A staff member at the Beijing Bank of Communications branch asks a visitor to open a digital RMB wallet on a mobile phone, June 16, 2021. (Photo / Xinhua)

China’s latest move to release a plan to drive comprehensive reforms in market-based factor allocation will push its resolve to build a high-level market system and promote high-quality development, they said. said experts.

The General Office of the State Council on Thursday released the document which aims to deepen reforms of market-based factors to give a strong impetus to economic and social development.

As part of the plan, China will take key steps to promote more efficient land allocation, encourage the rational and smooth movement of labor, and support the digital currency pilot program for use in retail transactions. , daily life and payment for government services.

More efforts will also be made to explore rule-making on data flow and improve the market-based trading mechanism for resources such as electricity and natural gas, and emissions allocation. of carbon.

The plan sets a target that testing will be essentially completed by 2025, and the reform of market-based factor allocation will be a historic achievement, setting an example for the optimization of the national system.

Liu Quanhong, director of the International Economic Research Institute of the Chinese Academy of Macroeconomic Research, said the new plan will help improve the efficiency of the allocation of different factors of production and promote the formation of a market. unified interior.

“It will also help advance the reform of market-based factor allocation and remove deep-rooted systemic and institutional barriers,” Liu added. “The pilot reforms will play a key role in stimulating the vitality of market players and promoting high quality economic and social development.

The plan follows the Central Economic Labor Conference held last month, which said China will boost development with reform and opening-up policies and lead comprehensive reforms in the distribution of labor factors. market-based production.

In fact, Xi Jinping’s Reflection on Socialist Economy with Chinese Characteristics for a New Era offers China’s response to managing government-market relations.

A pivotal Chinese Communist Party meeting chaired by Xi Jinping, secretary general of the CPC Central Committee, in 2013 recognized the market’s “decisive” role in resource allocation, changing the tone of the “fundamental” role it plays since 1992..

In the meantime, the government should play its role better, the meeting decided. He added that the heart of reforming China’s economic system is to properly manage the relationship between government and the market.

Cui Weijie, deputy director of the Chinese Academy of International Trade and Economic Cooperation, said the new plan will make full use of the market’s decisive role in resource allocation, giving a strong impetus to high-level development. quality.

“The plan attaches great importance to removing obstacles that hinder the free and orderly movement of factors, marking a key step in promoting smooth internal circulation. And it will also help to create the new economic development model of “dual circulation” which market as a pillar, while the domestic and foreign markets complement each other. “

Cui’s point was echoed by Zheng Lei, chief economist at Glory Sun Financial Group, who said the new plan follows a series of government measures to cultivate the market, demonstrating the government’s strong determination to deepen. continually reforms and opening up.

Citing new steps mapped out by the plan, such as promoting digital currency pilot programs and sharing credit information, he expected the digital renminbi to be widely used in the country and a mechanism for finance small and medium-sized enterprises. easier and more affordable.

“Once the pilot projects are implemented and then extended to the whole country, it will create new sources of economic growth,” said Yang Jinghao, chief economist at Kangkai Data Technology.