Xi on Self-Revolution - What the Party is Thinking about When Coordinating the Relationship between Demand & Supply

Here are the key reports and articles that I found noteworthy from the People’s Daily’s edition on Monday, December 16, 2024.

Just about the entire paper today is dedicated to featuring announcements of candidates for 全国道德模范 national moral models. Consequently, there are only two pieces that are worth noting in today’s edition.

First, there is a report on Qiushi publishing an article drawn from Xi Jinping’s speech at the Third Plenary Session of the 20th CCDI on January 8, 2024. This was the meeting that framed Xi Jinping’s thoughts on Self-Revolution.

In the Qiushi piece, Xi begins by framing the self-revolution of the Party as the second answer for the Party to successfully break free from the historical cycle of rise and fall, and ensure that it never degenerates, changes color or flavor. The first answer, of course, was Mao’s framing that “let the people supervise the government”, i.e., democracy.

Xi said:

“The ideals pursued by our Party are lofty and sacred, and the missions it shoulders are arduous and demanding. Only by examining ourselves against the requirements of the times, remaining vigilant with a strong sense of crisis awareness, and forging ourselves with the spirit of self-revolution can we continuously enhance our leadership capacity and governance level, ensuring that the Party never degenerates, never changes colour, never loses its flavour, and always remains the strong leadership core of the socialist cause with Chinese characteristics. At the same time, it must be recognised that, with changes in the situation and tasks, shifts in the external environment, and transformations within the Party’s membership, various contradictions and problems will inevitably arise within the Party. It is essential to have the courage to turn the blade inward, promptly eliminate various negative influences, and ensure that the party always remains full of vigorous life and exuberant vitality. This is the reason why we must advance the Party’s self-revolution.” 我们党追求的理想崇高而神圣，肩负的使命艰巨而繁重，只有以时代发展的要求审视自己，以强烈的忧患意识警醒自己，以自我革命精神锻造自己，不断提高领导能力和执政水平，才能确保党始终不变质、不变色、不变味，始终成为中国特色社会主义事业的坚强领导核心。同时要看到，随着形势任务、外部环境变化和党员队伍自身变化，党内不可避免会出现各种矛盾和问题，必须以刀刃向内的勇气，及时消除各种消极影响，确保党始终充满蓬勃生机和旺盛活力。这就是为什么要推进党的自我革命的道理所在.

Xi added:

“The courage to carry out self-revolution is the most distinctive character and greatest strength of our Party. The nature, purpose, original intention and mission of the Party determine that our Party always represents the fundamental interests of the broad masses. By not seeking private interests, we gain the thorough spirit of self-revolution, enabling us to seek the root and greater good, adhere to truth and correct mistakes, and dare to examine ourselves and constantly reflect on our shortcomings. By not shying away from the truth or glossing over mistakes, and by promptly discovering and solving our own problems, we can effectively fight back against the ‘entrapment/hunting’ 围猎 and corruption from all interest groups, power cliques, and privileged classes. This is the secret behind our Party’s ability to maintain its advanced nature and purity and the source of its confidence to carry out self-revolution. To deeply advance the Party’s self-revolution, it is necessary to address the following issues in practice.” 勇于自我革命是我们党最鲜明的品格和最大优势。党的性质宗旨、初心使命决定了我们党始终代表最广大人民根本利益。不谋私利就有了彻底的自我革命精神，就能谋根本、谋大利，就能坚持真理、修正错误，敢于检视自身、常思己过；不讳疾忌医、不文过饰非，及时发现和解决自身存在的问题，就能有力回击一切利益集团、权势团体、特权阶层的“围猎”腐蚀。这是我们党始终保持先进性、纯洁性的奥秘所在，也是我们党能够推进自我革命的底气所在.深入推进党的自我革命，在实践中需要把握好以下问题.

Then Xi highlights the 9 issues that needed to be grasped (九个以) in order to promote self-revolution. These are:

• Taking the upholding the centralised and unified leadership of the CPC Central Committee as the fundamental guarantee

• Taking leading the great social revolution as the fundamental purpose. Under this, he said: Plan the self-revolution of the Party in light of the new requirements of the practice of the great social revolution, use the new achievements of great social revolutionary development to examine the actual effectiveness of the Party’s self-revolution, and strive to achieve: leading the great social revolution through the Party’s self-revolution, and promoting the Party’s self-revolution through the great social revolution. At present, we should plan and promote the self-revolution of the Party closely around the central tasks of the Party, so that the self-revolution of the Party can better serve the central tasks of the Party. 第二，以引领伟大社会革命为根本目的。要针对伟大社会革命实践的新要求来谋划党的自我革命，用伟大社会革命发展的新成果来检验党的自我革命的实际成效，努力实现以党的自我革命引领伟大社会革命、以伟大社会革命促进党的自我革命。当前，就是要紧紧围绕党的中心任务来谋划和推进党的自我革命，使党的自我革命更好服从服务于党的中心任务.

