【Policy Report No. 169】Zheng Yongnian: Problems and Countermeasures in the Construction of A Unified National Market
Authored on:2022-08-29
Keywords China’s unified National Market Economic Restructuring Circulation of Elements

Abstract

China’s exploration of constructing a united national market dates back to the 1980s, when the reform of China's political and economic system was in full swing, but the reform was followed by problems such as excessive provincial power, local protectionism and a “vassal economy”, which seriously restricted the development of the market economy, especially the coordinated development of different regions. In the external context of Gorbachev's reforms in the Soviet Union and the soaring economic model of the “Four Little Dragons” in East Asia, a debate on “new authoritarianism” emerged in China at that time, focusing on how to break up the local “vassal economy” and establish a united national market. The concept of a “unified national market” was formally introduced in China at the 20th National Congress of the Communist Party of China held in 1992 following Deng Xiaoping's southern tour, where the concept of a “socialist market economy” was formally established. In the construction of the socialist market economy system, it was mentioned that an open and unified market economy should be established. After the 14th National Congress, almost all Party Congresses and government documents included statements related to the construction of an open and unified market.

On April 10, 2022, the CPC Central Committee and the General Office of the State Council issued the Opinions on Accelerating the Construction of a Unified National Market. It calls for accelerating the establishment of the rules of a unified national market system by breaking local protection, market segmentation and the critical blockages that restrict economic circulation, promoting the flow of commodity resources in a wider scope, and accelerating the construction of an efficient, standardized, fairly competitive, and fully open national unified market. This is the first systematic expression by the CPC Central Committee and the State Council on the construction of a united national market,  which fully reflects the great importance that the CPC Central Committee and the State Council attach to the construction of a united national market.

Research Questions

  • Specific problems faced by the construction of a unified national market
  • Specific measures for constructing a unified national market