A press conference on the outcomes of the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China takes place in Beijing on October 30 (XINHUA)

The Communist Party of China (CPC) Central Committee held its first press conference on October 30, introducing and elaborating on the guiding principles of the 19th CPC Central Committee's Fifth Plenary Session. Officials from relevant departments were invited to brief on the session, explain the content of the Proposals of the CPC Central Committee for Formulating the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 and answer questions from the media.

Q: What are the new content of the CPC Central Committee's proposals for the 14th Five-Year Plan that concerns issues relating to people's livelihoods?

A: The people aspire to live a better life and the proposals for the 14th Five-Year Plan answer the aspiration of millions of people, raising major requirements and measures for the improvement of people's well-being and their quality of life. In terms of employment, we will look to strengthen employment policies, create more jobs, improve support systems for securing employment for key groups, and realize more adequate, higher-quality employment. In terms of income, we will raise levels of income, increase the income of urban and rural residents via multiple channels, and make sure that income increases keep pace with economic growth. In terms of education, we will build a higher-quality education system, promote balanced development and urban-rural integration in compulsory education, and push a higher level of education throughout the nation. In terms of culture and sport, we will organize extensive cultural and fitness activities open to the general public. In terms of healthcare, we will comprehensively promote the building of the Healthy China initiative, speed up the expansion of quality healthcare resources while balancing the distribution of such resources between different regions, and generally improve the healthcare system. In terms of elderly care, we will implement the national strategy of proactively addressing the issue of an aging population, boost long-term and balanced development of the population, and improve basic elderly care service systems. In terms of social security, we will improve the multi-layered social security system and make sure that it covers the entire nation, maintains coordination between urban and rural areas, and is fair, uniform, and sustainable.

In the 14th Five-Year Plan period, we will follow the requirements of the proposals to firmly promote common prosperity, insist on the system under which distribution according to that work is dominant and a variety of modes of distribution coexist, increase the share of work remuneration in primary distribution, improve mechanisms for reasonable wage increases, make efforts to raise incomes among lower-income groups, and expand the size of middle-income groups. We will also improve the system of distribution according to factors of contribution and production and increase middle-to-low-income groups' income payments. We will perfect the redistribution mechanism and improve the intensity and accuracy of measures for adjustment such as taxation, social security, and transfer of payments. We will let the tertiary distribution mechanism play its role and promote charity work. We will encourage consumption with comprehensive measures; ride the trend of consumption upgrades; promote green, healthy, and safe consumption; develop service consumption, and encourage the development of new models and forms of consumption. We will push for the management of consumer goods, including cars, to shift from purchase management to usage management systems, and we will push for the healthy development of housing consumption. We will promote contact-free services, boost the integrated development of online and offline consumption, and tap urban and rural consumer markets. We will implement an on-pay leave system and increase consumption during holidays. We will improve the environment for consumption and offer stronger protections for consumer rights to let consumption better play its fundamental role in driving economic development, which is also a way to improve and secure people’s livelihoods.

Q: The Fifth Plenary Session identifies self-reliance and self-strengthening in science and technology as being the strategic support to China's national development, and stresses that China will uphold the central role of innovation in its modernization drive. What specific measures will be adopted to achieve this self-reliance and self-strengthening in science and technology and promote innovation?

A: The Fifth Plenary Session stresses that China will uphold the central role of innovation in its modernization drive and identifies self-reliance and self-strengthening in science and technology as being the strategic support to China's national development. We know that scientific and technological innovation has always played an important role in national development and human progress, and its role is becoming increasingly prominent and important. As China enters a new stage of development, the country needs new development, and needs to foster a new development paradigm. Therefore, the Fifth Plenary Session put forward the aforementioned Proposals, placing self-reliance and self-strengthening in science and technology at the top of the all planned tasks, and making special arrangements. It is the first time that the CPC has done so in the history of formulating a five-year plan. It is also a strategic arrangement made by the CPC Central Committee with Comrade Xi Jinping at its core in keeping abreast of the trend of world development, keeping in mind the current situation and adopting a long-term perspective.

