CHAPTER ONE
Achievements of Xi Jinpingâs Practice of Governance
Key Points
From 2012 to 2016, Xi has made major achievements in six areas:
âą Completing the building of a moderately prosperous society in all respects
âą Transforming and upgrading the growth model
âą Driving reform to a deeper level
âą Combating corruption, implementing the rule of law, and creating a new political ecology
âą Thoroughly implementing Party discipline
âą Increasing the use of diplomacy to create a new world order
It was after China entered the new stage of reform and development that Xi Jinping took over to lead the CPC with other members of the leadership. His appearance as the leader of the new central leadership attracted widespread attention domestically and globally due to the peopleâs new aspirations, the new stage of reform and development, and the new changes in international politics and the economy. The world wanted to know what kind of vision and wisdom Xi would exhibit to steer China, the ancient ship that has set sail in new waters, and what kind of strategy and governance skills he would exhibit to lead the Chinese people towards revitalization and prosperity.
It was amazing how quickly Xi took on his role as the steersman, and led the new leadership to begin a new voyage with courage and resolve. Carrying forward the revolutionary spirit of Mao Zedong, Deng Xiaoping and other leaders from earlier generations, Xi has exhibited the capacity and vision to govern China in the new age. His call for expanding the reform and progress in governance has ushered in a new era, leading the CPC and China in its aim to build a more prosperous society, to carry reform to deeper levels, to implement the rule of law, and to strengthen CPC discipline. Since 2012, he has fully demonstrated his ability to do these things.
It is evident that in these few short years, Xi Jinpingâs achievements in governance were reflected in all areas and sectors, and at all levels: completing the building of a moderately prosperous society, transforming and upgrading the growth model, driving reform to a deeper level, combating corruption, implementing the rule of law and a new political ecology, increasing Party discipline, and increasing the use of diplomacy to create a new world order.
I. THE BUILDING OF A MODERATELY PROSPEROUS SOCIETY IN ALL RESPECTS
Achievements
âą Concept enriched
âą Development coordinated
âą Concrete steps taken
The building of a moderately prosperous society, in all respects, is a strategic plan of the CPC based on contemporary Chinaâs conditions and stage of development and is an important step to realizing the Chinese Dream. Once the mission is completed, there will be qualitative change in Chinese society. The new goal of emphasizing prosperity is to be accomplished in all respects, including politics, economics and culture, to meet the demands of both urban and rural development. This goal is testimony to the courage of the CPC, which has made a solemn promise to the Chinese people, and provided a timetable for completing the mission.
Since late 2012, the new generation of CPCâs leadership has taken action to implement the decisions and plans approved at the 18th National Congress, by enriching governance philosophies and promoting the building of âa moderately prosperous society in all respects.â The prosperity goal has been made a top priority in a Four-Pronged Strategy. Since the Congress, the CPC has made new achievements in this regard and in the meantime has gained substantial experience.
Achievement one: concept enriched
In terms of content, the prosperity goal targets the areas of economics, politics, culture, society and ecology with a comprehensive approach. In terms of scope, it covers all regions of China, and aims to eradicate poverty in the country by 2020. In terms of criteria, the standard of âmoderate prosperity,â a dynamic index, will change as the economy and society develop, and is expected to be on the rise. As the concept and contents continue to be enriched, the people have a clear direction and a road map for the mission, and are better prepared to take action.
Achievement two: development coordinated
Under the Four-Pronged Strategy, efforts to complete the building of a âmoderately prosperous society in all respectsâ have been coordinated and mutually enhanced in the areas of economics, politics, culture, society, ecology, and Party building. In the economic sector, China has entered a New Normal, featuring steady growth, transforming growth model, developing high-end industries, consumption-driven growth, and industrial upgrading. In politics, under CPC leadership, achievements have been made in promoting political democracy, implementing the rule of law, supervising officials, and fighting against corruption to develop a sound political ecology. In the cultural sector, the charm of Chinese culture is felt around the globe, and Chinaâs soft power is on the rise. In the social sector, new progress has been made in defending the rights and interests of the people, safeguarding social fairness and justice, and improving peopleâs well-being. In the area of ecology, answering the call to build a more beautiful China, more people have begun to respect nature and follow its natural laws. People are living greener lives, and energy conservation and environmental protection have become basic national policies. In Party building, Party discipline has been strengthened, and CPC members and officials are setting good examples for the people. Cohesiveness, unity, and strength of the CPC have been enhanced. The coordinated development of all areas has built valuable experience for handling tough problems and given the Chinese confidence in their ability to complete goals.
