Key Terms to Understand Reform and Opening Up

The China Academy of Translation has analyzed prevailing terms concerning the reform and opening-up policy and translated them into a number of foreign languages. The research institute is affiliated with the China International Publishing Group， the countrys leading international publisher. In each issue， Beijing Review presents a selection of these keywords to help readers more deeply understand this program.

Supply-Side Structural Reform

At present and for the foreseeable future， China will face a number of issues in its economic development in both supply and demand， but mostly on the supply side.

The ultimate goal of supply-side reform is to meet demand by improving quality through further reform. In order to meet demand， we must have a clear sense of market changes and understand the present and potential demand so that products can be made available through unleashed and increased productivity to meet the growing material and cultural needs of the population. In order to improve the quality of supply， we need to increase effective supply through a systemic improvement on the supply side so that ineffective supply is weeded out and supply is structured in a way that can effectively meet demand.

The fundamental approach to achieving this goal is deeper reform. Institutions must be put in place to allow the market to play a decisive role in the allocation of resources. Further reform is also needed with the administrative management system in order to break up monopoly and maintain a healthy factor market so that the price mechanism can truly serve as a guide for resource allocation. Structural reform on the supply side is designed to address overcapacity， reduce inventory， deleverage， lower costs， and tackle areas of weaknesses.

New Concept for Development

Development is the underpinning and the key for solving all our countrys problems； our development must be sound. We must pursue with fi rmness of purpose the vision of innovative， coordinated， green and open development that is for everyone.

We must uphold and improve Chinas basic socialist economic system and socialist distribution system. There must be no irresolution about working to consolidate and develop the public sector； and there must be no irresolution about working to encourage， support and guide the development of the non-public sector. We must see that the market plays a decisive role in resource allocation， the government plays its role better， and new industrialization， IT application， urbanization and agricultural modernization go hand in hand. We must participate in and promote economic globalization， develop an open economy of higher standards， and continue to increase Chinas economic power and composite strength.

We must put quality fi rst and give priority to performance. We should pursue supply-side structural reform as our main task， and work hard for better quality， higher efficiency and more robust drivers of economic growth through reform.

In addition to supply-side structural reform， implementing the new concept for development entails efforts to make China a global leader in innovation， a rural revitalization drive， coordinated development at subnational levels， initiatives to improve the socialist market economy， and a strategy for greater openness.

Coordinated Development of Beijing-Tianjin-Hebei Region

The Coordinated Development of the Beijing-Tianjin-Hebei Region as part of Chinas development strategy aims at an orderly relocation of all non-essential functions from Beijing， the national capital， to neighboring locations. The move entails adjusting the economic structure and rationalizing space utilization， while exploring a new model of optimized coordinated development in a region with a dense population， to create a new growth pole in the region.

The broad region covers Beijing， Tianjin and 11 prefectural cities in the neighboring Hebei Province. Environmental protection， integrated transport services， and industrial upgrading and relocation are the three main fi elds of focus. In April 2015， the Political Bureau of the Communist Party of China Central Committee approved the Guidelines for the Coordinated Development of Beijing-Tianjin-Hebei Region as a top-level design for the development in this region in a coordinated manner.

Such a national strategy on coordinated development is needed in order to implement optimized regional planning for national development and a well mapped-out geographical distribution of production capacity.