Secure a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New Era

Xi Jinping: The Governance of China III Updated: 2021-12-24

11. Upholding absolute Party leadership over the people's armed forces 

Building people's forces that obey the Party's command, can fight and win, and maintain excellent conduct is strategically important to achieving the Two Centenary Goals15 and national rejuvenation. To realize the Party's goal of building a powerful military in the new era, we must fully implement the fundamental principles and systems of Party leadership over the military, and see that the Party's thinking on strengthening the military for the new era guides work to build national defense and the armed forces. We must continue to enhance the political loyalty of the armed forces, strengthen them through reform and technology, and run them in accordance with the law. We must place greater focus on combat, encourage innovation, build systems, increase efficacy and efficiency, and further civil-military integration. 

12. Upholding the principle of "one country, two systems" and promoting national reunification 

Maintaining lasting prosperity and stability in Hong Kong and Macao and achieving China's full reunification are essential to realizing national rejuvenation. We must ensure both the central government's overall jurisdiction over the Hong Kong and Macao special administrative regions and a high degree of autonomy in the two regions. We should ensure that the principle of "one country, two systems" remains unchanged, is unwaveringly upheld, and in practice is not bent or distorted. We must uphold the one-China principle and the 1992 Consensus, promote the peaceful development of crossStraits relations, deepen economic cooperation and cultural exchanges between the two sides of the Straits, and encourage fellow Chinese on both sides to oppose all separatist activities and work together to realize China's national rejuvenation. 

13. Building a global community of shared future 

The dream of the Chinese people is closely connected with the dreams of the peoples of other countries; the Chinese Dream can be realized only in a peaceful international environment and under a stable international order. We must keep in mind both the internal and the international situation, stay on the path of peaceful development, and continue to pursue a mutually beneficial strategy of opening up. We will uphold justice while pursuing shared interests, and will foster new thinking on common, comprehensive, cooperative, and sustainable security. We will pursue open, innovative, and inclusive development that benefits everyone; boost cross-cultural exchanges characterized by harmony within diversity, inclusiveness, and mutual learning; and cultivate ecosystems based on respect for nature and green development. China will continue its efforts to safeguard world peace, contribute to global development, and uphold international order. 

14. Exercising full and rigorous governance over the Party 

To have the courage to carry out self-reform and conduct strict self-governance: This is the most distinctive part of our Party's character. We must uphold the Party Constitution as our fundamental rules, reinforce the political foundations as our priority, buttress our ideological commitment, strengthen our systems, and increase Party competence in all respects. We must focus on oversight over the "key few", by which we mean leading officials, and see that the Three Guidelines for Ethical Behavior and Three Basic Rules of Conduct are observed. 

We must uphold democratic centralism, ensure that intra-Party political activities are carried out in earnest, impose strict Party discipline, and strengthen internal oversight. We must develop a positive and healthy political culture in the Party and improve the Party's political ecosystem, resolutely correct misconduct in all its forms, and show zero tolerance for corruption. We will continue to strengthen the Party's ability to cleanse, improve, and reform itself, and forever maintain its close ties with the people. 

The above 14 points form the basic policy that underpins our endeavors to uphold and develop socialism with Chinese characteristics in the new era. All our members must fully implement the Party's underlying theories, basic guidelines, and fundamental principles so as to better steer the development of the Party and people's cause.

Just as there are no bounds to practice, there is no end to theoretical innovation. The world is changing with every second, every moment; and China, too, is changing with every second, every moment. We must ensure our theory evolves with the times, deepen our appreciation of objective laws, and advance our theoretical, practical, institutional, cultural, and other innovations. 

Comrades, 

The era is the mother of thought; practice is the fount of theory. If we respond to the call of our times and have the courage to uphold truth and correct errors, the Marxism of 21st century China will, without a doubt, emanate a more mighty, more compelling power of truth. 