Achievement three: concrete progress made
It is the people who can judge whether they are living a good life, and it is the people who constitute the foundation of the nation. Over the past three plus years, China took peopleâs well-being as a central task, and rested prosperity in all respects on the foundation of sufficiency in the material sense. Among the tasks decided at the Third Plenary Session of the CPCâs 18th Central Committee, several dozen were about peopleâs well-being, including areas such as healthcare, education, employment, and housing, which are closely related to peopleâs interests and are of pressing concern for the people. China has pushed forward reforms designed to improve living standards with unprecedented fortitude and intensity, achieving a series of solid accomplishments that the people can see, feel, and benefit from. The reform of wealth distribution has been initiated, and an olive-shaped income-distribution structure is being formed. The reform of the household registration system is being implemented. Registered households in different key cities are getting treated more equally, and rural registered residence will become a thing of the past. Some students are now allowed to take the college entrance examination where they choose to study rather than at the schools of their registered residences, and more students from rural areas will be enrolled in key universities. Supervision of food security will be coordinated and enhanced, to ensure food safety. Medical insurance will cover more categories of diseases, and the urban-rural gap will be narrowed in terms of medical care standards. Policies of precisely targeted poverty reduction, with close management of the recipients, projects, funding, measures, sending of officials, and effects, will be implemented. A new round of decrepit area renovation has begun, and poverty reduction efforts are being focused on âpoverty beltsâ where entire regions of people are struggling under the poverty line. Ecological recovery projects, represented by the Yangtze River project, have been launched to promote the productivity of ecological products and safeguard peopleâs environmental rights. In 2014 alone, 13 million new jobs were created in urban areas, and the national per capita disposable income reached 20,167 yuan, growing faster than the GDP. The basic retirement pension has increased for nine consecutive years, the subsidies for the new rural cooperative medical system have kept increasing, and the social security network is covering more people. A total of 7.4 million units of low-income housing began construction in urban areas, and 2.66 million dilapidated houses in rural areas were renovated. The fruits of development are benefiting every Chinese citizen, and the peopleâs wish for a good life is becoming reality. The Chinese are living happier lives.
II. TRANSFORMING AND UPGRADING THE GROWTH MODEL
Achievements
âą New economic theories developed
âą Hardships and progress
âą A bright future for Chinese economy
The economy is the basis of a countryâs strength and the lifeline of its development. In the last few years, Chinaâs economy has exhibited new traits: growth has slowed down to a more sustainable rate; with the upgrading of the economic structure, tertiary industry is now serving the majority of consumption demands; and the economic engine, which was powered by production factors, is increasingly driven by innovation, and is promoting the role of the market and releasing the vitality of reform. These changes demonstrate that Chinaâs economy has officially entered a new stage of development and a New Normal featured by structural adjustment, transformation and upgrading. These past few years witnessed great changes in Chinaâs development philosophy, growth model, and growth engine. Painful as it has been, the process has been effective and the results are positive.
Achievement one: development of new economic theories
Faced with the problems accumulated during Chinaâs 30-plus years of high-speed growth and the adverse impacts of the global financial crisis, Xi Jinping made a timely analysis of Chinaâs economic problems on deeper levels and correctly judged the economic situation in the current stage of development. He defined development as âwell-balanced development conforming to the laws of economics,â and âsustainable development following the laws of nature.â On this basis, Xi developed his own economic theories surrounding the Chinese Dream and covering the following areas: the dominant role of socialist public ownership, the peopleâs well-being and other fundamental questions regarding the Chinese economy, transforming the growth model and improving development and innovation, obtaining a deeper understanding of Chinaâs economic pattern and innovation of the economic philosophy, and improving Chinaâs model of economic governance.
