The coordination and balance of economic structure is a major theoretical innovation of socialist political economy with Chinese characteristics in the new era

Xie, Di; Kong, Xiao A icle The coo dina ion and balance o economic s uc u e is a majo heo e ical inno a ion o socialis poli ical economy wi h Chinese cha ac e is ics in he new e a China Poli ical Economy (CPE) P o ided in Coope a ion wi h: School o Economics, Nanjing Uni e si y Sugges ed Ci a ion: Xie, Di; Kong, Xiao (2020) : The coo dina ion and balance o economic s uc u e is a majo heo e ical inno a ion o socialis poli ical economy wi h Chinese cha ac e is ics in he new e a, China Poli ical Economy (CPE), ISSN 2516-1652, Eme ald, Leeds, Vol. 3, Iss. 1, pp. 39-55, h ps://doi.o g/10.1108/CPE-05-2020-0006 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/319417 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ The coo dina ion and balance o economic s uc u e is a majo heo e ical inno a ion o socialis poli ical economy wi h Chinese cha ac e is ics in he new e a Di Xie and Xiao Kong School o Economics, Liaoning Uni e si y, Shenyang, China Abs ac Pu pose –The p opo ional dis ibu ion o social labo is a gene al law go e ning human social and economic ac i i ies, also a law disco e ed by Ma xis poli ical economy ha go e ns socialis economic ope a ions and de elopmen based on public owne ship. Design/me hodology/app oach –This law d aws on Ma x’s ision o u u e socie y, bu how i is adop ed is no only subjec o he way a coun y’s economy in e ac s bu also o he in luence o a coun y’s his o ical and cul u al adi ions. Gene a ions o he CPC and s a e leade s since Mao Zedong ha e made un emi ing explo a ions o i s applica ion. Findings –As socialism wi h Chinese cha ac e is ics en e s a new e a, he Pa y Cen al Commi ee wi h Com ade Xi Jinping a he co e adhe es o he s andpoin s, iewpoin s and me hods o Ma xis poli ical economy, d aws om he splendid Chinese adi ional cul u e ha alues in eg i y, peace and ha mony o all, builds on he eali y o China’s socialis ma ke economy de elopmen , has summed up he ea u es o socialis economy de elopmen wi h Chinese cha ac e is ics, and has p oposed he i e-sphe e in eg a ed plan, he ou - p onged comp ehensi e s a egy. O iginali y/ alue –The new de elopmen concep o “inno a ion, coo dina ion, g een de elopmen , openness, and sha ing” o socialism wi h Chinese cha ac e is ics, all e lec ing he Pa y’s deepening unde s anding o coo dina ed de elopmen , he g adual o ma ion o he gene al hough and policy me hods o he coun y’s economic egula ions based on he coo dina ion and balance o economic s uc u e, he con inuous explo a ions o open a new chap e o con empo a y Ma xis poli ical economy, China’s expe ience and wisdom, and he Pa y’s con idence in he heo ies i applies, he oad i akes, i s sys em and i s cul u e. The coo dina ion and balance o economic s uc u e a e a majo heo e ical inno a ion o socialis poli ical economy wi h Chinese cha ac e is ics in he new e a. Keywo ds S uc u e, Coo dina ion, Balance Pape ype Resea ch pape Summa izing he law go e ning he ope a ion and de elopmen o socialis ma ke economy is he his o ical esponsibili y and c ucial mission o socialis poli ical economy wi h Chinese cha ac e is ics. The igh way o wa d is o no only s udy he gene al law o mode n ma ke economy e lec ed in he ope a ion and de elopmen o he socialis ma ke economy, bu mo e impo an ly, o adhe e o he Ma xis poli ical economy s andpoin s, iewpoin s and me hods and o d aw om and sum up he eali y o China’s economic ope a ion and de elopmen , so as o abs ac he undamen al ea u es o socialism wi h Chinese Coo dina ion and balance o economic s uc u e 39 ©Jou nal o No hwes Uni e si y. Published in China Poli ical Economy. Published by Eme ald Publishing Limi ed. This a icle is published unde he C ea i e Commons A ibu ion (CC BY 4.0) licence. Anyone may ep oduce, dis ibu e, ansla e and c ea e de i a i e wo ks o his a icle ( o bo h comme cial and non-comme cial pu poses), subjec o ull a ibu ion o he o iginal publica ion and au ho s. The ull e ms o his licence may be seen a h p://c ea i ecommons.o g/licences/by/4.0/ legalcode. O iginally published in Simpli ied Chinese in Jou nal o No hwes Uni e si y. Funding: Majo P ojec o Na ional Social Science Fund (2015YZD08). The cu en issue and ull ex a chi e o his jou nal is a ailable on Eme ald Insigh a : h ps://www.eme ald.com/insigh /2516-1652.h m Recei ed 8 May 2020 Re ised 15 June 2020 Accep ed 15 June 2020 China Poli ical