IV. Securing a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Embarking on a Journey to Fully Build a Modern Socialist China 

After adopting the policy of reform and opening up, our Party laid out the three-step strategic plan for modernization16 in China. The first two – ensuring that people's basic needs are met and that their lives are generally decent – have been accomplished ahead of time. Building on this, our Party then developed the vision that by the time we celebrate our centenary, we will have developed our society into a moderately prosperous one with a stronger economy, greater democracy, more advanced science and education, thriving culture, greater social harmony, and a better quality of life. After this, with another 30 years of work, and by the time we celebrate the centenary of the People's Republic of China, we will have basically achieved modernization and turned China into a modern socialist country. 

The period between now and 2020 will be decisive in finishing the building of a moderately prosperous society in all respects. We must follow the requirements on building this society set out at our 16th, 17th, and 18th national congresses, act in response to the evolution of the principal challenge in Chinese society, and promote coordinated economic, political, cultural, social, and eco-environmental progress. We must show firm resolve in implementing the strategy for invigorating China through science and education, the strategy on developing a quality workforce, the innovation-driven development strategy, the rural revitalization strategy, the coordinated regional development strategy, the sustainable development strategy, and the civil-military integration strategy. We must focus on priorities, address inadequacies, and shore up points of weakness. In this regard, I want to stress that we must take tough steps to forestall and defuse major risks, carry out targeted poverty alleviation, and prevent and control pollution, so that the moderately prosperous society we build earns the people's approval and stands the test of time. 

The period between the 19th and the 20th national congresses is the period in which the timeframes of the Two Centenary Goals converge. In this period, not only must we finish building a moderately prosperous society in all respects and achieve the First Centenary Goal; we must also build on this achievement to embark on a new journey towards the Second Centenary Goal of fully building a modern socialist country. 

Based on a comprehensive analysis of the international and domestic environments and the conditions for China's development, we have drawn up a two-stage development plan for the period from 2020 to the middle of this century. 

In the first stage from 2020 to 2035, we will build on the foundation created by the moderately prosperous society with a further 15 years of hard work to see that socialist modernization is basically realized. The vision is that by the end of this stage, the following goals will have been met: 

– China's economic and technological strength has increased significantly. China has become a global leader in innovation. 

– The rights of the people to participate and to develop as equals are adequately protected. The rule of law for the country, the government, and society is basically in place. Institutions in all fields are further improved; the modernization of China's system and capacity for governance is basically achieved.

– Social etiquette and civility are significantly enhanced. China's cultural soft power has grown much stronger; Chinese culture has greater appeal. 

– People are leading more comfortable lives, and the size of the middle-income group has grown considerably. Disparities in urbanrural development, in development between regions, and in living standards are significantly reduced; equitable access to basic public services is basically ensured; and solid progress has been made towards prosperity for everyone. 

– A modern social governance system has taken shape, and society is full of vitality, harmonious, and orderly. 

– There is a fundamental improvement in the environment; the goal of building a Beautiful China is basically attained. 

In the second stage from 2035 to the middle of the 21st century, having basically achieved modernization, we will work hard for a further 15 years and develop China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful. By the end of this stage, the following goals will have been met: 

– New heights are reached in every dimension of material, political, cultural and ethical, social, and eco-environmental progress. 

– Modernization of China's system and capacity for governance is achieved. 

– China has become a global leader in terms of composite national strength and international influence. 

– Common prosperity for everyone is basically achieved.

– The Chinese people enjoy happier, safer, and healthier lives.

The Chinese nation will become a proud and active member of the community of nations. 

Comrades, 

This is our strategic vision for developing socialism with Chinese characteristics in the new era: Finish building a moderately prosperous society in all respects, move on to basically realizing modernization, and then turn to making China a great modern socialist country in every dimension. We must work with resolve and tenacity, and strive to write a brilliant chapter on our new journey to socialist modernization. 

V. Applying a New Vision of Development and Developing a Modernized Economy 

To deliver on the Two Centenary Goals, realize the Chinese Dream of national rejuvenation, and steadily improve our people's lives, we must continue to pursue development as the Party's top priority in governance; we must unleash and develop productive forces, continue reforms to develop the socialist market economy, and promote sustained and sound economic growth. 