The new economic theories are developed in light of Chinaâs conditions, and will guide the long-term development of Chinaâs economy by following several key concepts. The first economic strategy should aim at realizing the Chinese Dream. The Chinese Dream will only come true after China completes the building of a âmoderately prosperous society in all respects,â which will require many concrete tasks and steps. Accomplishing this level of prosperity will require clear goals and action plans. A timetable has been set for step-by-step implementation of these plans to fulfill the peopleâs aspirations. The second economic strategy should aim at steady progress. This thinking has been able to prevent local governments from blind pursuit of GDP targets and disorderly expansion. It has prevented governments from financing vanity projects, and is conducive to helping officials foster the correct attitude towards political performance. The third economic strategy should aim at improving peopleâs lives. By adopting the concepts of Gross Domestic Product of Welfare and Happiness Index, President Xi will be able to reinforce the principle of common prosperity, a cornerstone of Chinese socialism, and let every person enjoy the benefits of development equally. The fourth economic strategy should aim at upholding the dominant role of socialist public ownership. The privatization of State-Owned Enterprises (SOEs), of land and financeâsigns of neoliberalismâwere eliminated and its adverse impacts eliminated. The fifth economic strategy should aim at promoting urban-rural integration. President Xi is committed to solving the issues facing agriculture, farmers and rural areas, which are constraining comprehensive development at their root. The equal exchange of urban and rural production factors and the balancing of public resources will give voice to social fairness and justice to the largest possible extent. The sixth economic strategy should aim to promote innovation- and technology-driven growth. Scientific innovation and institutional innovation, two pillars for progress in contemporary China, will be reinforced as Chinaâs core competitiveness for national prosperity. The seventh economic strategy should aim to integrate overall development with local development. By collectively handling the relationship between overall advancement and key progress, and between top-level design and reform, development, and stability, President Xi is able to hold to a well-balanced outlook on development, a dialectical view of reform, and to prevent fundamental mistakes and disastrous errors. The eighth economic stratefy should aim at supply-side reform. By promoting structural adjustment through reform, the quality and efficiency of the supply system will be enhanced, the economy will continue to grow with good momentum, and social productivity will step up to a higher level.
Achievement two: concrete progress in economic transformation amidst hardships
Since late 2012, the new generation of the CPCâs central leadership has been holding onto the bottom line of economic development, with clear strategic positioning, accurate understanding of the development trend, innovative adjustments of the guiding thoughts, calm responses to downward pressure, and the resolve to push forward economic transformation. During this period, China has made solid progress at times of hardship, and a firm foundation has been laid for the long-term development of the countryâs economy. The last few years of practice has proven that Chinaâs economy is more stable at a seven percent growth rate. Facing a new situation and new problems under the New Normal, China did not blindly print money or expand its investments, which would have only resulted in a deficit. Instead, it tapped its idle assets, enabling its economy to heal and adjust. Further adjustment has been made in the economic structure. Consumption now contributes more to economic growth than investment does, the added value of the service industry is increasing at higher rates than the manufacturing industry, and new technology and equipment manufacturing are growing faster than the average industrial growth rate, with quality development as the key. Resident income is taking up more room in income distribution, and energy consumption per GDP continues to decline, showing significant improvement in development quality. On the roles of the market and the government, both the âinvisible handâ and the âvisible handâ have played their roles, complementing and promoting each other for integrated and balanced development. The change of government functions and active performance of the market have inspired ordinary people to start up businesses in various capacities. More growth points are emerging, new growth forces are accelerating and accumulating strength, and the unbalanced economic system is being overturned towards one in favor of better, internally-driven growth.
Achievement three: progress in economic transformation heralding a bright future
Over the past few years, the journey of economic transformation has not been easy, the results not completely satisfactory, and expectations might not be fully fulfilled. Despite all of this, achievements were made by implementing new thoughts and exploring new paths; they were realized amidst the global economic downturn and complex geopolitical circumstances, and in the most difficult conditions as China drives its reform to a deeper level. It is fair to say that these accomplishments are more valuable than gold and reflect the resolve, courage and tenacity of the Chinese leadership to uproot institutional illnesses for future development. We have reason to believe that as soon as China makes it through the current stage, it will have a new beginning and will be rewarded handsomely. More than a few years of practice has demonstrated that Chinaâs economy, in the pursuit of well-designed, healthy and sustainable development, is vigorous and has a bright future. Domestically, the New Normal means new challenges, but also opportunities, in the following senses: First, despite slower growth rates, the size of the economy will continue to grow under a more sustainable growth model. Second, steadier growth will bring about more channels of power engines. Third, an upgraded economic structure promises more chances and ample room for development. Fourth, the streamlining of administration and delegation of powers to lower levels will release the vitality of the market. Just as Xi Jinping analyzes, despite slower growth rates, Chinaâs economy is still tenacious and has great potential. China still has a strong economic foundation and favorable conditions for growth, and economic restructuring and upgrading will continue to advance the economy.
Internationally, the transformation of the Chinese economy has brought opportunities to the global economy in the following senses: One, Chinaâs economy will maintain middle-to-high-speed growth, and will pull the world out of the economic downturn. Two, the consumption potential released from Chinaâs economic transformation will drive the global economy. Three, the Belt and Road Initiative (B&R) will provide unprecedented opportunities for the 65 nations included, and create a new model of regional economic development underlined by mutual benefit and common prosperity. Four, Chinaâs economic transformation will push the global industrial chain up the ladder and upgrade global industries.
It is well-expected that China, now and in future, will undoubtedly develop its economy to a more sophisticated state with improved labor division and structure. Under the...