Requirements and goals for deepening reform comprehensively: three adaptations and two objectives
The plenary session outlined requirements for deepening reform comprehensively, emphasizing the need to “better align production relations with productivity, the superstructure with the economic base, and national governance with social development.” The session also defined two objectives for these reforms: first, to “continue improving and developing the socialist system with Chinese characteristics,” and second, to “advance the modernization of the national governance system and governance capacity.” The “Three Adaptations” introduce new standards for aligning production relations with productivity, the superstructure with the economic base, and national governance with social development. The “Two Objectives” focus on both refining the socialist system with Chinese characteristics and enhancing national governance.

Overall framework for deepening reform comprehensively: Six Principles, Seven Priorities, and 15 Key Areas
The resolution outlines the overall framework for advancing comprehensive reform through “six principles” and “seven priorities,” along with detailed plans for “15 key areas.”
Six Principles:1. Uphold the overall leadership of the Party2. Center reforms around the needs of the people3. Continue to uphold fundamental principles and break new ground4. Focus on institutional building as the main line of reform5. Govern the country comprehensively according to the law6. Employ a systematic approach to reform
Seven Priorities:1. Develop a high-level socialist market economic system2. Promote whole-process people’s democracy 3. Strengthen the country’s cultural power4. Enhance the quality of life for the people5. Build a beautiful China6. Ensure a higher level of national safety7. Improve the Party’s leadership and long-term governance capabilities
15 Key Areas:1. Market economic system2. High-quality development3. Support for innovation4. Macroeconomic regulation5. Urban-rural integration6. Opening up 7. People’s democracy8. Rule of law9. Cultural system10. People’s livelihood and security11. Ecological civilization12. National security13. National defense and military14. Party leadership15. Major country diplomacy
These arrangements align with the “five development concepts” (innovation, coordination, green development, openness, and sharing), the “two development principles” (political adherence and people-centeredness), and the “one development coordination” (balancing development and security), while further enriching and expanding them.
Key areas and specific arrangements for deepening reform comprehensively: 
(1) Market mechanism: emphasizing order and fairnessThe plenary session highlighted the importance of balancing the market mechanism by “allowing it to operate freely while also keeping it regulated” and “maintaining market order while addressing market failures.” Building on the commitment to the Two Firm Commitments — firmly consolidating and developing the public economy and firmly encouraging, supporting, and guiding the non-public economy — the session also stressed the need for fairness. It called for ensuring that all forms of economic ownership have equal access to production factors, can compete fairly in the market, and receive equal legal protection.
(2) High-quality development and new quality productive forces tailored to local conditions The plenary session outlined several key areas for enhancing the mechanisms that drive high-quality development. These include fostering new high productive forces, integrating the real economy with the digital economy, advancing the service industry, modernizing infrastructure, and ensuring supply chain security. These areas will be central to the next phase of system and mechanism reforms aimed at supporting high-quality development. Furthermore, the resolution emphasized the need to “improve the system and mechanism for developing new quality productive forces in accordance with local conditions.” This means that future reforms will involve tailored approaches for different regions, allowing for customized system and mechanism designs to effectively support local development of new quality productive forces.
(3) Prioritizing new national system for education, science and talent initiatives The resolution underscores the need to “fully implement the strategies for rejuvenating the country through science and education, strengthening the country through cultivating talent, and driving development through innovation.” In terms of system and mechanism reform, it stresses both the coordinated advancement of integrated reforms and the “improvement of the new national system to enhance the overall efficiency of the national innovation system.” Moving forward, these new national systems and the national innovation framework will be crucial in driving scientific and technological progress.
(4) Enhancing macroeconomic regulation in line with national strategiesThe plenary session highlighted that “scientific macroeconomic regulation and effective government governance are essential for maximizing the benefits of the socialist market economy system.” To enhance the macroeconomic regulation system, it is crucial to “improve the national strategic planning system and policy coordination mechanism, and advance reforms in the fiscal, taxation, and financial systems.” This approach ensures that reforms in fiscal, taxation, and financial areas will be better coordinated to support and align with national strategies.
(5) Urban-rural integration: emphasizing equal exchange and two-way flow, with a focus on county townsThe plenary session emphasized the need for “new industrialization, new urbanization, and comprehensive rural revitalization” to be coordinated, highlighting the importance of “promoting equal exchange and two-way flow of urban and rural factors, narrowing the urban-rural gap, and fostering common prosperity and development in both urban and rural areas.” It also stressed “deepening land system reform.” Building on the December 2022 Central Rural Work Conference’s emphasis on “aligning with the general trend of urban-rural integration, dismantling institutional barriers that hinder the equal exchange and two-way flow of urban and rural factors, driving more development resources and services into rural areas, and eliminating the urban-rural dual structure in counties first,” the focus will shift to ensuring that urban development factors increasingly flow into rural areas. County towns are expected to become key hubs for the next phase of urbanization.
(6) Opening up and major country diplomacy: enhancing international cooperation and shaping global governance The plenary session stressed the importance of “strengthening the capacity to open up and expand international cooperation.” Institutional and mechanism reforms will address areas such as foreign trade, foreign business, foreign investment, and the joint construction of the Belt and Road initiative. Additionally, the session outlined key aspects of major country diplomacy, including “promoting the building of a community with a shared future for mankind and upholding the common values of humanity.” It emphasized action points such as “implementing global development, security, and civilization initiatives” and “participating in and leading reforms of the global governance system.” Beyond safeguarding national sovereignty and security, the focus also includes advancing development interests on the global stage.
(7) People’s livelihood: prioritizing distribution and key areas like employment, social security, and healthcareThe plenary session emphasized “protecting and improving people’s livelihood through development.” In terms of institutional and mechanism reforms, it prioritized “enhancing the income distribution system” while also focusing on “improving employment policies, advancing social security systems, deepening reforms in healthcare, and strengthening population development support and services.” Distribution reform is a top priority for ensuring and improving people’s livelihood, with employment, social security, and healthcare reforms also being key areas of focus. In addition to these priority areas, the session highlighted the importance of system integration and addressed reforms in people’s democracy, the rule of law, spiritual civilization, green development, national security, national defense, and Party leadership.
Attention is given to the short-term economic situation, with plans to expand domestic demand and broaden the scope of risk prevention efforts.The plenary session not only outlined medium- and long-term reform strategies but also addressed immediate economic conditions and risk prevention. It analyzed the current situation and set forth the goal of “steadfastly achieving the annual economic and social development targets.” Key tasks include “implementing macroeconomic policies effectively,” “actively expanding domestic demand,” “developing new quality productive forces tailored to local conditions,” and “accelerating the cultivation of new foreign trade momentum.” Emphasis was placed on short-term measures to boost domestic demand, signaling a strong focus on this area moving forward. Additionally, the session highlighted the importance of coordination between development and security, focusing on risk prevention in critical areas such as real estate, local government bonds, and small and medium-sized financial institutions. It also introduced new measures, including “strengthening public opinion guidance and effectively managing ideological risks,” and “responding to external risk challenges, leading global governance, and actively shaping a favorable external environment,” thus broadening the scope of security and risk prevention efforts.
The author is Wang Han, the Chief Economist of Industrial Securities