China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development. This is a pivotal period for transforming our growth model, improving our economic structure, and fostering new drivers of growth. It is imperative that we develop a modernized economy. This is both an urgent requirement for getting us smoothly through this critical transition and a strategic goal for China's development. We must put quality first and give priority to performance. We should pursue supply-side structural reform as our main task, and work hard for better quality, higher efficiency, and more robust drivers of economic growth through reform. We need to raise total factor productivity and accelerate the building of an industrial system that promotes coordinated development of the real economy with technological innovation, modern finance, and human resources. We should endeavor to develop an economy with more effective market mechanisms, dynamic micro-entities, and sound macro-regulation. This will steadily strengthen the innovation capacity and competitiveness of China's economy. 

1. Furthering supply-side structural reform 

In developing a modernized economy, we must focus on the real economy, give priority to improving the quality of the supply system, and enhance our economy's strength in terms of quality. 

We will work faster to build China into a manufacturer of quality and develop advanced manufacturing, promote further integration of the internet, big data, and artificial intelligence with the real economy, and foster new growth areas and drivers of growth in medium-high end consumption, innovation-driven development, the green and low-carbon economy, the sharing economy, modern supply chains, and human capital services. We will help traditional industries to upgrade and accelerate development of modern service industries to elevate them to international standards. We will move Chinese industries up to the medium-high end of the global value chain, and foster a number of world-class advanced manufacturing clusters.

We will strengthen infrastructure networks for water conservancy, railways, highways, waterways, aviation, pipelines, power grids, information, and logistics. We will continue efforts to cut overcapacity, reduce excess inventory, deleverage, lower costs, and strengthen areas of weakness, and work to achieve a dynamic balance between supply and demand by improving the allocation of available resources and increasing high-quality supply.

We will inspire and protect entrepreneurship, and encourage more entities to engage in innovation and businesses. We will build an educated, skilled, and innovative workforce, foster respect for model workers, promote quality workmanship, and see that taking pride in labor becomes a social norm and seeking excellence is valued as a good work ethic. 

2. Making China a country of innovators 

Innovation is the primary driving force behind development; it is the strategic foundation for building a modernized economy. 

We should aim for the frontiers of science and technology, strengthen basic research, and make major breakthroughs in pioneering basic research and groundbreaking and original innovations. We will strengthen basic research in applied sciences, launch major national science and technology projects, and prioritize innovation in key generic technologies, cutting-edge frontier technologies, modern engineering technologies, and disruptive technologies. These efforts will provide powerful support for building China's strength in science and technology, product quality, aerospace, cyberspace, and transport, and for building a digital China and a smart society. 

We will improve our national innovation system and boost our strategic scientific and technological strength. We will further reform the management system for science and technology, and develop a market-oriented system for technological innovation in which enterprises are the main players and synergy is created through the joint efforts of enterprises, universities, and research institutes. We will support innovation by small and medium-sized enterprises and encourage the application of advances in science and technology. 

We will foster a culture of innovation, and strengthen the creation, protection, and application of intellectual property. We should cultivate a large number of world-class scientists and technologists in strategically important fields, scientific and technological leaders, and young scientists and engineers, as well as high-performing innovation teams. 

3. Pursuing a rural revitalization strategy 

Issues relating to agriculture, rural areas, and rural people are fundamental to China as they directly concern our country's stability and our people's wellbeing. Addressing these issues should have a central place on the work agenda of the Party, and we must prioritize the development of agriculture and rural areas. To build rural areas with thriving businesses, pleasant living environments, social etiquette and civility, effective governance, and prosperity, we need to put in place sound systems, mechanisms, and policies for promoting integrated urban-rural development, and speed up the modernization of agriculture and rural areas. 

