The 13th Five-Year Plan released during the Two Sessions set a blueprint for the Chinese economy in the coming years. Because theory supports practice, the academic sector needs to continue to develop an economic theory with Chinese characteristics, thus fueling research on the Chinese economy.

Basis

Theory is also derived from practice. The Chinese economy, over years of development, has offered rich material for economists to conduct theoretical research and development. Gu Hailiang, a professor from Peking University, said: “Theory can be perfected by the accumulation of practice. Also, practice can be promoted through theoretical creativity.”

Academic understanding and research on the Chinese economic system developed along with reform under the guidance of Marxist theory. “Since the reform and opening-up, the economy has gone through comparative economics and transition economics all the way to political economics,” said Zhang Yu, a professor of economics at Renmin University of China.

Economists have made achievements in researching the model of the Chinese economy with Marxist political economics. “The model is a theoretical outline of the economic path, methods and system adopted by China in terms of the economic structure and operation,” said Zhu Qiaoling from the School of Economics at the Zhongnan University of Economics and Law.

A lot of valuable outcomes were derived from analyzing and explaining general and special circumstances of the reform in the Chinese economic system, including the transition of the Chinese rural land system, and the difficulties and prospects of reform in the Chinese economic system.

Huang Shao’an, a professor of economics from Shandong University, said that some of the outcomes are theoretical hypotheses drawn from Chinese economic case studies. Some studies help economists distinguish the right hypotheses from the wrong ones.

Foothold

A large number of Western economic theories have been introduced into China since the 1990s. Some scholars blindly believe in these theories and attempted to implement them, leading to severe consequences. The over-emphasis on the hypothesis of “economic man” and the effectiveness of “private property rights” are among the problems. Also, the blind pursuit of gross domestic product strained resources and destroyed the environment.

Zhu said, scholars from the West have indeed accumulated abundant theoretical outcomes in contemporary economics, which have guided capitalist markets. Meanwhile, the theories were rooted in developed economies. If they are directly applied to China without taking account of state and historic circumstances, even worse consequences will occur.

Marxist political economics dictates that the circumstances of the national economy should be considered. Chinese economists should make efforts to discover and draw lessons from practices in socialist economic reform. That is the source of theoretical awareness and confidence.

Systematic theory

China’s economic model has drawn increasing attention from the world.

Renowned economist Joshua Cooper Ramo said that the Chinese model not only suits the Chinese economy, but also fits other developing countries that struggle for economic growth and better living conditions. A number of countries are making efforts to integrate into the international order without compromising their independence. The “Beijing Consensus” just offers them a new alternative.

Nobel Prize winner Joseph Stiglitz said that “China’s economic model” is an excellent textbook for economics.

The practice of the socialist economy with Chinese characteristics should be researched from historic, global and comparative perspectives, Zhu suggested.

A new model of development which is creative, coordinative, green, open and shared was put forward. It is in line with the core view, basic methods and standpoint of political economics with Chinese characteristics.

The new model of development offers practical and theoretical support for building a moderately prosperous society. It also lays a solid foundation for the “systematic economic theory,” thus strengthening academic narrative of political economics with Chinese characteristics, said Gu.

Zhang Qingli and Wu Nan are reporters at the Chinese Social Sciences Today.