Economy Vol. 3 No. 1, 2020 pp. 39-55 Eme ald Publishing Limi ed 2516-1652 DOI 10.1108/CPE-05-2020-0006 cha ac e is ics in i s economic ope a ion and de elopmen . Among hese ea u es, he coo dina ion and balance o economic s uc u e is a c i ical one. S uc u e by de ini ion is he alloca ion and a angemen o he componen s o a ce ain objec . Coo dina ion means app op ia e alloca ion, and balance indica es ha he opposi e componen s equal o o se each o he in quan i y o quali y. A ec ed by a ious in e nal and ex e nal ac o s, s uc u es o hings a e cons an ly changing, showing a ious o ms, coo dina ed o no . Ins i u ions, sys ems and mechanisms a e hus designed o coo dina e he uncoo dina ed s uc u e, and o balance o o se he opposi e elemen s. S uc u al coo dina ion and balance is a s a e ha human socie y has been s i ing o achie e o be e su i al and de elopmen . S a emen s o hose om classical Ma xis w i e s o gene a ions o pa y and s a e leade s ha e shown ha seeking s uc u al coo dina ion and balance in economic ope a ion and de elopmen is a consis en pu sui oo ed in he undamen al law o human socie y based on he idea ha social labo is dis ibu ed p opo ionally. 1. The coo dina ion and balance o economic s uc u e is an objec i e equi emen imposed by he law o p opo ional dis ibu ion o labo A iew holds ha Ma xis poli ical economy is an economic heo y ha sees i s mission as c i icizing he capi alis economic sys em and en isioning u u e social economic sys em. To se e his pu pose, Ma x and Engels ha e done in-dep h s udy on he ope a ion and de elopmen o he capi alis economy, bu seldom on he law o u u e socialis economic ope a ion and de elopmen . In ac , when en isaging he cons uc ion o u u e social and economic sys ems, Ma x and Engels, seeing d awbacks o esou ce alloca ion in ma ke economy, pu o wa d he law go e ning socialis economic ope a ion and de elopmen and he pa hs o ealize he o de ly ope a ion and heal hy de elopmen o he economy h ough easonable alloca ion o esou ces, he mos ep esen a i e o which is planned dis ibu ion o social labo in p opo ion. Ma x ound ou ha he combina ion o capi alism and ma ke economy has, on one hand, injec ed in o he ma ke economy unpa alleled i ali y and c ea i i y, bu on he o he , b ough unp eceden ed sho comings and damage. As he igh ly pu i , “Mode n bou geois socie y wi h i s ela ions o p oduc ion, o exchange and o p ope y, a socie y ha has conju ed up such gigan ic means o p oduc ion and o exchange, is like he so ce e , who is no longe able o con ol he powe s o he ne he wo ld whom he has called up by his spells” (Collec ed Wo ks o Ka l M, 2012a). The sho comings o capi alis ma ke economy concen a e in a eas like con adic ion be ween labo and capi al, ela i e o e popula ion, pola iza ion be ween ich and poo , ela i e o e p oduc ion, blind de elopmen , economic i ualiza ion, ecological c isis and dis o ion o he wo ld ma ke . Bu he wo s o all, in Ma x’s wo ds, “ he poin o bou geois socie y is p ecisely ha , a p io i, no conscious social egula ion o p oduc ion akes place”(Collec ed Wo ks o Ka l M, 2012b), whe eas he p opo ional dis ibu ion o social labo is p ecisely he gene al law o human social and economic ac i i ies. The dis ibu ion o o al social labo , o esou ce alloca ion, boils down o he alloca ion o labo ime. Ma x explains socially necessa y labo ime wice in Das Kapi al. The i s ime is in Chap e One o Volume I whe e he s a es ha “ he labo ime socially necessa y is ha equi ed o p oduce an a icle unde he no mal condi ions o p oduc ion, and wi h he a e age deg ee o skill and in ensi y p e alen a he ime”(Ma x, 2004a), which is he socially necessa y labo ime by he i s de ini ion. And he second ime appea s in Chap e 38 “Di e en ial Ren : Gene al Rema ks”o Volume III, whe e he u he elabo a es ha : “ he na u e o he alue o commodi ies asse s i sel , i s de e mina ion no by he labo - ime necessa y in he case o any indi idual p oduce o he p oduc ion o a ce ain quan i y o CPE 3,1 40 commodi ies, o o some indi idual commodi y, bu by he socially necessa y labo - ime; ha is, by he labo - ime, equi ed o he p oduc ion o he socially necessa y o al quan i y o commodi y a ie ies on he ma ke unde he exis ing a e age condi ions o social p oduc ion”(Ma x, 2004b), which is he socially necessa y labo ime by he second de ini ion. This indica es ha he alloca ion o labo ime is ele an in wo closely linked le els. One is in he ela ionship among he en e p ises p oducing he same kind o goods, namely hose om he same indus