We will consolidate and improve the basic rural operation system, advance reform of the rural land system, and improve the system for separating the ownership rights, contract rights, and management rights for contracted rural land. Rural land contracting practices will remain stable and unchanged on a long-term basis; the current round of contracts will be extended for another 30 years upon expiration. We will press ahead with reform of the rural collective property rights system, safeguard the property rights and interests of rural people, and strengthen the collective economy. 

We must ensure China's food security so that we always have control over our own food supply. We will establish industrial, production, and business operation systems for modern agriculture, and improve the systems for supporting and protecting agriculture. We will develop appropriately scaled agricultural operations of various forms, cultivate new types of agribusiness, improve specialized agricultural services, and encourage small rural households to become involved in modern agriculture. 

We will integrate the primary, secondary, and tertiary industries in rural areas, support and encourage employment and business startups there, and open up more channels to increase rural incomes. We will strengthen basic services in rural communities, and improve the rural governance model which combines self-governance, rule of law, and rule of virtue. We will train professional rural service personnel who have a good knowledge of agriculture, love our rural areas, and care about rural people. 

4. Implementing the coordinated regional development strategy 

We will devote more energy to speeding up the development of old revolutionary base areas, areas with large ethnic minority populations, border areas, and poor areas. We will strengthen measures to reach a new stage in the large-scale development of the western region; deepen reform to accelerate the revitalization of old industrial bases in the northeast and other parts of the country; help the central region rise by tapping into local strengths; and support the eastern region in taking the lead in pursuing optimal development through innovation. To this end, we need to put in place new, effective mechanisms to ensure coordinated development of different regions. 

We will create networks of cities and towns based on city clusters, enabling the coordinated development of cities of different sizes and small towns, and speed up work on granting permanent urban residency to people who move from rural to urban areas. We will relieve Beijing of functions nonessential to its role as the capital and use this effort to drive the coordinated development of the Beijing-TianjinHebei Region; and we will develop forward-looking plans and adopt high standards for building the Xiongan New Area. We will facilitate the development of the Yangtze River Economic Belt by promoting well-coordinated environmental conservation and avoiding excessive development. Support will be given to resource-depleted areas in their economic transformation. We will accelerate development in the border areas, and ensure their stability and security. We will pursue coordinated land and marine development, and step up efforts to build China into a strong maritime country. 

5. Accelerating efforts to improve the socialist market economy 

In our economic reforms, we must concentrate on improving the property rights system and ensuring the market-based allocation of factors of production, so that property rights act as effective incentives. We should ensure free flows of factors, flexible prices, fair and orderly competition, and that business survival is determined by competition. 

We will improve the systems for managing different types of state assets, and reform the system of authorized operation of state capital. In the state-owned sector, we will step up improved distribution, structural adjustment, and strategic reorganization. We will work to see that state assets maintain and increase their value; we will support state capital in becoming stronger, doing better, and growing bigger, and take effective measures to prevent the loss of state assets. We will further reform state-owned enterprises, develop mixed-ownership economic entities, and turn Chinese enterprises into world-class, globally competitive firms. We will introduce a negative list for market access nationwide, sort through and do away with regulations and practices impeding the development of a unified market and fair competition, support the growth of private businesses, and stimulate the vitality of various market entities. 

We will deepen reforms in the business sector, break administrative monopolies, preclude the forming of market monopolies, speed up the reform of market-based pricing of factors of production, relax control over market access in the service sector, and improve market oversight mechanisms. We will develop new methods to improve macro-regulation, give full play to the strategic guidance of national development plans, and improve mechanisms for coordinating fiscal, monetary, industrial, regional, and other economic policies. 

We will improve systems and mechanisms for stimulating consumer spending, and leverage the fundamental role of consumption in promoting economic growth. We will further reform the investment and financing systems, and enable investment to play a crucial role in improving the supply structure. 

We will expedite the creation of a modern public finance system, and establish a fiscal relationship between the central and local governments built upon clearly defined powers and responsibilities, appropriate financial resource allocation, and greater balance between regions. 

We will put in place a comprehensive, procedure-based, transparent budget system that uses well-conceived standards and imposes effective constraints; and we will implement performance-based management nationwide. 