Looking back, the CPC Central Committee came up with the innovation-driven development strategy at the 18th CPC National Congress, and put forward taking innovation as the primary driving force for development at the 19th CPC National Congress. It has been continuously carrying forward and evolving its strategies, guidelines, plans and arrangements for scientific and technological innovation. The important positioning and arrangements regarding scientific and technological innovation put forward at the Fifth Plenary Session are based on the constant pursuit of seeking truth from facts and the long-term theoretical innovation and practices of the CPC. The various moves have fully grasped the trend of global scientific and technological development, and adhered to the path of independent innovation with Chinese characteristics. They also fit the characteristics and tasks of scientific and technological innovation in the country in the new era. In fundamental respects, we need to make full use of scientific and technological innovation, and ensure it plays its key role in the great changes unseen in a century and use it to support and guide the great rejuvenation of the Chinese nation. Faced with these changes in China and worldwide, we need to apply a new development philosophy, promote high-quality development and foster a new development paradigm. More than ever, we need solutions in our approach to scientific and technological innovation, and depending on innovation as the primary driving force. Only by relying on scientific and technological innovation, can we develop opportunities amid crises, open up new areas amid change, constantly expand new space for development, and seek to shape new advantages for growth. That is why scientific and technological innovation is such an important feature of the new development paradigm.

China's scientific and technological strength is now moving from seeking accumulation in quantitative terms to taking great leaps forward in quality, from individual breakthroughs to achieving systematic progress, laying a solid foundation for economic growth, and improvement of livelihood and national security. Looking ahead, we should have more confidence in innovation, and seize opportunities in the new technological and industrial revolution. Following the principle that the scientific and technological development must target the frontiers of global science, serve the economic battlefield, strive to fulfill the significant needs of our country and benefit people's lives and health, we should adhere to both scientific and technological innovation and institutional innovation, cultivate scientific and technological strength, and improve our systematic capacity in scientific and technological research and emergency research. We need to make overall arrangements for achieving significant breakthroughs in basic research and key and core technologies, and constructing a systematic, sound and efficient national scientific and technological innovation system. We also need to motivate scientific and technological personnel and innovators. In this way, we seek to move faster on the new path of innovative development featuring excellent talents, cutting-edge technologies, outstanding industries and a strong economy and nation, and move faster to become one of the leading innovation-oriented countries and a scientific and technological power in the world.

Self-reliance and self-strengthening in science and technology can be traced to the same originating source as self-reliance and independent innovation we have been emphasizing. Self-reliance and self-strengthening do not contradict with openness and cooperation; instead, they form a dialectical unity. Openness and cooperation are integral to the path of independent innovation with Chinese characteristics. Self-reliance and self-strengthening are the prerequisite and foundation for opening up and cooperation on the basis of equal treatment and mutual respect. At the same time, China's scientific and technological innovation has never been, and will never be, conducted behind closed doors. Over the past 40 plus years of reform and opening up, openness, cooperation, exchanges and mutual learning have played an important role in promoting China's scientific and technological innovation. We have always emphasized pursuit of scientific and technological innovation with a global vision, and actively integrated ourselves into the global innovation network. Now, China’s scientific and technological development and innovation is becoming increasingly inseparable from the rest of the world, and the world is also becoming increasingly in need of China in achieving scientific and technological progress. On the one hand, we need to improve our ability of independent innovation and run our own affairs well, because key and core technologies cannot be acquired or purchased. On the other hand, we hope to learn more of the advanced experience from the rest of the world, and share more of China's scientific and technological achievements and contribute more Chinese wisdom to tackle global challenges.

