First Observation | The Central Economic Work Conference Put Forward “Six Better Coordinations”

2023 marks the inaugural year for fully implementing the spirit of the 20th National Congress of the Communist Party of China, and it is also a pivotal year as epidemic prevention and control enters a new phase, making sound economic management of paramount importance. Next year’s economic development will face numerous difficulties and challenges. The recently concluded Central Economic Work Conference underscored the need to uphold a systems‑based approach, stay true to fundamentals while fostering innovation, and proposed “six better coordinated efforts”—

　　“Better coordinate epidemic prevention and control with economic and social development”

　　This meeting places “better coordinating epidemic prevention and control with economic and social development” at the top of its agenda, underscoring its profound significance.

　　“We must contain the epidemic, stabilize the economy, and ensure secure development—these are the clear directives of the Party Central Committee.”

　　Since the outbreak of the pandemic, we have effectively countered its impact, ensuring the safety and health of our people. Over the past three years, China’s economy has grown at an average annual rate of around 4.5%, significantly outpacing the global average. Our achievements in both pandemic response and development are plain to see and stand the test of time.

　　The new phase calls for effectively addressing emerging challenges. At present, while the virus remains highly transmissible, both the rate of severe illness and the mortality rate have declined significantly, leading to a shift in the primary contradiction in epidemic prevention and control. By earnestly implementing the measures to optimize COVID‑19 response as outlined by the central authorities, we will accelerate the restoration of economic and social order and further invigorate the circulation and functioning of the economy.

　　“Better coordinate the effective improvement of economic quality with reasonable quantitative growth.”

　　Economic development is the organic unity of quantitative change and qualitative transformation.

　　With regard to the relationship between “quality” and “quantity,” the meeting placed “quality” ahead of “quantity,” underscoring the paramount importance of quality in economic development and signaling that high-quality development will remain a consistent priority in China’s economic agenda going forward.

　　To promote high-quality economic development, it is also essential to continue achieving reasonable growth in economic output. At present, China’s economy still needs to maintain an appropriate growth rate; only by expanding the overall economic pie can we ensure stable economic performance under the current circumstances and safeguard overall social stability.

　　“Better coordinate supply-side structural reform with the expansion of domestic demand.”

　　Deepening supply-side structural reform is the only path to achieving high-quality development and serves as the overarching guiding principle throughout all aspects of economic work. At the same time, it is imperative to vigorously implement the strategy of expanding domestic demand to address the pressing issue of insufficient aggregate demand.

　　Many areas of current economic work represent the intersection of supply-side structural reform and the expansion of domestic demand. Therefore, it is essential to foster a favorable institutional and systemic environment and implement appropriate policy guidance, turning these convergence points into drivers of economic growth and ensuring that China’s economy continues to advance steadily along the path of high-quality development.

　　“Better coordinate economic policies with other policies”

　　Economic and social development is a complex, interconnected system that encompasses social development, people’s livelihoods, ecological conservation, cultural advancement, and many other dimensions. Only by coordinating policies across all sectors—ensuring they reinforce and mutually support one another—can we harness synergies to drive high-quality development.

　　The spirit of the 20th National Congress of the Communist Party of China and the CPC Central Committee’s decisions and arrangements on economic work serve as the crucial guiding force for promoting the stable development of China’s economy and society. In formulating and implementing policies, we must prioritize the overarching goal of advancing high-quality development, uphold a systems‑based approach and practical standards, adhere to economic laws, and assess the success or failure of policies based on their real‑world outcomes. We should strengthen consistency assessments with macroeconomic policy orientations, promptly identify and rectify deviations in policy implementation, review and revoke policy documents that run counter to high-quality development, and foster a concerted effort to drive high-quality growth.

　　“Better coordinate domestic and international circulations”

　　Accelerating the establishment of a new development pattern featuring domestic circulation as the mainstay and domestic and international circulations reinforcing each other means relying more on the domestic market to drive economic growth, thereby forging new advantages for China in international cooperation and competition.

　　The new development paradigm is by no means a closed domestic circulation; rather, it is an open dual circulation—domestic and international. At present, China’s international circulation in trade, investment, human capital, and technology all require further expansion in scale, optimization of structure, and enhancement of quality. By leveraging international circulation, we can elevate the efficiency and sophistication of the domestic large‑scale circulation, improve the quality and allocation of our production factors, and foster a virtuous, mutually reinforcing dynamic between domestic and international circulations.

　　“Better coordinate the present and the long term”

　　General Secretary Xi Jinping stated in the report to the 20th National Congress of the Communist Party of China: “From now on, the central task of the Communist Party of China is to unite and lead the people of all ethnic groups across the country in fully building a modern socialist country and achieving the Second Centenary Goal, thus advancing the great rejuvenation of the Chinese nation through Chinese-style modernization.”

　　Chinese modernization is a long-term historical process. As we embark on the inaugural year of fully implementing the spirit of the 20th National Congress of the Communist Party of China, we must both ground ourselves in the present and carry out our immediate tasks while engaging in forward-looking thinking, accurately grasping the objective realities, and coordinating short-term responses with medium- and long-term development to ensure seamless continuity for future progress.

　　Epidemic prevention and control, economic and social development, quality versus quantity, supply versus demand, the local versus the global, domestic versus international considerations, and the immediate versus the long-term—these “six aspects of better coordination” represent the concrete application of systems thinking in macroeconomic regulation. By adhering to a systems‑based approach to optimizing economic governance, this framework takes into account both the annual characteristics of next year’s economic work and the important lessons learned from China’s economic management in recent years.

　　Adhering to a systems‑based approach is a key methodological principle of Xi Jinping’s economic thought. In guiding all aspects of work, our Party has consistently emphasized comprehensive balance and holistic planning. Faced with the complex realities and heavy tasks of practical work, it both prioritizes overall coordination and focuses on key priorities, implementing counter‑cyclical and cross‑cycle macro‑regulation—“playing the piano with all ten fingers”—to achieve dynamic equilibrium among multiple objectives.

　　Pressing forward under pressure, we must climb steep slopes and overcome obstacles. To ensure the success of next year’s economic work, we must achieve “better coordination across six key areas.” We must strengthen the Party’s overall leadership over economic affairs, uphold a spirit of earnestness and pragmatism, and approach our tasks with a proactive, enterprising mindset and a sense of responsibility that keeps us constantly vigilant. By unleashing the vitality of the entire society to pursue development and entrepreneurship, we will surely secure a stable start and lay a solid foundation for fully building a modern socialist country.

　　Planning: Huo Xiaoguang

　　Lead Author: Ye Haoming

　　Coordinated by: Zou Wei, Wang Xuan, Shi Yongnan

　　Visuals | Editors: Zhang Shuning, Zhang Huihui

　　Produced by the Domestic Department of Xinhua News Agency

　　Produced by Xinhua News Agency Studio No. 1