We will deepen reform of the taxation system, and improve the local tax system. We will deepen institutional reform in the financial sector, make it better serve the real economy, increase the proportion of direct financing, and promote the healthy development of a multilevel capital market. 

We will improve the framework of regulation underpinned by monetary policy and macro-prudential policy, and see that interest rates and exchange rates become more market-based. We will improve the financial regulatory system to forestall systemic financial risks. 

6. Making new ground in pursuing opening up on all fronts 

Openness brings progress, while self-imposed isolation leaves one behind. China will not close its door to the world; we will only become more and more open. 

We should pursue the Belt and Road Initiative as a priority, give equal emphasis to "bringing in" and "going global", follow the principle of achieving shared growth through discussion and collaboration, and increase openness and cooperation in building innovation capacity. With these efforts, we hope to make new ground in opening China further through links running eastward and westward, across land and over sea. 

We will expand foreign trade, develop new models and new forms of trade, and turn China into a trader of quality. We will adopt policies to facilitate high-standard free trade and investment; we will implement the system of pre-establishment national treatment plus a negative list across the board, significantly ease market access, further open the service sector, and protect the legitimate rights and interests of foreign investors. All businesses registered in China will be treated equally. 

We will improve the balance in opening our different regions, and open the western region wider. We will grant more powers to pilot free trade zones to conduct reform, and explore the opening of free trade ports. We will develop new ways of making outbound investments, promote international cooperation on production capacity, form globally-oriented networks of trade, investment and financing, production, and services, and build up our strengths for international economic cooperation and competition. 

Comrades, 

Unlocking and developing the productive forces is a fundamental task of socialism. We must inspire creativity and vitality throughout society, and strive to achieve better quality, more efficient, fairer, and more sustainable development. 

VI. Improving the Systems to Ensure the People's Position as Masters of the Country and Socialist Democracy 

China is a socialist country of people's democratic dictatorship under the leadership of the working class based on an alliance of workers and farmers; it is a country where all power of the state belongs to the people. China's socialist democracy is the broadest, most genuine, and most effective democracy to safeguard the fundamental interests of the people. The very purpose of developing socialist democracy is to give full expression to the will of the people, protect their rights and interests, spark their creativity, and provide systemic and institutional guarantees to ensure the people's position as masters of the country. 

The path of socialist political advancement with Chinese characteristics is the logical outcome of the evolution of history, theory, and practice as the Chinese people have long been engaged in struggles since the advent of modern times. It is a requisite for maintaining the very nature of the Party and fulfilling its fundamental purpose. 

No two political systems are entirely the same, and a political system cannot be judged in abstraction without regard for its social and political context, its history, and its cultural traditions. No one political system should be regarded as the only choice; and we should not mechanically copy the political systems of other countries. 

We must always uphold and steadily strengthen China's socialist democracy, make active and prudent efforts to advance the reform of the political system, and improve the institutions, standards, and procedures of socialist democracy. We should ensure that people participate, in accordance with the law and in various ways and forms, in the management of state, economic, cultural, and social affairs, and consolidate and enhance political stability, unity, and vitality. 

1. Upholding the unity of the Party's leadership, the people's position as masters of the country and law-based governance 

The Party's leadership is the fundamental guarantee for ensuring that the people are the masters of the country and governance in China is law-based; that the people are the masters of the country is an essential feature of socialist democracy; and that law-based governance is the basic way for the Party to lead the people in governing the country. These three elements are integral components of socialist democracy. 

In China's political life, our Party exercises leadership. Strengthening the centralized, unified leadership of the Party on the one hand and, on the other, supporting the people's congresses, governments, committees of the Chinese People's Political Consultative Conference (CPPCC), courts, and procuratorates in performing their functions and playing their roles in accordance with the law and their charters, form a unified pair. 

