Promote high-quality economic development in a higher level of dynamic balance between supply and demand.

　　Author: Zhang Jiangang (special researcher at the New Era Socialism with Chinese characteristics Thought Research Center, the supreme leader of China Academy of Social Sciences, and researcher at the Institute of Marxism)

　　Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with the Supreme Leader as the core has creatively put forward a series of new ideas, new ideas and new strategies in the great practice of uniting and leading the people of the whole country to promote Socialism with Chinese characteristics’s economic construction, thus forming and developing the economic thought of the Supreme Leader. In the past 10 years, under the scientific guidance of the supreme leader’s economic thought, China’s economic development has made historic achievements and undergone historic changes. Promoting high-quality development is an important content of the supreme leader’s economic thought, which mainly includes the following contents: in the new stage of development, we must take promoting high-quality development as the theme, adhere to quality first and benefit first, promote quality change, efficiency change and power change, adhere to the supply-side structural reform as the main line, improve the quality and efficiency of the supply system, make the supply system better adapt to the changes in demand structure, and achieve a higher level of dynamic balance between supply and demand. These contents have deepened our party’s understanding of the law of economic development and enriched and developed the theory of Marxist political economy on the quality of development. High-quality development is the theme of China’s economic and social development in the 14 th Five-Year Plan and even in a longer period, which is related to the overall situation of China’s socialist modernization. To achieve high-quality development, we must be problem-oriented, adhere to the system concept, and promote sustained, healthy and stable economic development in a higher level of dynamic balance.

　　Malong District, Qujing City, Yunnan Province has vigorously developed the flower industry, with an output value of 277 million yuan in the first half of 2022. The picture shows a scene of marigold in Yuewang Township, Malong District. Xinhua news agency

　　1. Dialectically handle the relationship between supply and demand.

　　Supply and demand are two basic aspects of the internal relationship of market economy, and they are both contradictory and unified dialectical relations. Without demand, supply cannot be realized, and new demand can give birth to new supply; Without supply, demand cannot be met, and new supply can create new demand.

　　At present, there are both supply and demand problems in China’s economic development. To solve these problems, we need to deepen the supply-side structural reform, as well as carry out demand-side management and implement the strategy of expanding domestic demand. Promoting supply-side structural reform is consistent with implementing the strategy of expanding domestic demand, and it is not a simple substitute relationship. From the perspective of political economy, it is one-sided to abandon the demand side to talk about the supply side or the supply side to talk about the demand side. The two are not an alternative relationship, but a relationship of mutual cooperation and coordinated promotion. To deepen the supply-side structural reform, we should make good use of the important tool of demand-side management, organically combine the implementation of the strategy of expanding domestic demand with deepening the supply-side structural reform, adhere to both demand-side management and supply-side reform, and form a higher level dynamic balance in which demand pulls supply and supply creates demand.

　　High-quality development is a development that can better meet the people’s growing needs for a better life, a development that embodies the new development concept, a development that promotes supply and demand to a higher level and achieves a dynamic balance at a higher level. From the supply point of view, to promote high-quality development, we must strive to make the industrial system more complete, the production organization more networked and intelligent, constantly enhance the innovation ability, demand capture ability, brand influence and core competitiveness of enterprises and industries, and constantly improve the quality of products and services. From the perspective of demand, the process of promoting high-quality economic development is the process of constantly meeting the individualized, diversified and escalating needs of the people. This change in demand constantly leads to changes in the supply system and structure, and then through supply changes, new demands are constantly born.

　　Economic development is a spiraling process, and it is a process in which supply and demand interact and escalate. To promote high-quality economic development, we must focus on solving various problems that restrict economic development on the supply side and the demand side, so that supply can fully meet the upgraded demand, and demand can lead the supply upgrade more efficiently, forming a benign interaction, mutual matching and dynamic balance between supply and demand.

　　Judging from the current economic development situation, China’s economy has problems that restrict high-quality development on both the supply side and the demand side. On the supply side, it is mainly manifested in the structural imbalance of the real economy and the imbalance between finance and the real economy. On the demand side, it mainly faces the problems of weak growth momentum of external demand, insufficient consumption ability and willingness of residents, lack of new growth points of high-end consumption, and sluggish upgrading of consumption structure. In view of the supply-side problems, it is necessary to continuously deepen the supply-side structural reform, stimulate the power of economic growth, optimize the allocation of factors, adjust the production structure, and continuously improve the quality and efficiency of supply, thus promoting economic growth. In view of the demand problems, it is necessary to implement the strategy of expanding domestic demand, cultivate a more complete domestic demand system, expand household consumption, upgrade consumption levels, open up urban and rural consumption markets, improve consumption environment, continuously release consumption potential, and give full play to the basic role of consumption in promoting economic development.

　　2. Adhere to the supply-side structural reform as the main line.

　　At present and in the future, among a series of problems and challenges facing China’s economic development, structural problems are the most prominent. Among them, the main aspect of the contradiction lies in the supply side, so promoting the structural reform of the supply side is the main line of economic work at present and in the future, the inevitable requirement of cultivating new growth impetus, forming new development advantages and realizing innovation to lead development, and the fundamental cure for changing the mode of economic development and improving the efficiency and quality of the supply system.