Looking forward, China will make greater strides in opening up and cooperation in science and technology. We are ready to carry out dialogue and exchanges with other countries in regard to science and technology policies, development plans, research ethics, and fields of common concern in science and technology as well as innovation. In regard to opening up and cooperation, we will seek common ground while reserving differences, and strive to form an increased consensus on international science and technology governance. At the same time, we will focus on global issues such as climate change, energy and resources, and public health, set up a scientific research fund to support joint research with countries across the world. We will further improve the legal and policy environment for scientific and technological innovation in China, strengthen the protection of intellectual property rights, and provide equal opportunities and convenient conditions for overseas talents to work and start businesses in China, striving to make China a favored destination for global innovators and entrepreneurs.

Q: Is China's new development paradigm of "dual circulation" a response to international pressure? During the 14th Five-Year Plan period and in the years leading up to 2035, will China shift its focus to development of its "domestic circulation," thereby diminishing efforts to open-up to the outside world?

A: Fostering a new development paradigm is a strategic decision taken by General Secretary Xi Jinping and the CPC Central Committee in order to actively tackle the changing international and domestic situations, upgrade China's economic development in a timely manner, and foster new advantages in international economic cooperation and competition. It has played a key role in the creation of the proposals.

Economic globalization is currently encountering headwinds, unilateralism and protectionism are rising, the COVID-19 pandemic has brought about extensive and profound impacts, and traditional international economic circulation has been substantially weakened, or even hampered. Against this backdrop, strengthening domestic circulation allows us to enhance the resilience of our economic development, and at the same time increase international circulation, thus allowing the two circulations to boost one another. One commonality between major economies is that domestic circulation can suffice. Like other major economies, China, as the world’s second largest economy, has made domestic supply and demand the mainstay of its economic circulation. Since the 2008 international financial crisis, China has achieved remarkable progress in rebalancing its economy. For instance, China's current account surplus plunged from around 10 percent of GDP in 2007 to approximately 1 percent in 2019. China's degree of foreign trade dependence—the ratio of foreign trade volume to the country's GDP—has dropped from over 60 percent to just over 30 percent. Therefore, China's economic growth is increasingly dependent on domestic consumption and investment.

China has been highlighting the basic role of consumption and the key role of investment since the 18th CPC National Congress held in 2012. In recent years, the contribution of domestic demand to economic growth has basically remained over 90 percent, with the ratio exceeding 100 percent in some years. Therefore, the driving force of the domestic circulation has been remarkably strengthened. Therefore, the adoption of the new development paradigm—whereby domestic and foreign markets can boost each other, with the domestic market as the mainstay—signifies that the Party has precisely grasped and put into practice the laws governing economic development. This is a proactive rather than a reactive move; it is a long-term strategy, not a stopgap measure.

The new paradigm stresses dual circulation rather than domestic circulation on its own. By saying domestic circulation, we mean "wide circulation" based on a unified domestic market, rather than self-centered "small circulations" based on local markets. It does not mean we will foster separate circulations in each and every province, city or county.

To foster a new development paradigm, we should first adhere to expanding domestic demand as the strategic foundation, facilitate national economic circulation, and remove various barriers to production, distribution, logistics and consumption. To remove these barriers, we should deepen supply-side structural reform and achieve major breakthroughs in key areas and linkages. We should increase research into core technologies and ensure the safety and stability of industrial and supply chains. We should optimize the structure of income distribution to expand the size of the middle-income group. We should develop a modern logistics system, improve the consumption environment to promote consumption upgrading, and take full advantage of the country's huge market. In this way, not only can we boost the domestic economy, we can also create more market opportunities for the rest of the world.

We should ensure deeper involvement in the international circulation, which is an integral part of China's efforts to establish a new development paradigm. We should promote higher levels of opening-up and expand market entry for foreign-invested enterprises to better use resources from both domestic and international markets. Markets are a scarce global resource. We should build a market-oriented and international business environment based on the rule of law. Relying on the strong domestic market, we should turn the country into a magnet for high-quality global resources, and make China a fertile land for foreign investment and enterprises, thus allowing domestic and international markets to boost each other and promoting mutual benefits and common prosperity with other countries. Therefore, fostering a new development paradigm by no means signifies the weakening of the country's efforts to open up. On the contrary, China will see a steady rise in its foreign trade volume, the utilization of foreign capital, as well as its outbound investment, and China's international standing will also continue to rise, which is an important hallmark of major economies.

