Decision of the CPC Central Committee on Several Issues Concerning the Establishment of a Socialist Market Economy System

Adopted by the Third Plenary Session of the 14th Central Committee of the CPC on November 14, 1993. Included in the Selection and Compilation of Important Documents since the 14th National Congress (Vol. 1).

The “Decision” embodies the goals and basic principles of economic restructuring put forward by the 14th National Congress and further develops them in some aspects, also it formulates a general plan for establishing the socialist market economic system, which has become the action programme for economic restructuring during the 1990s. The “Decision” consists of 50 articles and 10 parts.

(1) The new situation and tasks facing China's economic system reform; (2) Transforming the operating mechanism of state-owned enterprises and establishing modern enterprise system; (3) Cultivating and developing market system; (4) Transforming government functions and establishing and perfecting macroeconomic regulation and control system; (5) Establishing reasonable personal income distribution and social security system; (6) Deepening the reform of rural economic system; (7) Deepening the reform of foreign economic system and further expanding the Opening-up; (8) Further reforming the system of science and technology and education; (9) Strengthening the construction of legal system; (10) Strengthening and improving the leadership of the Party to strive for the initial establishment of the socialist market economic system at the end of the 20th century.

The “Decision” has pointed out that the socialist market economic system is combined with the basic socialist system. Building the socialist market economic system was to ensure that the market would play a fundamental role in the allocation of resources under the state’s macro-control. The management mechanisms of state-owned enterprises should be further transformed, so that they would have a clearly established ownership, well-defined power and responsibility, separation of enterprise from administration, and scientific management of SOEs. The establishment of this goal laid the foundation for the modern enterprise management system thus the “Decision” also played a vanguard role in the transformation of government functions. To achieve this goal, the principle of public ownership as the main body and common development of various economic components and ownership forms should be upheld.

Attention should be paid to the following points: emancipating the mind and seeking truth from facts; focusing on economic construction, promoting and uniting Reform and Opening-up, combining economic development and social stability; respecting the creative spirit and the initiative of the masses and attaching importance to their vital interests; and combining overall promotion with key breakthroughs in certain fields. The “Decision” pointed out that the establishment of modern enterprise system is the direction of the reform of state-owned enterprises and is of great significance for better playing their leading roles in the whole economy.

The “Decision” stated: “In line with the reform of the economic system, we should actively promote the reform of the political system” and emphasized the need to strengthen and improve the Party leadership. The “Decision” has outlined the basic framework of the socialist economic system, summarized the basic experience of China's Reform and Opening-up, made new breakthroughs in theory and policy, thus constituted a programmatic document for further reforms.