The Third Plenum: Why it is China's consequential meeting

The development of a nation is an ongoing and gradual process, and comprehensively deepening reform serves as an inexhaustible source of power driving China's growth.

At its third plenary session, the 20th Central Committee of the Communist Party of China adopted a comprehensive resolution on further deepening reform to advance Chinese modernization.

The overall objectives of further deepening reform are to continue improving and developing the socialism with Chinese characteristics, as well as modernizing China's system and capacity for governance.

To achieve this, efforts have been focused on eradicating any obstacles and challenges that could impede reform implementation.

This explains why we should have faith in the belief that China can continue modernizing despite a complicated situation, and that its reform will succeed and contribute to the stability of the global economy.

Four highlights

1. The third plenum has provided an accurate assessment of the domestic and international situations. Why is reform necessary, and what obstacles will it address? These must be studied and identified prior to developing a reform strategy.

The communique unanimously agreed that, in light of a complex international environment and the tough task of ensuring the stability of reform and development domestically, the present and near future represent a critical period in the central government's endeavor to build a prosperous country and move toward national rejuvenation on all fronts through modernization. This assessment is highly accurate and guarantees the achievement of reform objectives.

2. The statement asserts that the focus remains on addressing productive forces, intending to enhance institutions and mechanisms to nurture "new quality productive forces" that align with local realities.

A major new emphasis is on fostering new quality productive forces and boosting social dynamism by properly addressing the relationships between the economy and society, government and market, efficiency and justice, dynamism and order, and development and security. All of this suggests that current changes focus more on systemic and integrated components.

3. The communique has methodically and comprehensively highlighted major concerns and difficulties. For example, while it addresses a variety of issues, it serves as a guide in its stated emphasis on reforming the country's economic system, better leveraging the role of the market, fostering a fairer and more dynamic market environment, and making resource allocation as efficient and productive as possible.

The description of a comprehensive approach to national security, as well as improvements to the institutions and systems that protect it, suggests that current reform will focus on crucial concerns.

4. By stating that the reform tasks outlined in this resolution shall be completed by the time the People's Republic of China celebrates its 80th anniversary in 2029, there is a solemn pledge of time constraints for the current reform, indicating that the government places a high value on its effectiveness.

A new chapter

Given these factors, it is clear that the third plenary session will mark a new chapter in high-quality development.

Despite the developments China has achieved in recent years, some people keep coming up with negative narratives, citing lack of consumption, or high debt ratios. Yet, facts speak volumes for China's robust growth. According to the National Bureau of Statistics, gross domestic product increased by 5 percent in the first six months of this year.

One could articulate the global significance of China's sustained development along these lines:

First, institutional innovation has always been a key driver of economic growth, and as institutions build and perfect a system framework, it will undoubtedly continue to provide fresh impetus for reform, unleashing the country's inherent potential.

Second, China has always been able to tackle issues of the moment by pooling national resources, and, given the elevated central leadership, scientific macro-control and effective governance, these qualities would give fuller play to the advantages of the socialist market economy.

Third, China has a huge market potential, with over 1 billion consumers. The current reform, which calls for building a unified national market by overcoming resistance and obstacles, would be of vital importance in fostering social dynamism through reform.

Fourth, liberating productive forces has always been at the heart of reform. The communique believes that in the face of a new round of technological revolution and industrial transformation, it is crucial to improve the system for developing new quality productive forces suited to local conditions and overcome bottlenecks in technological innovation.

Fifth, people are the focus in reform. With the current stress on greater social fairness and justice, and improvements in quality of life as ultimate objectives, this rationale for reform will make our reform more integrated, focused and effective.

Sixth, a leading role in global governance is also vital to the reform process. The current reform will enhance China's role in international discourse because it is committed to deepening institutional reform related to foreign affairs and participating in efforts to lead the development of the global governance system.

To sum up, the current reform, initiated in the global context and in the face of several developmental difficulties, has been conceived based on solid and scientific investigation and will certainly withstand the test of time and the recognition of the people.

With the reform in full swing, China will enter a period of high-quality development, contributing more substantially to global economic prosperity.

(The author is deputy director of the Institute of World Economy, Shanghai Academy of Social Sciences. The article was translated by Wan Lixin.)