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Despite the complexity of the process China should not swerve off the path of reform which started 28 years ago, said a signed article to be published in Monday's People's Daily, the country's most influential newspaper.

 

The article says China must continue to go in the right direction on the road to reform. The socialist market economy should be closely linked to the fundamental system of socialism giving improved focus to the merits of the market economy and the superiority of the socialist system.

 

The article comes as complaints about high medical bills, difficulties in ensuring quality schooling for all children, high housing prices and employment opportunities get louder.

 

"Reform and opening up has invigorated China," states the article signed by Zhong Xuanli. "It's an important choice which determines China's destiny today." 

 

The article says reform has removed obstacles that hindered economic growth and helped China establish an initial system of socialist market economy.

 

It says the transformation from a planned economy to a socialist market economic system in China has resulted in historic breakthroughs in its reform and opening-up drive. It had ushered in a new period of comprehensive economic, political, cultural and social development.

 

"Through reform and opening up, the comprehensive national strength of China has increased greatly; the Chinese people have made a historic shift in living standards from subsistence to moderate prosperity in general; the Chinese society has maintained stability for a long time," says the article. It adds that China now enjoyed a good government and a united people and China's international influence and cohesiveness of the nation had been greatly enhanced.

 

The glorious achievements in the past 28 years had demonstrated that reform is the only road for China to achieve prosperity, it says. "Without pushing forward reform, China could not make further progress, nor could it keep past achievements," it observes.  

 

The article attributed China's successes in overcoming the SARS outbreak and Asian financial crisis in recent years to its reform which had greatly enhanced the country's material and spiritual strength.

 

However, China still had a long way to go before establishing a perfect socialist market economy. The fundamental approach to solving contradictions and problems on the road ahead lay in deepening reform, the article says.

 

It states as China's reform has now entered a crucial period, the urgency and complexity of reform calls for increased determination and confidence to advance it.  

 

It says China should seek to make new breakthroughs in reforms of some key areas and links in the 11th Five-Year Plan period (2006-2010).

 

China should give wider scope to market forces in distribution of resources, improve the administrative system, push forward reform of state-owned enterprises, improve the financial, taxation and banking systems, step up construction of a modern market system and raise the level of opening up, it adds.  

 

"To succeed in reform, it is important to forever keep to the right direction," says the article.

 

It states the socialist market economy was combined with the fundamental system of socialism. The two systems should be linked closely to give improved exposure to the merits of the market economy and the superiority of the socialist system.

 

The article quoted former President Jiang Zemin as saying that "socialism" was indispensable in the socialist market economy as it indicated the character of China's market economy.

 

The basic economic system, with public ownership in domination and diverse forms of ownership developing side by side, should be upheld and improved, the article says.

 

The income distribution system, which mainly follows the principle of "to each according to his work" while allowing coexistence of multiple distribution methods, should be upheld and improved.

 

"On the basis of economic development, more attention should be given to social equity," says the article. Macro-regulation of the economy should continue and be improved to realize balanced economic growth and optimization of the economic structure, it continues.  

 

It says China should improve its decision making in the reform process to make it more scientific. It adds that "people's fundamental interests" should be the starting point of reform and basis for decisions. The reform should take care of the interests of and concerns of various sides to win support of the general public.

 

It calls for better coordination of reform measures in various fields and notes that this is a comprehensive reform that concerns the economy as well as political, cultural and social systems.

  

It seeks properly balancing reform, development and stability, which had been an important experience for smoothly pushing forward China's reform, opening up and socialist modernization.

 

"Reform should be the driving force, development the goal while stability the prerequisite," it says.

 

It says the intensity of reform and speed of development should be coordinated with the support of the society.

 

(Xinhua News Agency June 5, 2006)