Since July, retail sales of new energy passenger vehicles have begun to surpass those of gasoline vehicles. The reason why new energy vehicles can win market favor and achieve lane changing overtaking is twofold: on the one hand, they continuously improve their quality through technological innovation, and on the other hand, they meet the expectations of the people for a high-quality life.
The core of deepening supply side structural reform is to promote industrial innovation through technological innovation. This Central Economic Work Conference has made important arrangements around leading the development of new quality productive forces with technological innovation, and proposed to carry out large-scale application demonstration actions for new technologies, new products, and new scenarios. Looking towards the future, creating new consumer demand with high-quality supply and promoting the upgrading of consumer quality will surely achieve a virtuous cycle and collaborative efforts.
Demand drives supply. In recent years, the Central Committee of the Communist Party of China has coordinated the expansion of domestic demand and the deepening of supply side structural reform, firmly grasping the strategic basis of expanding domestic demand, and promoting a smoother domestic circulation and more efficient connection between domestic and foreign markets. Especially since the beginning of this year, the "dual" and "two new" policies have continued to exert force, continuously unleashing consumption potential and driving investment growth. The policy of exchanging old for new consumer goods has driven the overall sales of related products to exceed 1 trillion yuan. From January to October, the national fixed assets investment increased by 3.4% year on year. Among them, infrastructure investment increased by 4.3% year-on-year, 0.2 percentage points faster than the previous 9 months; Manufacturing investment increased by 9.3%, accelerating by 0.1 percentage points from the previous 9 months.
The Central Economic Work Conference has deployed the key tasks for next year, with the top priority being "vigorously boosting consumption, improving investment efficiency, and expanding domestic demand in all aspects". This reflects the efficient coordination of total supply and total demand, and the profound application of economic laws. Implementing the special action to boost consumption, intensifying the implementation of the "two new" policies, and providing greater support for "two new" projects, these policy measures are both based on the present and long-term, and will effectively stimulate domestic demand potential, consolidate and expand the domestic circulation, and better promote the domestic and international dual circulation.
At present, China's economic operation is facing many difficulties and challenges, with insufficient domestic demand and external demand being adversely affected by the increasing instability and uncertainty of the international situation. We must deeply recognize that expanding domestic demand is not only related to economic stability, but also to economic security. It is not a stopgap measure, but a strategic move. In this context, it is particularly urgent and important to coordinate the relationship between total supply and total demand.
Practice has taught us that to achieve a virtuous cycle of the national economy, we must adhere to the coordinated efforts and dynamic balance between supply and demand. On the one hand, we need to grasp the supply side and continue to deepen the structural reform of the supply side, with progress, retreat, and pressure, to enhance the adaptability and balance between supply and demand. On the other hand, we need to focus on the demand side, accelerate the filling of domestic demand, especially the consumption gap, and make domestic demand the driving force and stable anchor for economic growth.
Only by following the rules can we achieve better work effectiveness and results. The five 'must be coordinated' are important regular understandings for doing a good job in economic work, and must be firmly grasped.
Deeply understand the regularity of economic work
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