Q: According to the Communiqué of the Fifth Plenary Session of the 19th CPC Central Committee, the session raised a set of long-range objectives for China to basically achieve socialist modernization by 2035. By then, China's economic and technological strength and composite national strength will have increased significantly. However, tensions between China and the United States grow, economic decoupling between the two countries seems likely. In such circumstances, how will China achieve the long-range objectives set for 2035?

A: It will take China 15 years, or three Five-Year Plan periods, to basically achieve socialist modernization by 2035. The 14th Five-Year Plan covers the first five years, during which the country will embark on a new journey to fully build a modern socialist China. The Proposals put concentration on China's development in the 14th Five-Year Plan period as well as outline the long-range objectives through the year 2035. By doing so, the Proposals chart the course for continued progress; achieve popular consensus; outline how to link, coordinate, and integrate short, medium, and long-term development objectives; and help strengthen strategic consistency. In 1995, the CPC Central Committee drafted proposals for the 9th Five-Year Plan, which also included the long-range objectives through to the year 2010.

To achieve the long-range objectives set for 2035, we do need an appropriate external environment. Currently, as the international environment becomes increasingly complex and uncertainty and instability notably increase, a more severe and challenging situation arises. However, we believe that peace and development remain the theme of our times and the will of the people. Despite strong headwinds, the world will continue to move toward greater economic globalization amid twists and turns. Nowadays, the world we live in is becoming a global village, and the economic ties between China and the U.S., the world's two largest economies, are determined by the complementarity of the two sides' economic structures as well as the openness of the global economy. Under these circumstances, complete "decoupling" between China and the U.S. is utterly unrealistic, will do neither side any good, and in turn will also harm the world. In fact, few people want the two sides to decouple, while far more opt to pursue sincere cooperation. In the third quarter of this year, despite the impact of the COVID-19 pandemic, China-U.S. bilateral trade volume increased by 16 percent year on year. So we should not be afraid of the dark clouds blocking our view; instead, we should continue to adhere to the principles of peace, development, and win-win cooperation as well as safeguard multilateralism, stay on the right path of history, and actively create an enabling environment globally.

To achieve the long-range objectives set for 2035, the key is to improve capacity-building. We should keep in mind the fact that China remains in the primary stage of socialism and strive to run our affairs well. Of course, many complicated tasks await, among which the three most important are reform, opening-up, and innovation.

Reform is a strong power driving development. Through efforts to deepen reform across the board, we will build a high-level socialist market economy that will fully unleash the vitality of the 1.4 billion Chinese people, enabling them to create more social wealth, pursue better lives, and ultimately achieve common prosperity for everyone. Such a powerful force that promotes China's modernization cannot be stopped.

Opening-up is the right choice to promote development. General Secretary Xi Jinping has stressed on various occasions that openness brings progress while seclusion leads to backwardness. This is also an important lesson drawn from modern Chinese history. So whatever changes in the international landscape, China will unswervingly adhere to its fundamental state policy of opening-up. Through high-level opening-up, China will provide a larger market with more opportunities to the world, which will not only improve the development of China but also create a fairer and more equitable global economic governance system to push forward the building of a community with a shared future for mankind.

Innovation is the primary driving force for development. We will undertake self-reliance in scientific and technological development to strategically support the country's overall development, step up efforts to build a strong country in science and technology, and create new strengths for China's development in all respects to provide strong support mechanisms for the high-quality development of the economy and people's living standards.

The Proposals have been comprehensively deployed in all of these aspects. We believe that as long as we deliver a good performance in key areas such as reform, opening-up, and innovation, we will achieve the long-range objectives set for 2035.