(Yicai) July 23 -- The 20th Central Committee of the Communist Party of China has set out reforms in 14 areas such as economic systems or other key institutions at its third plenary session, with the “deadline” set for the 80th anniversary of New China in 2029, showing a strong will and execution capacity, according to a recent report by two Chinese scholars.

“Building a high-level socialist market economy system” was proposed as the first of these reform tasks, per the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, a sweeping reform plan published on July 21.

“We must better leverage the role of the market, foster a fairer and more dynamic market environment, and make resource allocation as efficient and productive as possible,” the policy document also said.

This highlighted the dual objectives of the socialist market system, enhancing the efficiency of resource allocation while considering broader benefits and ensuring both the vitality of the market and fairness, according to the report penned by Zhong Ninghua, deputy dean of Tongji University's School of Economics and Management, and doctoral candidate Qian Yilei.

The document noted that China will “stay committed to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting, and guiding the development of the non-public sector,” thereby reaffirming the principle of the “two unswervings.”

According to the two scholars, this implies that non-public economic entities, including private firms, will compete on an equal footing with public companies in terms of financing, credit enhancement, and the use of factors of production, such as scientific research infrastructure, based on the law. The goal is to support and guide firms in improving resource utilization efficiency and speeding up the development of more world-class enterprises, they added.

Perfecting the system and mechanism for promoting high-quality economic development was another aspect of the reforms, focusing on “improving the institutions and mechanisms for fostering new quality productive forces in line with local conditions,” the document said.

This includes encouraging and regulating the development of angel investment, venture capital, and private equity investment, as well as promoting the growth of new industries, new models, and new growth drivers, the academics pointed out.

Shanghai is also hastening the construction of a center for technological innovation, especially in the artificial intelligence field, striving to form an AI innovation hub that is internationally competitive, they added.

Editor: Martin Kadiev