y, which is simila o he mode n indus ial o ganiza ion s uc u e in which commodi y exchanges a e based on he socially necessa y labo ime by he i s de ini ion. The o he is in he ela ionship among di e en indus ies, o he agg ega ion o he en e p ises p oducing di e en kinds o p oduc s, which is simila o he mode n indus ial s uc u e. This is when he second de ini ion should be applied whe e he ac ual labo ime spen by commodi y p oduce s on p oducing commodi ies is consis en wi h he labo ime ha socie y equi es hem o spend, eaching he balance o supply and demand quan i y and s uc u e o esou ce alloca ion. The con adic ion be ween p i a e and social labo is he undamen al con adic ion in he socie y o ma ke economy. The combina ion o ma ke economy and capi alism has exace ba ed his undamen al con adic ion in he socie y o commodi y economy and highligh s he con adic ion be ween p oduc ion socializa ion and capi alis p i a e possession. This combina ion has made he equi emen o p opo ional dis ibu ion o o al social labo be ealized only by blind compe i ion in he same indus y and among di e en indus ies, o a cycle o “ ial and e o -co ec ion.”I has also caused ela i e o e p oduc ion o be he no mal s a e o economic ope a ion. Spon aneous adjus men by he ma ke mechanism is he o ce pushing he co ec ion om “misma ch” o “ igh ma ch.” Wo ied abou he nega i e impac o misma ched socially necessa y labo ime by he wo de ini ions, he classical Ma xis w i e s once en isioned ha he “ u u e socie y”should undamen ally co ec he misma ch. Ma x belie ed ha in u u e socie y, “an associa ion o ee people”would be o med, “socialized man, he associa ed p oduce s, a ionally egula ing hei in e change wi h Na u e, b inging i unde hei common con ol, ins ead o being uled by i as by he blind o ces o Na u e; and achie ing his wi h he leas expendi u e o ene gy and unde condi ions mos a o able o, and wo hy o , hei human na u e”(Ma x, 2004c). In his so-called associa ion o ee people, “labo ime would ... play a double pa . I s appo ionmen in acco dance wi h a de ini e social plan main ains he p ope p opo ion be ween he di e en kinds o wo k o be done and he a ious wan s o he communi y. On he o he hand, i also se es as a measu e o he po ion o he common labo bo ne by each indi idual, and o his sha e in he pa o he o al p oduc des ined o indi idual consump ion”(Ma x, 2004d). While Engels held ha “ om he momen when socie y en e s in o possession o he means o p oduc ion and uses hem in di ec associa ion o p oduc ion, he labo o each indi idual, howe e a ied i s speci ically use ul cha ac e may be, becomes a he s a and di ec ly social labo . The quan i y o social labo con ained in a p oduc need no hen be es ablished in a oundabou way”and ha “exp ess he quan i ies o labo ...in hei na u al, adequa e and absolu e measu e, ime”(Collec ed Wo ks o Ka l M, 2009a). People a e “wo king wi h he means o p oduc ion held in common, and expending hei many di e en o ms o labo powe in ull sel -awa eness as one single social labo o ce” (Collec ed Wo ks o Ka l M, 2009b). Wi h p i a e owne ship o he means o p oduc ion abolished and social de elopmen unde he di ec con ol o he people, he whole p oduc ion p ocess and p oduc ion ela ions a e hus simple and clea . In An i-D€ uh ing, Engels poin ed ou ha : Wi h he seizing o he means o p oduc ion by socie y, p oduc ion o commodi ies is done away wi h, and, simul aneously, he mas e y o he p oduc o e he p oduce . Ana chy in social p oduc ion is eplaced by sys ema ic, de ini e o ganiza ion. The s uggle o indi idual exis ence disappea s. Then o he i s - ime man, in a ce ain sense, is inally ma ked o om he es o he animal kingdom, and eme ges om me e animal condi ions o Coo dina ion and balance o economic s uc u e 41 exis ence in o eally human ones. The whole sphe e o he condi ions o li e which en i on man, and which ha e hi he o uled man, now comes unde he dominion and con ol o man who o he i s ime becomes he eal, conscious Lo d o na u e because he has now become mas e o his own social o ganiza ion. The laws o his own social ac ion, hi he o s anding ace- o- ace wi h man as laws o Na u e o eign o, and domina ing him, will hen be used wi h ull unde s anding, and so mas e ed by him. Man’s own social o ganiza ion, hi he o con on ing him as a necessi y imposed by Na u e and his o y, now becomes he esul o his own ee ac ion. The ex aneous objec i e o ces ha ha e, hi he o, go e ned his o y, pass unde he con ol o man himsel . Only om ha ime will man himsel , mo e and