In 2003, the third plenary session of the 16th Communist Party of China (CPC) considered and approved “the decision of the central committee of Communist Party of China about some issues of perfecting the socialist market economic system”. Over ten years of development, China has constantly improved the socialist market economic system, greatly liberated and developed productivity. After deepening the reform of stateowned enterprises, China has established a modern enterprise property right system, the market competitiveness has been enhanced significantly, and the nonpublic sectors of the economy have developed soundly; The public finance system has been constantly improved; The modern financial system has been gradually established, and the large financial institution shareholding system reform and the nontradable share reform has seen a breakthrough; the social security system has been gradually improved, and the reform of the pension and the basic medical insurance systems covering urban and rural region has made great strides; the income distribution reform is at the deepening stage; the overall rural reform has continued to deepen; the modern market system and the macroeconomic regulation and control system have been constantly improved; the establishment and perfection of the national comprehensive reform pilot area marked the constant improvement of the regional policy in our country.
However, our country is still and will for a long time continue to be in the primary stage of socialism, and the principal contradiction between peoples increasing material and cultural needs and lagging social production has not changed. In general, the productivity level is not high, the independent innovation capacity is not strong, the extensive growth model has not fundamentally changed, and institutional hurdles which affect development still remain.
Only by deepening the economic system reform in various fields can we solve many problems in development. We need to correctly handle the relationship between government and market, deepen the reform of the administrative system, speed up the transformation of the government function, make the market allocation of the resources, and remove institutional obstacles which are not conducive to playing the basic role of the marketBy deepening the reform of the fiscal and taxation system, the financial system, and the resource product pricing system, we can eliminate the institutional hurdles which are not conducive to transforming the model of the economic developmentBy steadily pushing forward the reform of the income distribution system, gradually forming the “olive shape” distribution pattern that the middleincome people make up the majority, and speeding up the establishment of the social security system which covers both urban and rural residents, We can eliminate the institutional hurdles which are not conducive to building a moderately prosperous society in all aspects.
Therefore, we must clearly recognize a series of experiences and lessons which have been learned in the process of the economic system reform, and profoundly understand the focus and difficulties in the next step in reform. Through gradual reform, we strive to build a more perfect and mature socialist market economic system in 2020.