We will improve the way the Party exercises leadership and governance to ensure that it leads the people in effectively governing the country. We will expand the people's orderly political participation to see that in accordance with the law they engage in democratic elections, consultations, decision-making, management, and oversight. We should uphold the unity, sanctity, and authority of China's legal system, and strengthen legal protection for human rights to ensure that the people enjoy extensive rights and freedoms as prescribed by law. We should both consolidate government and improve the institutions of democracy at the primary level to ensure the people's rights to be informed, to participate, to be heard, and to oversee. 

We will improve mechanisms for law-based decision-making, and put in place mechanisms for the exercise of power that ensure sound decision-making, resolute execution, and effective oversight. Officials at all levels must deepen their understanding of democracy, be democratic in their conduct, willingly accept public oversight, and perform as they should in their role as public servants. 

2. Strengthening institutional guarantees to ensure the people are the masters of the country 

We must always uphold and steadily improve the system of people's congresses, a political system fundamental to the Party's leadership, the people's position as masters of the country, and law-based governance. We should support and ensure the people's exercise of state power through people's congresses. 

We should see to it that people's congresses and their standing committees play the leading role in lawmaking, and improve the organizational and working systems of people's congresses to support and ensure the exercise of their statutory powers of enacting laws and regulations, conducting oversight, making decisions, and appointing and removing officials. We should give better play to the role of deputies to people's congresses, and enable people's congresses at all levels and their standing committees to fully perform their functions as stipulated in the Constitution and the law, and to truly represent the people and maintain close ties with them. We should improve the setup of special committees of people's congresses and the composition of their standing committees and special committees. 

3. Giving play to the important role of socialist consultative democracy 

The essence of the people's democracy is that the people get to discuss their own affairs. Consultative democracy is an important way of effecting Party leadership and a model and strength unique to China's socialist democracy. We will advance extensive, multilevel, and institutionalized development of consultative democracy, and adopt a coordinated approach to promoting consultation carried out by political parties, people's congresses, government departments, CPPCC committees, people's organizations, communities, and social organizations. We will strengthen the institutions of consultative democracy and develop complete procedures and practices to enable the people's broad, continuous, and intensive participation in day-to-day political activities. 

The CPPCC, as a distinctive Chinese political institution, is a major channel for socialist consultative democracy, and its committees are specialist consultative bodies. The CPPCC committees should focus on the Party and the country's key tasks. With the themes of unity and democracy in mind, they should exercise consultative democracy throughout the whole process of political consultation, democratic oversight, and participation in the deliberation and administration of state affairs; and they should improve the content and forms of consultation and deliberation to build consensus and promote unity. They should strengthen democratic oversight, focusing on the implementation of the major principles, policies, decisions, and plans of the Party and the state. They should better represent the different social sectors and strengthen the competence of their members.

4. Advancing law-based governance

Advancing law-based governance in all fields is a profound revolution in China's governance. We must promote the rule of law and work to ensure sound lawmaking, strict law enforcement, impartial administration of justice, and the observance of law by everyone. A central leading group for advancing law-based governance in all areas will be set up to exercise unified leadership over the initiative to build rule of law in China. We will strengthen implementation of the Constitution and enhance oversight to ensure compliance with the Constitution, advance constitutionality review, and safeguard the authority of the Constitution. We will carry out lawmaking in a well-conceived and democratic way and in accordance with the law, so that good laws are made to promote development and ensure good governance. We will govern by rule of law, promote law-based government administration, and see that law is enforced in a strict, procedure-based, impartial, and non-abusive way. We will carry out comprehensive and integrated reform of the judicial system and enforce judicial accountability in all respects, so that the people can see in every judicial case that justice is served. 

We will redouble efforts to raise public awareness of the law, develop a socialist culture of rule of law, and increase public awareness of the principle underlying rule of law that the Constitution and the law are above everything else and that everyone is equal before the law. Every Party organization and every Party member must take the lead in respecting, studying, observing, and applying the law. No organization or individual has the power to overstep the Constitution or the law; and no one is allowed in any way to override the law with his or her own orders, place his or her authority above the law, violate the law for personal gain, or abuse the law. 

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