mo e consciously, make his own his o y –only om ha ime will he social causes se in mo emen by him ha e, in he main and in a cons an ly g owing measu e, he esul s in ended by him. I is he ascen o man om he kingdom o necessi y o he kingdom o eedom. In Ma x’s Das Kapi al, s uc u ally coo dina ed balance was always seen as a easonable s a e o social labo dis ibu ion, while he heo ies, such as hose o su plus alue, o ganic composi ion o capi al, capi al ci cula ion, ep oduc ion o social capi al, economic c isis, eal and i ual capi al, we e no hing mo e han he disp oo o he ope a ions and de elopmen o he s uc u ally uncoo dina ed and imbalanced capi alis economy. Lea ning om he abo e heo ies, he majo socialis coun ies bo n successi ely in he 20 h cen u y all ook he planned economy as hei basic esou ce alloca ion model, and he way o mee he equi emen o planned and p opo ional dis ibu ion o labo . As hese coun ies we e all ela i ely unde de eloped economically, mos o hem had an imbalanced economic s uc u e. Wi h he planned economy and s a e-owned businesses, hose coun ies p io i ized he de elopmen o hea y chemical indus ies, accele a ed indus ializa ion and adjus ed he imbalanced economic s uc u e in he sho es possible ime, con ibu ing signi ican ly o consolida ing he nascen socialis go e nance and laying a solid ounda ion o de eloping he socialis economy. 2. The o ma ion and e olu ion o economic s uc u e coo dina ion and balance heo y in China’s socialis economic ope a ions and de elopmen (1) Explo a ions be o e he e o m and opening up When he People’s Republic o China was ounded, he coun y was in ex eme po e y. How o alloca e social labo p opo ionally and hus e ec i ely alloca ing esou ces o eco e and de elop he na ional economy as as as possible was an u gen issue o be sol ed. Lacking expe ience, China copied he planned economy model o he o me So ie Union and g adually o med a highly cen alized planned economic sys em, which played a his o ically signi ican ole in accele a ing indus ializa ion and es ablishing an independen and comple e indus ial sys em and na ional economic sys em. Since he i s i e-yea plan, China has ca ied ou la ge-scale economic de elopmen p og ams. Wi h he help o he o me So ie Union, 156 la ge indus ial p ojec s we e launched, co e ing majo basic indus ies o he na ional economy like s eel, coal, me allu gy and machine y. P io o he “cul u al e olu ion,”China had gene ally achie ed p ima y indus ializa ion and buil up an independen and ela i ely comple e indus ial sys em and na ional economic sys em. Howe e , wi h he passage o ime, he highly cen alized planned economy g adually exposed i s de ec s such as bu eauc a ic igidi y and lack o incen i es. Mao Zedong had ac ually been conce ned abou his si ua ion om he e y s a , he said, “In he ea ly s ages o Libe a ion we had no expe ience o managing he economy o he en i e na ion. So in he pe iod o he i s i e-yea plan we could do no mo e han copy he So ie Union’s me hods, al hough we ne e el al oge he sa is ied abou i ”(Collec ed Wo ks o Mao Ze, 1999). He c i icized S alin’sEconomic P oblems o Socialism in he USSR:“They speak only o he CPE 3,1 42 p oduc ion ela ions, no o he supe s uc u e no poli ics, no he ole o he people.”“His economics is all desola e, da k and gloomy”(Selec ed Wo ks o Mao Zed, 2003). Mao hen sugges ed o d aw lessons om he So ie Union and p omo e he “second combina ion”o Ma xism-Leninism wi h China’s eali y and c ea e new heo ies and w i e new wo ks. Fo his, he w o e On he Ten Majo Rela ionships in which he p oposed an ag icul u e-based and indus y-led economic sys em, whe e ag icul u e, ligh indus y and hea y indus y we e in coo dina ed de elopmen ; o handle well he ela ionship be ween accumula ion and consump ion wi h holis ic conside a ions, app op ia e a angemen s, and comp ehensi e balance; o ap he ini ia i es o bo h he cen al and local au ho i ies; o deal well wi h he ela ionship be ween indus ies in he coas al egions and hose in he in e io and p omo e common de elopmen ; o handle p ope ly he ela ionship be ween he s a e, he collec i e and he indi idual so all can ha e hei places; o build an independen and ela i ely comple e indus ial sys em and na ional economic sys em, achie e he mode niza ion o ag icul u e, indus y, na ional de ense and science and echnology in an all- ound way, and o mo e China’s na ional economy o he o e on o he wo ld; and o p io i ize sel - eliance and supplemen wi h o eign aid, dispel supe s i ion, de elop indus y and