Global Times: 'Five coordinations' to guarantee China's economy to sail steadily into future

BEIJING, Feb. 7, 2025 /PRNewswire/ -- Advancing Chinese modernization through high-quality development is a nationwide mission led by the Communist Party of China (CPC). Under the leadership of the CPC Central Committee, various sectors leverage their strengths to implement a cohesive and strategic approach.

After overcoming numerous challenges, China's economy has emerged more resilient and dynamic than ever. The year of 2024 epitomizes China's extraordinary development journey in the new era.

At a pivotal moment in its development, China navigates a challenging landscape marked by both increased external pressures and internal difficulties. However, the CPC Central Committee with Comrade Xi Jinping at its core has united and led the entire Party and the Chinese people of all ethnic groups to respond calmly, implement comprehensive measures, and ensure the successful accomplishment of major tasks and targets for economic and social development, marking solid steps in Chinese modernization.

The Central Economic Work Conference (CEWC) held in December 2024 pointed out that the centralized and unified leadership of the CPC Central Committee is the fundamental guarantee for carrying out economic work well. At critical moments and important junctures, the CPC Central Committee promptly assesses the situation and makes decisions and arrangements to ensure that China's economy braves the wind and the waves and sails steadily into the future.

It is necessary to coordinate the relationship between an efficient market and an effective government, the relationship between aggregate supply and demand, the relationship between fostering new drivers and upgrading old ones, the relationship between optimizing incremental resources and making good use of existing resources, as well as the relationship between enhancing quality and expanding total output.

These five coordinations are major judgments made by Xi regarding the laws of economic development in the new era. They not only summarize and refine previous experience but also provide guidance and inspiration for development in the future. They represent progress in enriching and developing Xi's economic thoughts, and play a crucial guiding role in steering China's economy to brave the wind and the waves and navigate steadily.

Golden key

Coordinating five key economic aspects serves as both a strategic approach to overcoming current challenges and a golden key for advancing Chinese modernization.

Good coordination of the relationship between an efficient market and an effective government is key to forming an economic order that is both dynamic and well-regulated.

A well-functioning government means establishing rules and maintaining order. Since 2024, the negative list for foreign investment has been further reduced, the regulations on fair competition review have been officially implemented, and the government issued a document on strictly regulating administrative inspections on companies. Clarifying boundaries, the "visible hand" removes roadblocks and sets signposts, while the "invisible hand" injects vitality and strengthens confidence.

A well-functioning government requires covering position and improved services. The regulations on optimizing the business environment have been implemented, reforms such as one-stop service have been deepened, and enterprise-related administrative inspections are regulated. Optimizing services, the "invisible hand" reduces burdens and enhances comfort, while the "visible hand" acts effectively and increases efficiency.

From the second pair of relationship, coordinating total supply and demand is a crucial foundation for ensuring the smooth circulation of the national economy. Currently, China's economic operation still faces many difficulties and challenges, which mainly include insufficient domestic demand, operational difficulties in some enterprises, and pressures on employment and income growth.

Expanding domestic demand is integral to both economic stability and long-term security. It is not an expedient but a strategic move. Strengthening the coordination between supply and demand, particularly by addressing weak consumption areas, ensures that domestic demand remains a primary driver and stabilizing force for economic growth. This showcases the strategic vision of Xi's economic thought.

The third pair of relationship is an inherent requirement for developing new quality productive forces according to local conditions. The Chinese economy is at a crucial stage of transition from old to new growth drivers. Guided by tech innovation, we can vigorously cultivate and develop the emerging and future industries to shape new driving forces and advantages for economic development. At the same time, we must use new technologies to transform and upgrade traditional industries, revitalizing them to ensure a smooth and stable transition from old to new driving forces.

The fourth relationship is a crucial way to enhance the efficiency of resource allocation comprehensively. After years' development, China has accumulated vast assets while also incurring relatively large amount of liabilities. The introduction of an additional of 10 trillion yuan ($1.37 trillion) in dissolving local debt, among other measures, aims to alleviate burdens and boost momentum for local development.

Balancing quality and scale is essential for strengthening the material foundation of Chinese modernization. We must unify the pursuit of quality and the realization of scale effects. We should effectively leverage the advantages of an ultra-large market and diverse application scenarios, cultivate more world-class enterprises and leading technologies, and integrate the effective enhancement of quality with reasonable growth in quantity throughout the entire process of high-quality development.

The five coordinations, which align macro strategy, tactical execution, and practical implementation while integrating scientific principles with effective methodologies, deepen understanding, enhance capabilities, and provide a strategic guide for high-quality development.

Unchanged fundamentals

Recognizing economic patterns is important, but effective implementation determines success. By advancing this year's economic agenda and implementing the nine key tasks set by the CEWC, we can further refine and apply the five coordinations.

Expanding domestic demand hinges on balancing supply and demand while integrating consumption expansion with supply-side reforms. Innovation in technology, products, and business models will unlock market potential, while digital and green transformations will enhance supply adaptability to meet evolving needs.

New growth drivers must be demand-led. Developing the silver economy and ice and snow industries will spur industrial upgrades and new consumption. Strengthening service consumption and accelerating new quality productive forces will boost efficiency, resilience, and sustainability.

Advancing new quality productive forces through innovation necessitates a balanced approach that upgrades traditional industries while cultivating emerging sectors. Growth must be structured and region-specific, avoiding disorderly competition and ensuring alignment with national priorities rather than blind expansion.

While technological innovation drives this transformation, not all regions are suited to develop the same core technologies. Governments and enterprises must focus on innovation and quality-driven competition to secure long-term advantages and drive high-value, sustainable growth rather than short-term price wars that erode industry sustainability.

Progress is achieved through decisive action. The CEWC makes it a priority to get things done, strengthen confidence, face difficulties head-on, and work hard.

It is essential to acknowledge that China's long-term economic fundamentals remain unchanged. A vast market, comprehensive industry system, and dual-circulation strategy support sustainable growth. China's vast scale, skilled workforce, technological innovation, Party leadership, and socialist market economy offer a competitive advantage globally. A diverse business landscape, high savings rates, and strong adaptability further enhance resilience against economic fluctuations.

Collaboration fuels high-quality development. Progress requires synergy between government and market forces, supply and demand, innovation and tradition, stock and incremental growth, and quantity and quality.

The article was originally published on the front page of the People's Daily on February 4, 2025.

SOURCE Global Times