The third plenary session of the 20th Central Committee of the Communist Party of China last month resolved to further comprehensively deepen reform to advance Chinese modernization, marking a pivotal moment in the country's economic reform, and charting the course of the country's future development and strategic direction.

The third plenary session's resolution, which outlined reform objectives to be fully achieved by 2029, in time for the People's Republic of China's 80th anniversary, said the country will reinforce the socialist market economy. And the multiple references to "structural reform" and "high-standard socialist market economy" in the resolution indicate the country remains committed to traveling this path. In particular, the resolution asserts that market-oriented reforms will continue unabated, because it is necessary for maintaining the high-quality development momentum and ensuring China's economy develops in line with its modernization goals.

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The resolution underscores the fundamental role of a high-standard socialist market economy in achieving Chinese modernization. China's transition from a centrally planned economy to a dynamic socialist market economy has helped the country pursue high-quality development, invigorated market forces, and optimized the use of global resources, including capital and talents, and technologies, and allowed the market to play a decisive role in resource allocation.

The world is undergoing unprecedented changes thanks partly to a new round of technological revolution and industrial transformation. Researchers are achieving more breakthroughs in cutting-edge technologies and disruptive innovations are emerging regularly, giving rise to new industries, new development models and drivers of growth.

Amid all this, the United States and its Western allies have intensified their efforts to contain and suppress China.

To tackle these challenges and seize the available opportunities, China has to better harness the market mechanisms, develop a fairer and more dynamic market environment, and implement effective regulations, in order to maintain the market order, address the market shortcomings, ensure the smooth circulation of the economy, unleash the country's innovation potential and propel the internal driving forces, promoting high-quality development.

The resolution provides a clear timeline for achieving these reforms. By 2029, China aims to complete the proposed reforms, and by 2035 establish a high-standard socialist market economy. The timeline not only reflects a commitment to comprehensively deepen reforms but also aligns with the broader goal of achieving Chinese modernization by 2035. The synchronization of these goals highlights the critical role a modern economic system plays in advancing Chinese modernization and ensuring the economic reform continues to support and drive broader developmental objectives.

The third plenary session has reaffirmed the "two unswerving" principles: unwavering support for the public sector and encouragement for the non-public sector. This balanced approach is essential for harnessing the strengths of different types of business ownership. The public sector's prominence is key to maintaining China's economic system. On the other hand, the non-public sector, including private enterprises, plays a crucial role in promoting innovation and strengthening the country's competitiveness.

Removing the barriers to fair competition and supporting diverse market participants are necessary to navigate the uncertainties and expedite technological and industrial advancements, which will help China adapt to new economic realities and enhance its global economic standing.

Besides, the resolution highlights the importance of carrying out thorough reforms across various areas of the economy. For example, the reform of the economic system is part of a broader strategy that includes improving macroeconomic governance, promoting innovation, and integrating urban and rural development.

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The emphasis on systemic integration and comprehensive deployment underscores the need to adopt a holistic approach to achieving high-quality development. This approach includes improving infrastructure, boosting industry resilience, integrating the digital economy, and minimizing, if not totally eradicating, regional disparities. By focusing on these areas, China aims to create a robust economic framework that supports sustainable growth and modernization.

The third plenum has outlined a detailed and ambitious plan for advancing economic reform. The development of a high-standard socialist market economy is essential for realizing Chinese modernization, providing the necessary institutional support for overcoming global challenges and cashing in on the emerging opportunities. In other words, the third plenum's resolution aims to advance Chinese modernization, which should be seen as an ongoing process of reform and opening up, paving the way for a broad and prosperous future.

The author is deputy dean of National Academy of Chinese Modernization, Chinese Academy of Social Sciences.

The views don’t necessarily reflect those of China Daily.