ag icul u e and conduc echnological e olu ion and cul u al e olu ion independen ly, lea n om good expe ience o o he coun ies and d aw lessons om hei bad expe ience (Zhang, 2014). These iewpoin s adhe ed o he Ma xis poli ical economy s andpoin s, iewpoin s and me hods, and we e also deeply in luenced by Chinese cul u al adi ions like mo al in eg i y, kindness, ha mony and impa iali y, e lec ed he hen China’s eali y and p elimina ily o med he p inciple o s uc u al coo dina ion and balance in he ope a ions and de elopmen o socialis economy. Sho ly a e he 8 h CPC Na ional Cong ess, due o he changes o si ua ion a home and ab oad, he Pa y made a “le ”mis ake in i s guiding ideology, s uc u al coo dina ion and balance ailed in p ac ice and he na ional economy was se e ely s icken. (2) Explo a ions since he e o m and opening up Since 1978, China s a ed o ca y ou he e o m and opening up, he en y poin o which was e o ming he highly cen alized planned economy. This, o a la ge ex en , s emmed om he majo heo e ical inno a ion o he socialis commodi y economy. The Decision o he Cen al Commi ee o he Communis Pa y o China on Economic Sys em Re o m, adop ed a he Thi d Plena y Session o he 12 h CPC Cen al Commi ee in Oc obe 1984, pu o wa d new iews such as “cas ing away he adi ional mindse o con adic ing he planned economy wi h he commodi y economy, and unde s anding ha i ’s necessa y o he socialis planned economy o consciously ollow and apply he law o alue, and ha i is a planned commodi y economy buil on public owne ship,”“adop ing a planned economy does no mean i has o be la gely based on manda o y planning,”“enhancing he i ali y o en e p ises is he co e o economic sys em e o m”and “owne ship and managemen igh s can be p ope ly sepa a ed.”Deng Xiaoping spoke highly o his Decision: “i ead like he d a o a ex book on poli ical economy ha in eg a ed he undamen al ene s o Ma xism wi h he p ac ice o socialism in China”(Selec ed Wo ks o Deng Xi, 1993a). “I explains wha socialism is in e ms ne e used by he ounde s o Ma xism-Leninism. The e a e some new heo ies” (Selec ed Wo ks o Deng Xi, 1993b). Based on his unde s anding, China’s esou ce alloca ion in ac s a ed he ansi ion om a planned economy o a ma ke economy. The p inciple o s uc u ally coo dina i e balance o economic ope a ions and de elopmen s a ed o be applied unde he heo e ical p emise o socialis commodi y economy and became inc easingly clea , mani es ed in he ollowing a eas: A g adual app oach o e o m was designed and adop ed o a oid he b un o a adical shock he apy o economic and social de elopmen . The g adual e o m combined op-down Coo dina ion and balance o economic s uc u e 43 measu es wi h bo om-up measu es, o e all coo dina ion wi h local e o ms, dual ack (planned economy and ma ke economy) ansi ion wi h inc emen al e o m i s , e o m wi hin he sys em wi h e o s ou side he sys em, g ow h wi h s abili y, e o m wi h opening up, economic e o m wi h poli ical e o m, cen aliza ion o powe wi h decen aliza ion, and achie ing he goal wi h emphasizing he p ocess, blazing a success ul pa h o ans o ma ion. The unde s anding o he ela ionship be ween e iciency and equi y was deepened, and e o s we e made o build a balanced and easonable income dis ibu ion sys em and achie e common p ospe i y. Deng Xiaoping epea edly s essed he signi icance o common p ospe i y: “The dis inc ion be ween socialism and capi alism is common p ospe i y, no pola iza ion (in income dis ibu ion)”(Selec ed Wo ks o Deng Xi, 1993c). “Capi alism can only en ich less han 10 pe cen o he Chinese popula ion; i can ne e en ich he emaining mo e han 90 pe cen ”(Selec ed Wo ks o Deng Xi, 1993d). “The si ua ion in China is unique, e en i 51 pe cen o he people ge ich i s , he le 49 pe cen , o mo e han 600 million people, will s ill be in po e y, making s abili y impossible. Capi alism is no easible in China, only by building socialism and ealizing common p ospe i y, can socie y be s able and de elop. An indica ion o socialism is common p ospe i y”(Li e a u e Resea ch O ice, 2004a). The 1993 Decision o he Cen al Commi ee o he Communis Pa y o China on Se e al Issues Conce ning he Es ablishmen o a Socialis Ma ke Economic Sys em i s aised he issue o he ela ionship be ween e iciency and equi y, s a ing ha “ he dis ibu ion o pe sonal income should adop a sys em in which dis ibu ion acco ding o wo k is he mains ay and o he ways o dis ibu ion coexis , and gi e p io i y o e iciency wi h due conside a ion o equi y.”The epo o he 15 h CPC Na