Xi Jinping, general secretary of the Communist Party of China Central Committee, called on April 29 for efforts to regulate and guide the healthy development of capital in China according to law, and to give full play to the positive role of capital as a significant production factor.
Xi made the remarks while addressing a group study session of the Political Bureau of the CPC Central Committee.
Capital is a significant production factor in the socialist market economy, said Xi, who is also China’s president and chairman of the Central Military Commission.
He added that regulating and guiding capital development in the socialist market economy is not only a primary economic issue but also a major political issue, and is not just a major issue of practice but an important theoretical issue as well.
Capital development is related to adhering to the basic socialist economic system, the basic national policy of reform and opening-up, high-quality development and common prosperity, and national security and social stability, Xi said.
China now has various capital forms, including State-owned capital, collective capital, private capital, foreign capital and mixed-ownership capital, Xi emphasized. Such capital is increasingly significant in scale and seeing a faster operational pace, with more diversified ownership and a large amount of international capital flowing into the market, he said.
Xi underlined theoretical research on capital under new conditions, noting that regulating and guiding the healthy development of capital under the socialist system is a major theoretical and practical problem to be studied.
It is necessary to understand all kinds of capital forms and their functions in the country from a historical, developmental and dialectical perspective, he said.
Xi called for paying attention to inclusiveness in economic development and fairness in primary distribution, ensuring that capital can gain proliferation and development while participating in social distribution. Efforts should also be made to focus more on safeguarding the distribution system, in which distribution according to work is the mainstay, he said.
In addition, he emphasized, China will resolutely pursue common prosperity for all.
He stressed the need to deepen capital market reform, improve property rights protection, and further promote the implementation of policies for fair competition.
China should attract more international capital to invest and start businesses in the country with a high-quality market environment, Xi said.
Efforts should also support and encourage Chinese capital and enterprises to go global, he added.
Xi stressed that regulating and guiding the development of capital should involve improving the legal system for capital development, optimizing the market access system, and fighting, according to law, any monopolies and unfair competition, such as the abuse of market dominance.
He also highlighted the efficiency of capital governance, especially the capacity to spot risks and resolve them in primary areas and sectors that could bring systemic risks.