　　General Secretary of the Supreme Leader pointed out: "In the final analysis, the ultimate goal of supply-side structural reform is to meet demand, the main direction is to improve supply quality, and the fundamental way is to deepen reform." To meet the demand is to deeply study the market changes, understand the actual demand and potential demand, and better meet the people’s growing needs for a better life in liberating and developing social productive forces. Improving the quality of supply means reducing ineffective supply, expanding effective supply, optimizing the allocation and combination of existing production factors, optimizing the existing supply structure, optimizing existing products and services, striving to improve the quality of the whole supply system, and leading and creating new demand with innovation-driven and high-quality supply. Deepen the reform, that is, continue to improve the relevant institutional mechanisms, make the market play a decisive role in resource allocation, give better play to the role of the government, break the monopoly, improve the factor market, and make the price mechanism truly guide resource allocation.

　　Supply-side structural reform is a tough battle with a long-term relationship. We must adhere to the eight-character policy of "consolidating, strengthening, upgrading and smoothing", which is the general requirement for deepening supply-side structural reform and promoting high-quality economic development at present and in the future. Consolidate the results of "three to one, one reduction and one supplement", increase the intensity of "breaking, establishing and reducing", and persist in de-capacity, de-inventory, de-leverage, cost reduction and short-boarding. Enhance the vitality of micro-subjects, speed up the improvement of modern enterprise system with China characteristics, establish fair, open, open and transparent market rules, improve the market-oriented and legalized international business environment, and speed up the construction of world-class enterprises. Improve the modernization level of industrial chain supply chain, adhere to self-control, safety and efficiency, do a good job in supply chain strategic design and precise policy by industry, and promote the optimization and upgrading of the whole industrial chain. Smooth the national economic cycle, rely on the strong domestic market, break the industry monopoly and local protection, and form a virtuous circle of the national economy.

　　3. Building a new development pattern based on expanding domestic demand.

　　With the change of global political and economic environment, unilateralism and protectionism are on the rise. Building a new development pattern with domestic macro-cycle as the main body and domestic and international dual-cycle promoting each other has become an important strategic choice to improve China’s economic development level and cope with risk challenges. General Secretary of the Supreme Leader pointed out: "To build a new development pattern, we must adhere to the strategic basis of expanding domestic demand, so that production, distribution, circulation and consumption rely more on the domestic market and form a virtuous circle of the national economy." Forming a strong domestic market is an important support for building a new development pattern and a fundamental support for promoting high-quality economic development. Expanding domestic demand has provided the impetus for China’s sustained, healthy and stable economic development, and also provided favorable conditions for China’s industrial upgrading and consumption upgrading.

　　To expand domestic demand, we must make precise measures against the structural imbalance on the supply side, guide supply to improve quality and efficiency, and promote the transformation of old and new kinetic energy as soon as possible, so as to promote high-quality economic development. To expand domestic demand, we must pay attention to guiding the upgrading of consumption structure, meeting people’s personalized, diversified and high-end consumption needs, encouraging the development of new consumption modes and formats, constantly improving residents’ consumption ability and willingness, and combining expanding consumption with improving people’s quality of life. To expand domestic demand, we should also pay attention to tapping the potential of investment demand, deepen the reform of investment and financing system, improve the investment environment in an all-round way, give full play to the inciting role of government investment, stimulate the vitality of private investment, moderately advance infrastructure investment, promote the construction of major projects such as new infrastructure, new urbanization, transportation and water conservancy, support the development of some new technologies, new products, new formats and new business models, and accelerate the key core technology research projects to achieve more results.

　　4. Adhere to the general tone of steady progress.

　　Achieving high-quality economic development is a long-term, arduous and complex systematic project, and we must adhere to the general tone of steady progress and systematically promote it. The General Secretary of the Supreme Leader pointed out: "The general tone of striving for progress while maintaining stability is an important principle of our governance and a methodology for doing a good job in economic work." To promote high-quality economic development, we should persist in striving for progress with stability, making progress with stability, ensuring that economic growth, employment and prices do not fluctuate greatly, and ensuring that there are no regional systemic risks in finance. At the same time, we should be proactive and make a difference, firmly grasp the initiative of development, continuously improve the quality and efficiency of economic development, continuously enhance the core competitiveness of enterprises, cultivate and expand new economic growth points and growth poles, and ensure that the transformation of economic development mode and innovation-driven development achieve new results. Adhere to the principle of establishing first, then breaking down, steadily and steadily, organically combine steady growth, restructuring and promoting reform, organically unify supply-side structural reform and demand-side management, organically integrate the implementation of new development concepts and the construction of new development patterns, and constantly promote quality change, efficiency change and power change to achieve sustained, healthy and high-quality economic development.

　　Adhering to the general tone of steady progress and solidly promoting high-quality economic development, we must adhere to the system concept. General Secretary of the Supreme Leader emphasized that "the concept of system is a basic thought and working method". From the perspective of system theory, we should optimize the way of economic governance, apply dialectics, make overall consideration and comprehensive balance, highlight key points, drive the overall situation, improve the ability of overall planning and coordinated promotion, and seek dynamic balance among multiple goals. Dialectically handle the relationship between supply and demand, and promote the formation of a benign interaction, mutual matching and dynamic balance between them; Overall consideration of short-term response and medium-and long-term development, external shocks and endogenous motivation, overall planning of domestic and international situations, and efficient overall planning of epidemic prevention and control and economic and social development; Adhere to a national chess game and give full play to the enthusiasm of the central, local and all parties; Strive to achieve the overall and local matching, the combination of radical treatment and palliative treatment, and the convergence of gradual progress and breakthrough; Realize the unity of development quality, structure, scale, speed, benefit and safety.

　　(This article is a phased achievement of the National Social Science Fund’s major project [〔20ZDA014〕])

　　Guangming Daily (September 5, 2022, 06 edition)

Source: Guangming Net-Guangming Daily