ional Cong ess in 1997 upheld his p inciple, men ioning ha “by gi ing p io i y o e iciency wi h due conside a ion o equi y, such a sys em is conduci e o op imizing he alloca ion o esou ces, p omo ing economic de elopmen and main aining social s abili y.”The 16 h CPC Na ional Cong ess epo in 2002 s essed again o gi e p io i y o e iciency wi h due conside a ion o ai ness and gua d agains an excessi e dispa i y in income while opposing equali a ianism. In p ima y dis ibu ion, we should pay mo e a en ion o e iciency, b inging he ma ke o ces in o play. In edis ibu ion, we should pay mo e a en ion o ai ness and s eng hen he unc ion o he go e nmen in egula ing income dis ibu ion. A e he 16 h Na ional Cong ess, he issue o social equi y a ac ed inc easing a en ion. The Decision o he Cen al Commi ee o he Communis Pa y o China on Se e al Issues Conce ning he Imp o emen o he Socialis Ma ke Economic Sys em app o ed a he Thi d Plena y Session o he 16 h CPC Cen al Commi ee pu o wa d o “s eng hen he egula ion on income dis ibu ion and a ach impo ance o b idging he excessi e income gap among some social membe s.”The Fou h Plena y Session o he 16 h CPC Cen al Commi ee s essed o “emphasize social equi y, a ionally egula e he dis ibu ion o na ional income, and ake e ec i e measu es o b idge he excessi e income gap among egions and some social membe s o g adually ealize common p ospe i y o all.”The 17 h Na ional Cong ess epo emphasized ha a p ope balance would be s uck be ween e iciency and equi y in bo h p ima y dis ibu ion and edis ibu ion, wi h pa icula emphasis on equi y in edis ibu ion., so as o g adually e e se he g owing income dispa i y and hen b idge he widening income gap. The 18 h Na ional Cong ess epo again no ed ha “a p ope balance should be s uck be ween e iciency and ai ness in bo h p ima y and seconda y dis ibu ion, wi h pa icula emphasis on ai ness in seconda y dis ibu ion.”Wi h he abo e g adual adjus men s, he ela ionship be ween equi y and e iciency has been cla i ied and he income dis ibu ion sys em has u ned mo e a ional. The heo y o socialis ma ke economy was a mo e e iden e lec ion o he poli ical wisdom o he Chinese Communis s and he coun y’s cul u al s eng h. This heo y was no con ined o he indi idual conclusions om he en isioned u u e socie y in Ma xis poli ical economy, and a he same ime adhe ed o i s socialis concep s and p inciples, was no CPE 3,1 44 a ec ed by he clamo o undamen alism in he Wes e n neo-libe al ma ke , and also ga e ull play o he undamen al ole o ma ke in esou ce alloca ion. As ea ly as No embe 1979, Deng Xiaoping said du ing a discussion wi h F ank Gibney, Vice Chai man o he Encyclopedia B i annica’s Boa d o Edi o s and o he s: “I is w ong o main ain ha a ma ke economy exis s only in capi alis socie y and ha he e is only ‘capi alis ’ma ke economy. Why canno we de elop a ma ke economy unde socialism? De eloping a ma ke economy does no mean p ac icing capi alism. While main aining a planned economy as he mains ay o ou economic sys em, we a e also in oducing a ma ke economy”(Selec ed Wo ks o Deng Xi, 1994). In 1985, when mee ing wi h a delega ion o senio US en ep eneu s, he s a ed, “The e is no undamen al con adic ion be ween socialism and a ma ke economy. The p oblem is how o de elop he p oduc i e o ces mo e e ec i ely. We used o ha e a planned economy, bu ou expe ience o e he yea s has p o ed ha ha ing a o ally planned economy hampe s he de elopmen o he p oduc i e o ces o a ce ain ex en . I we combine a planned economy wi h a ma ke economy, we shall be in a be e posi ion o libe a e he p oduc i e o ces and speed up economic g ow h” (Selec ed Wo ks o Deng Xi, 1993e). He s essed again in 1987: “Why do some people always insis ha he ma ke is capi alis and only planning is socialis ? Ac ually, hey a e bo h means o de eloping he p oduc i e o ces”(Selec ed Wo ks o Deng Xi, 1993 ). In 1990, he also poin ed ou : “We mus unde s and heo e ically ha he di e ence be ween capi alism and socialism is no a ma ke economy as opposed o a planned economy”(Selec ed Wo ks o Deng Xi, 1993g). “In he sp ing o 1992, Deng Xiaoping amously pu i in he Sou he n Talk: The p opo ion o planning and ha o ma ke o ces is no he essen ial di e ence be ween socialism and capi alism. A planned economy is no equi alen o socialism, because he e is planning unde capi alism oo; a ma ke economy is no capi alism, because he e a e ma ke s unde socialism oo. Planning and ma ke o ces a e bo h means o con olling economic ac i i y (Selec ed Wo ks o