Deepening National Security Reforms to Guarantee Consistent Advancement in Chinese Modernization

Persistent efforts are needed to fully implement the guiding principles of the third plenary session of the 20th Communist Party of China(CPC)Central Committee and advance the reform of China's national security work on the new journey that lies ahead.All of us in the Party should never forget our original aspiration.Since the advent of the new era,China has pushed forward and made remarkable achievements in reforming its national security work,undergoing a process of constant evolvement and continuous improvement.The third plenary session of the 18th CPC Central Committee could be deemed the starting point of comprehensively deepening reform in the new era,opening a new epoch for reforming and innovating China's national security work.It identified modernizing China's system and capacity for governance as the overall goal of further deepening reform comprehensively and,most significantly,made a historic decision to establish the National Security Commission,having far-reaching impacts.General Secretary Xi Jinping stressed pursuing a holistic approach to national security,which provides us with fundamental guidance for further reform.The new version of the National Security Law of the People's Republic of China fully covers China's national security system and will guide the improvement of its legal system for national security in the new era.The fourth plenary session of the 19th CPC Central Committee called for improving China's national security system in efforts to modernize the country's system and capacity for governance.The 20th CPC National Congress clarified the Party's central task on the new journey and made strategic plans for safeguarding Chinese modernization through modernizing the country's national security system and capacity.The third plenary session of the 20th CPC Central Committee carried forward the spirit of the above meetings,from the third plenary session of the 18th CPC Central Committee to the 20th CPC National Congress,reiterating the importance of further deepening reform comprehensively on the new journey,emphasizing national security as the foundation for advancing Chinese modernization,and setting out the road map and agenda for modernizing China's national security system and capacity in the next five years.Therefore,we must study and implement the guiding principles of the third plenary session of the 2Oth CPC Central Committee.

Tasks and Priorities for Comprehensively Deepening Reform of China’s State Sector of Economy

The Third Plenary Session of the 18th CPC Central Committee ushered in a new chapter of China＇s comprehensive deepening of reform. The basic objective of comprehensively deepening reform of the state sector of economy in the new chapter is to fully integrate this sector with a sophisticated market economic system with the market playing the decisive role in resource allocation. In order to achieve this objective, China is confronted with the four major priorities of adjusting the functions and layout of the state sector of economy according to national mandates, expediting the mixed ownership reform, creating a classified and multi- tiered new system for the administration of the sector, and developing a modern corporate system for SOEs to ensure an efficient micro-level governance mechanism for the sector. （1） The functions of the different types of SOEs should be accurately defined and SOEs should be divided into the three types of public policy SOEs, functional SOEs, and commercial SOEs. This classification forms the premises for reforming the state sector of economy. Based on the functions of the three types of SOEs, the directions and emphases for strategic adjustment should differ as well. （2） The mixed ownership reform should adhere to the methodological principles of combining top-down and bottom-up approaches, implementing pilot programs, and promoting coordinated progress. Practical implementation should ensure fair and standard reform procedures, reform programs consistent with laws and regulations, open and fair equity transfers, as well as fair and transparent internal distributions. The mixed ownership reform of SOEs should introduce the employee stock ownership system and adhere to the principles of compatible incentives, shared growth, and long-term development. Monopolistic sectors should be transformed into competitive market structures to create conditions for the implementation of mixed ownership for SOEs. （3） The new system for the administration of the state sector of economy should comprise three hierarchies： the Commission for the Administration of State Economy at the top level, state capital operation companies or state capital investment companies at the intermediate level and general for-profit enterprises at the bottom level, which administer public policy, functional SOEs, and commercial SOEs respectively. （4） Under the new system for the administration of the state sector of economy characterized by the three hierarchies and categories, the key for perfecting the modern corporate system of SOEs is to establish a differentiated, classified governance mechanism, i.e., different corporate governance mechanisms should be created for SOEs of different functions and roles.