Macro-Control System

The general term for the comprehensive use of various policies and measures by the government to achieve macroeconomic regulation and control objectives and to intervene, regulate and control the operation of the macroeconomic. Since the Reform and Opening-up, especially since the 14th CPC National Congress, the basic framework of a macro-control system with national development strategies and planning plans as the guidance and fiscal policy, monetary policy, industrial policy, and price policy as the main means has been initially constructed. Improving the macro-control system is an essential part of the question of improving the socialist market economic system. The 14th CPC National Congress proposed that the goal of China’s economic system reform is to establish a socialist market economic system, so that the market can play a fundamental role in the allocation of resources under national macro-control.

The socialist market economic system framework proposed by the Third Plenary Session of the 14th Central Committee of the Communist Party of China takes the establishment and improvement of the macro-control system as one of the five pillars. After the reform practice from 1993 to 2002, the socialist market economic system was initially established. The Third Plenary Session of the 16th Central Committee of the Communist Party of China put forward the task of improving the socialist market economy system, taking the market’s fundamental role in resource allocation to a greater extent and improving the macro-control system as an important content. The 18th CPC National Congress proposed to speed up the improvement of the socialist market economy system, requiring that the market's fundamental role in resource allocation be played to a greater extent and in a wider range, and the macro-control system should be improved. The report of the 19th CPC National Congress emphasized the need to “strive to build an economic system with effective market mechanisms, vigorous micro-subjects, and adequate macro-control to continuously enhance China's economic innovation and competitiveness”.

Scientific macro-control and effective government governance are the inherent requirements for giving play to the advantages of the socialist market economy system. The socialist market economic system includes the two inseparable aspects of playing the role of the market and strengthening the country’s macro-control. To improve the socialist market economic system is to correctly handle the relationship between the market and the government, and between market regulation and macro-control. Firstly, the clear macro-control objectives and overall requirements of the national development strategy and plan are the main basis for formulating fiscal and monetary policies. Secondly, we need to take improving and giving full play to the role of fiscal and monetary policies as the main means of macro-control. Thirdly, strengthen the coordination of fiscal policy, monetary policy, industry, price and other policy measures, enhance the foresight, pertinence, and coordination of macro-control policies, and promote the construction of coordination mechanisms of macro-control policies. Fourthly, promote the institutionalization of macro-control objectives and policy formulation. Establish a sound economic situation analysis, research and judgment mechanism, and reasonably determine the expected goals of macroeconomic control. Establish and improve major issues research and policy reserve mechanisms, establish and improve democratic decision-making mechanisms, policy evaluation and adjustment mechanisms. Fifthly, form a mechanism to participate in the coordination of international macroeconomic policies and promote the improvement of the international economic governance structure.

Closely follow the international economic situation and changes in the macroeconomic policies of major economies, actively strengthen policy coordination and communication with major economies, participate more actively in multilateral and bilateral international economic cooperation, enhance international discourse power, promote a more fair and reasonable international economic order, and create an institutional environment conducive to domestic development.