Deng Xi, 1993h). In June 1992, Jiang Zemin pu o wa d he concep o “socialis ma ke economy” ollowing Deng Xiaoping’s sou he n alk spi i . In Oc obe o he same yea , he 14 h CPC Na ional Cong ess epo clea ly se o h he goals o e o m o socialis ma ke economic sys em and s essed ha “ he socialis ma ke economic sys em is in eg a ed wi h he undamen al socialis sys em”(Selec ed Impo an Docume, 1996). Deng Xiaoping poin ed ou : “Whe e does he supe io i y o he socialis ma ke economy lie? In he Fou Insis ences”(Li e a u e Resea ch O ice, 2004b). Jiang Zemin s a ed ha “we a e engaged in a socialis ma ke economy, which is in eg a ed in o he undamen al socialis sys em. We will all in o capi alism wi hou he la e ”(Jiang, 2006a). “Socialis ”is indispensable-no edundan and no supe luous. On he con a y, i is he “eyepoin ,”and i s na u e is he ma ke economy (Jiang, 2006b). And he 17 h CPC Na ional Cong ess epo made “adhe ing o he basic sys em o socialism wi h de eloping he ma ke economy”an impo an his o ical expe ience o he success o China’s e o m and opening up. The sum-up o he scien i ic ou look on de elopmen ep esen ed he g adual ma u i y o he p inciple o s uc u ally coo dina ed balance in he ope a ions and de elopmen o socialis economy and became he guiding philosophy o he uling pa y. En e ing he 21s cen u y, he s uc u al p oblems in China’s economic and social de elopmen became inc easingly p ominen , and he p oblems o imbalance, incomple eness and unsus ainabili y we e accumula ing. Based on he ea u es o his s age, he CPC Cen al Commi ee, a e he 16 h CPC Na ional Cong ess, ca ied ou a se ies o majo heo e ical inno a ions and o mula ed a se ies o p inciples and policies guided by he scien i ic ou look on de elopmen . In 2003, The Decision o he Cen al Commi ee o he Communis Pa y o China on Se e al Issues Conce ning Imp o ing he Socialis Ma ke Economic Sys em pu o wa d o “balance u ban and u al de elopmen , de elopmen among egions, economic and social de elopmen , ela ions be ween man and na u e, and domes ic Coo dina ion and balance o economic s uc u e 45 de elopmen and opening o he ou side wo ld,”“gi e ull play o he ini ia i es o he cen al and local au ho i ies, p ope ly handle he ela ionship among e o m, de elopmen and s abili y,”“pu people i s , es ablish a comp ehensi e, coo dina ed and sus ainable iew on de elopmen , and p omo e he all- ound de elopmen o economy, socie y and people”(Collec ion o Documen s o, 2013). A numbe o impo an e o m measu es in his pe iod applied he p inciple o s uc u ally coo dina ed balance which e lec ed he ea u es o ha s age, including: implemen ing he indi idual household con ac esponsibili y sys em while insis ing on he collec i e owne ship o u al land; s a e-owned en e p ises “delega ing powe and sha ing p o i s,” e o ming he con ac sys em and sha eholding sys em, encou aging he de elopmen o sel -employed and p i a e businesses, and es ablishing a undamen al economic sys em in he p ima y s age o socialism wi h he public sec o as he mains ay and all sec o s o economy g owing oge he ; and o mula ing a ou - egion de elopmen mas e s a egy o de eloping he wes e n egion, e i alizing he old indus ial bases in he no heas , boos ing he ise o he cen al egion, and he p e iously p oposed coas al de elopmen aking he lead. Based on hese, he “12 h Fi e-Yea Plan”p oposed o: p omo e he main unc ional a ea s a egy ha embodied he idea o e i o ial spa ial de elopmen con ol, o make he coun y’s egional policy mo e comple e and ma u e; play an ac i e pa in economic globaliza ion, make ull use o bo h domes ic and in e na ional ma ke s and hei esou ces, while adhe ing o he p inciples o independence and sel - eliance; s ick wi h sus ainable de elopmen and achie e economic de elopmen wi h coo dina ed speed, s uc u e, quali y and e iciency. In summing up his pe iod o his o y, Xi Jinping said ha in he long- e m p ac ice o guiding he people o build socialism, ou Pa y has pu o wa d a numbe o ideas and s a egies on coo dina ed de elopmen . Be o e and a e he ounding o new China, Com ade Mao Zedong c ea ed such ideological and wo king me hods as o e all conside a ion and “playing he piano.”He said: In playing he piano, all en inge s a e in mo ion; i will no do o mo e some inge s only and no o he s. Howe e , i all en inge s p ess down a once, he e is no melody. To p oduce good music, he en inge s should mo e hy hmically and in co- o dina ion. A Pa y commi ee should keep a i m g asp on i s cen al ask and a he same ime, a ound he cen al