LIN Shangli: the Core of Reforms Lies in Liberating Productivity and Enhancing Social Vitality

The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) is about to convene, attracting worldwide attention. Lin Shangli, President of Renmin University of China and Dean of the National Academy of Development and Strategy, pointed out that the current reforms are centered around high-quality development and high-level opening-up. These reforms require more vibrant and creative development, thus placing higher demands on grassroots and various sectors. He noted that the core of the reforms lies in 'liberating productivity and enhancing social vitality.' If the Third Plenary Session of the 18th Central Committee resolved the decisive role of the market in resource allocation, the new quality productive forces in the current development relies on innovation. Only by truly unleashing innovation can the reforms progress step by step.

Since the Third Plenary Session of the 11th Central Committee in 1978, China's development has consistently followed the path of reform and opening-up. Over the past 40-plus years, each Third Plenary Session has advanced China's development in different layers and fields.

"The iconic themes of the Third Plenary Sessions have always revolved around reform", Lin Shangli said in an exclusive interview with Ta Kung Pao. "So far, there have been two Third Plenary Sessions that have inaugurated new eras. The first was the Third Plenary Session of the 11th Central Committee, which opened a new historical period we call the 'new period.' The second was the Third Plenary Session of the 18th Central Committee, which initiated the new era of socialism with Chinese characteristics. I believe that this Third Plenary Session will start a new process of Chinese-style modernization and will be of historical significance".

Lin, a think tank member who has participated in drafting several important Party reports, emphasized that Chinese-style modernization is a key historical journey to realizing the great rejuvenation of the Chinese nation. By 2035, China aims to basically achieve modernization, and by 2050, to become a fully modernized powerful country. This has been the dream of the Chinese people for over a century. To realize this dream, there must be high-quality development, more vibrant, and more creative development.

I. Development Relies on the Liberation of “Two Forces”

Lin Shangli believes that the current core of reform revolves around two types of liberation. The first is the liberation and development of productive forces, which involves fully unleashing new productive forces to impact overall economic and social development, and constructing production relations and governance forms that align with the development of these new productive forces. The second is the liberation and enhancement of social vitality, which is closely tied to economic issues such as social equity, justice, and livelihood security.

"China's development up to this point has relied on these 'two forces'—productive forces and social vitality. It is through the liberation of these 'two forces' that China has maintained continuous, stable, and effective development", Lin Shangli continued. He explained, "Where do these 'two forces' come from? They come from ongoing reforms. It is through institutional innovation unleashed by reform that the various institutional obstacles faced by these 'two forces' are resolved and eliminated. China's reforms have an inherent logic. The basic approach emphasized and implemented in central documents is to carry on China's reforms to the end. This mission and theme are not only tasks of the new era but also embody consistent principles and ideals".

II. Expected to Address Four Aspects

Focusing on the liberation of the two forces, Lin Shangli elaborated that the upcoming Third Plenary Session of the 20th Central Committee is expected to address the following four issues:

Firstly, innovation. Addressing the issue of China's development and innovation capability is crucial. Without innovation capability, reforms cannot effectively implement the strategy of revitalizing the nation through science and education. Without successfully implementing this strategy, high-quality development cannot be guaranteed. The report of the 20th National Congress of the CPC particularly emphasizes the importance of this strategy, which involves reforms in the scientific and technological system, the talent system, and the education system. Innovation is central to high-quality development and to the new quality productive forces. 'If reforms cannot solve the problem of innovation, they cannot address the critical issues, so this is a clear judgment,' Lin stated.

Secondly, the market. The market needs to be dynamic and integrated, linking domestic and international markets. The rationale for allowing the market to play a decisive role in resource allocation is also clear. With the vitality of innovation and the dynamism of the market, the nation is bound to prosper. The report of the 20th National Congress outlines the direction for subsequent market reforms.

Thirdly, governance. It is essential to maintain national governance and development, and ensure livelihood security within an orderly framework, thus sustaining the Chinese governance model. Governance should promote development and pursue efficiency and quality. Reforms must further standardize issues such as fairness and justice, and employment.

Fourthly, people's well-being. This includes issues related to food, clothing, housing, transportation, medical security, urban-rural integration, rural revitalization, education, and employment. These are crucial tasks in China's reform and opening-up process.

"Through exploration and sacrifices, we have finally found the path of socialism with Chinese characteristics. The greatest awareness behind this is the full recognition that China's development must seek new momentum through continuous transformation, expanding new spaces, creating new systems and mechanisms, and seizing new development opportunities. Therefore, reform and opening-up is the essential code for the path of socialism with Chinese characteristics", Lin concluded.

