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

Adopted by the Third Plenary Session of the 16th CPC Central Committee on October 14, 2003. Included in the Selection and Compilation of Important Documents since the 16th National Congress (Vol. 1).

In order to implement the strategic plan of building a perfect socialist market economic system and a more viable and open economic system put forward by the 16th CPC National Congress, the “Decision” has put forward the objectives and main tasks of perfecting the socialist market economic system and elaborated on the guiding ideology and principles for deepening the reform of the economic system.

Objectives: In accordance with the requirements of integrated urban and rural development, integrated regional development, integrated economic and social development, integrated harmonious development of man and nature, integrated domestic development and opening to the outside world, the fundamental role of the market in resource allocation will be brought into play to a greater extent, the vitality and competitiveness of enterprises will be enhanced, the state’s macro-control will be improved, the social management and public service functions of the government will be improved, and a strong institutional guarantee for building a moderately prosperous society in all respects will be provided.

Main tasks: improving the basic economic system in which public ownership is the mainstay and diverse ownership systems develop side by side; establishing a system conducive to gradually changing the dualistic economic structure between urban and rural areas; forming a mechanism to promote coordinated regional economic development; building a unified, open, competitive and orderly modern market system; improving the macroeconomic control system, administrative system and economic legal system; improving the employment, income distribution and social security system; and establishing a mechanism to promote sustainable economic and social development.

The “Decision” puts forward the guiding ideology and principles for deepening the reform of the economic system: to be guided by Deng Xiaoping theory and the important thought of the “Three Represents”, implementing the Party's basic line, basic programme and basic experience, implementing the spirit of the 16th National Congress in all respects, emancipating the mind, seeking truth from facts and keeping pace with the times. It adheres to the reform direction of the socialist market economy and focuses on system building and institutional innovation. It respects the spirit of initiative of the masses and gives full play to both central and local initiatives. It adheres to the correct handling of the relationship between reform, development and stability, and promoting reform in a focused and step-by-step manner. It adheres to an integrated and balanced approach and coordination of the various interests in the reform process. It adheres to a human-oriented approach, establishes a comprehensive, coordinated and sustainable outlook on development, and promotes an all-round economic, social and human development.

The “Decision” specifically elaborated on "Further consolidating and developing the public sector of the economy and encouraging, supporting and guiding the development of the non-public sectors of the economy", "Improving the state-owned assets management system and deepening the reform of state-owned enterprises", "Deepening the rural reform and improving the rural economy", "Improving the market system and regulating the market order", "Continuing to improve macro-control and accelerating the transformation of government functions", "Improving the fiscal and taxation system and deepening financial reform", “Deepening the reform of the foreign-related economic system and comprehensively improving the level of openness to the outside world", "Promoting the reform of the employment and distribution system and improving the social security system", "Deepening the reform of the science, technology, education, culture and health system, improving the national innovation capacity and the overall quality of the nation", “Deepening reform of the administrative system and improving the economic and legal system", "Strengthening and improving the leadership of the Party and striving to improve the socialist market economy system", and other issues.

The “Decision” was of great and far-reaching significance in promoting Reform and Opening-up and modernization.