ask, i should un old he wo k in o he ields. A p esen , we ha e o ake ca e o many ields; we mus look a e he wo k in all he a eas, a med uni s and depa men s, and no gi e all ou a en ion o a ew p oblems, o he exclusion o o he s. Whe e e he e is a p oblem, we mus pu ou inge on i , and his is a me hod we mus mas e . On he Ten Majo Rela ionships was an example o Com ade Mao Zedong expounding he laws o socialis cons uc ion wi h he iew o uni e sal connec ion. In he a icle On he Co ec Handling o Con adic ions Among he People, he u he pu o wa d he policy o “o e all conside a ion and app op ia e a angemen s.”A e he e o m and opening up, Com ade Deng Xiaoping, ha ing obse ed he new si ua ion and p oblems in he new e a, indica ed ha “ he ask o mode niza ion is mul i ace ed, all aspec s need o be comp ehensi ely balanced, a he han add essed sepa a ely.”In di e en s ages o he e o m and opening up, Com ade Deng Xiaoping de eloped a se ies o “wo king on bo h on s”s a egic policies. Com ade Jiang Zemin men ioned ha in mo ing socialis mode niza ion o wa d, 12 majo ela ionships bea ing o e all signi icance mus be p ope ly handled. Com ade Hu Jin ao p oposed he comp ehensi e, coo dina ed and sus ainable de elopmen . The 18 h CPC Na ional Cong ess d ew up a i e-sphe e in eg a ed plan o socialism wi h Chinese cha ac e is ics, and hen he ou -p onged comp ehensi e s a egy was o mula ed. All hese ha e e lec ed ou deepening unde s anding o coo dina ed de elopmen and he me hodological signi icance o ma e ialis dialec ics in sol ing China’s de elopmen p oblems (Com ade Xi Jinping’s Rema, 2016). CPE 3,1 46 possible o ms o s a e egula ion, i depends on he social economic o m (whe he i is a p oduc economy o ma ke economy). The socialis ma ke economy is a o m o economic sys em ha o ganically combines he basic socialis economic sys em wi h he ma ke economy, whe e he necessi y o dis ibu ing social labo in p opo ion acco ding o he p inciple o economic s uc u e coo dina ion and balance emain unchanged. Ano he iew is ha he “in isible hand”o he ma ke should be b ough in o ull play unde he ma ke economy, and unde he ma ke mechanism, o e capaci y and excess p oduc s a e no mal and will be au oma ically esol ed. The e o e, no in e en ion is equi ed be o e, du ing and a e he economic ac i i ies o p e en and sol e hose issues. Some e en hink ha all kinds o indus ial policies implemen ed by he s a e will ende he economic sys em “planned economy in disguise”and he e o e a e unnecessa y. I he s a e is equi ed o in e e e in i s economy, i is only a empo a y measu e o sol e ma ke ailu e. Howe e , unde he condi ion o socialis ma ke economy, he basis o he s a e o egula e he economy is no only ma ke ailu e, ins ead, socialis public owne ship is he basis o he p opo ional dis ibu ion o social labo , and is also he basic condi ion o he coo dina ed and balanced economic de elopmen . The e o e, whe he he ma ke ails o no , socialis coun ies should ca y ou economic adjus men and egula ion on he basis o public owne ship in acco dance wi h he socialis p oduc ion pu pose and he s a egic needs o na ional economic and social de elopmen , so as o achie e economic ans o ma ion and s uc u al op imiza ion. In o de o sol e he conside able imbalance p oblems in China’s economic s uc u e, i is necessa y o deepen he e o m and s eng hen he e ec i e ma ke so ha he ma ke can play a decisi e ole in esou ces alloca ion. Acco ding o he socialis concep and p inciple, i is also he basic equi emen o he ope a ion and de elopmen o he socialis ma ke economy o make use o he ad an ages o public owne ship, e ec i ely play he ole o s a e egula ion, and make su e an e ec i e ma ke and a p oac i e go e nmen ein o ce each o he . Pu suing he coo dina ion and balance o he economic s uc u e should be he basic di ec ion o he egula ion o a “p oac i e go e nmen .” Re e ences (2009a), Collec ed Wo ks o Ka l Ma x and F ied ich Engels, People’s Publishing House, Vol. 9, p. 326. (2009b), Collec ed Wo ks o Ka l Ma x and F ied ich Engels, People’s Publishing House, Vol. 2, p. 126. (2012a), Collec ed Wo ks o Ka l Ma x and F ied ich Engels, People’s Publishing House, Beijing, Vol. 1, p. 406. 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Co esponding au ho Di Xie can be con ac ed a : [email p o ec ed]m Fo ins uc ions on how o o de ep in s o his a icle, please isi ou websi e: www.eme aldg ouppublishing.com/licensing/ ep in s.h m O con ac us o u he de ails: [email p o ec ed] Coo dina ion and balance o economic s uc u e 55