III. Embracing Greater Bay Area Development, Hong Kong to Participate in National Ascent

Discussing the future development prospects of Hong Kong within the broader context of the country's reform and opening-up, Lin Shangli emphasized that integrating into the national strategy is Hong Kong's greatest opportunity and strategic space. The mainland not only offers a vast market but also abundant talent, and the entire national strategy provides Hong Kong with immense international opportunities and a global stage.

Lin believes that the construction of the Guangdong-Hong Kong-Macao Greater Bay Area presents a significant strategic initiative for Hong Kong to integrate into the national strategy. Many countries have achieved national development leaps through the construction and development of bay areas. Therefore, in this context, as Hong Kong integrates into the Greater Bay Area, it will also participate in the historical process of the nation's rise.

Hong Kong continues to hold two irreplaceable unique advantages: firstly, its high degree of internationalization and adherence to international rules, giving it a unique edge in global participation; secondly, its strengths in finance and talent aggregation. Additionally, Hong Kong serves as a crucial bridge for cultural exchange between China and the West. "These advantages will not diminish with time; as long as Hong Kong develops, these advantages will grow stronger. Both the nation's development and the construction of the Greater Bay Area need these advantages".

Looking ahead to Hong Kong's future development, Lin emphasized that Hong Kong has vast potential. In a sense, areas like the Lok Ma Chau Loop and Shenzhen serve as both a support and a hinterland for Hong Kong’s development. Everything depends on how Hong Kong positions itself within the national development strategy to form a grand vision for its growth.

IV. Promoting Institutional Opening and Better Integration with the Global Market

"Entering the new era, to adapt to new circumstances and grasp new characteristics, our country is transitioning from an openness based on the flow of goods and factors to an openness based on rules and institutions", Lin Shangli explained when discussing institutional opening. He noted that institutional opening refers to opening up at a deeper and more substantive level, aligning with the basic rules of China's economic and social development and the current global development trends. This approach aims to leverage the effects of China's large market and integrate it better with the global market. It also seeks to align the operating norms of China's market economy with global standards, enhancing the flow of capital, technology exchange, intellectual property protection, and the standardization of business and legal systems.

"Foreign capital, technology, knowledge, and enterprises can all receive solid institutional and legal protection for their operations and development in China. This is a fundamental strategic move for China to face the world, which is also a development area for an open major country", Lin stated. He emphasized that China's integration with the global market, forming a new development system that links domestic and international circulations, ensures that institutional opening facilitates smoother and more secure exchanges between the Chinese market and the world market, and between Chinese and global enterprises, as well as the exchange of technology and knowledge.

China's market economy is not closed but interconnected with the world. Reform is needed to integrate various institutional rules within the market. In a sense, emphasizing institutional opening is not merely about market and spatial issues but about advancing reform and opening-up to the level of rule-making and specific institutional regulations. Properly establishing this framework provides a platform and legal protection for international capital, global cooperation, and exchanges, fulfilling the requirements of reform.

Lin continued, stating that as a modernized strong nation, China should contribute to humanity in terms of institutions, systems, and mechanisms, offering new governance mechanisms and operational rules for the global market. If China's opening reaches such a level, the world would benefit from not only China's market but also new institutional rules, new certainties, and stabilities. Thus, institutional opening carries very rich implications.

V. Continuously Advancing Reform to Make Systems More Effective and Rational

Lin Shangli pointed out that the history of reform and opening-up is driven by development, exploration, and success, and is the key behind the Communist Party of China (CPC) finding the path of socialism with Chinese characteristics. Without reform and opening-up, there would be no present and no future.

Lin stated that in the new era, China has been continuously advancing reform through institutional development, establishing the Deepening Reform Committee. Before the 19th National Congress, meetings were held monthly, with the General Secretary personally pushing forward reforms. After the 19th National Congress, meetings were held every two months to continuously advance reforms. After the 20th National Congress, new comprehensive reforms are being systematically planned. "Throughout the entire development process, reform is continuous, never pausing or stagnating. Reform is specific and is continuously unfolded in daily development. This is one of the reasons for its success, continuously advancing reform, allowing development to unfold within the reform process, making the system more effective, more rational, and more dignified".

Discussing governance in the new era, Lin believes that the General Secretary has elevated governance to a new height. This new height lies in having a highly intelligent and effective theory, system, and strategy for governance. The strategies outlined at the 19th National Congress are characterized by a grand and stable layout, with the 'Five-Sphere Integrated Plan' and the 'Four-Pronged Comprehensive Strategy' working in coordination to advance scientifically and effectively. Additionally, comprehensive and strict governance of the Party is emphasized, targeting both leadership and the broader cadre. The anti-corruption campaign has made the team more effective in their endeavors and, more importantly, has fostered a clean and upright political environment, pushing the Party's cause forward.

(Translated by ZHANG Yuqing; Proofread by YANG Fanxin)