• Taking the Thought on Socialism with Chinese Characteristics for a New Era as the fundamental guideline that must be adhered to

• Taking breaking free from the historical cycle of rise and fall as the strategic goal. Under this, he said: “Advancing the Party’s self-revolution is a magic weapon for breaking free from the historical cycle of dynastic rise and fall. To focus on this strategic goal, we must maintain a high level of political vigilance, promptly eliminate the viruses eroding the Party’s healthy body, and promptly remove various hidden dangers that undermine the Party’s governing foundation, thereby ensuring the Party’s continued health and continuously consolidating its long-term governing position.” 第四，以跳出历史周期率为战略目标。推进党的自我革命是跳出治乱兴衰历史周期率的重要法宝。要聚焦这个战略目标，以高度的政治警醒，及时清除侵蚀党的健康肌体的病毒，及时消除损害党的执政根基的各种隐患，始终保持党的肌体健康，不断巩固党的长期执政地位.

• Taking solving the unique problems of a big Party as the main direction. Under this, Xi tells us that the unique problems of a big Party are encapsulated in the “six how to always 六个如何始终.” Xi had articulated this in the January 2023 CCDI plenary session. Xi says: Solving these difficulties is definitely not the work of a single day or a moment. In advancing the Party’s self-revolution, we must adhere to the problem-oriented approach, maintain strategic determination, treat both the symptoms and root causes, adopt comprehensive measures, coordinate efforts, persist unyieldingly, work persistently and long-term, transform small victories into great victories, and demonstrate the advantages of a big party through continuously resolving its unique challenges. 第五，以解决大党独有难题为主攻方向。我们所说的大党独有难题主要体现为“六个如何始终”，解决这些难题绝非一朝一夕之功。推进党的自我革命必须坚持问题导向，保持战略定力，标本兼治、综合施策、协同发力、锲而不舍、久久为功，积小胜为大胜，在不断解决大党独有难题中彰显大党优势.

• Taking establishing a sound system for comprehensive and strict Party governance as an effective approach to achieve objectives. Under this, Xi writes: “It is necessary to closely follow the general requirements of Party building in the new era, ensuring comprehensive coverage in content, universal coverage of targets, a full chain of responsibilities, and thorough integration of systems. Persist in governing the Party through systems and rules, continuously improve the Party’s self-revolution system and normative framework, and further form a positive cycle of relying on the Party’s own strength to discover problems, correct deviations, drive innovation, and achieve an overall enhancement of governing capabilities.” 第六，以健全全面从严治党体系为有效途径。要紧扣新时代党的建设总要求，坚持内容上全涵盖、对象上全覆盖、责任上全链条、制度上全贯通，坚持制度治党、依规治党，不断完善党的自我革命制度规范体系，进一步形成依靠党的自身力量发现问题、纠正偏差、推动创新、实现执政能力整体性提升的良性循环.

• Taking the forging of a strong organisation and building an excellent team as a key emphasis/focal point. Under this, Xi writes: Deeply implement the Party’s organisational line in the new era, improve the organisational system that is connected from top to bottom and has strong execution, enhance the political and organisational functions of Party organizations, focus on resolving issues such as weakened Party leadership, lack of Party building, and ineffective Party management, and promote comprehensive improvement and comprehensive strengthening of Party organizations at all levels. Adhere to implementing the new era’s standards for good cadres, strictly control the political gate, capability gate, and integrity gate, ensuring that the broad masses of Party members and cadres are loyal, clean and responsible. 第七，以锻造坚强组织、建设过硬队伍为重要着力点。要深入贯彻新时代党的组织路线，完善上下贯通、执行有力的组织体系，增强党组织政治功能和组织功能，着力解决党的领导弱化、党的建设缺失、管党治党不力等问题，推动各级党组织全面进步、全面过硬。坚持落实新时代好干部标准，严把政治关、能力关、廉洁关，使广大党员干部做到忠诚干净担当.

• Taking rectifying discipline, upholding integrity, and combating corruption as an important starting point.

• Taking combining self-supervision with people’s supervision as a powerful driving force. Under this, Xi said: “We must consciously accept supervision by the people, and effectively integrate intra-Party supervision with supervision by state organs, democratic supervision, judicial supervision, mass supervision, and public opinion supervision, so as to achieve a virtuous interaction and mutual gain between self-discipline and external discipline.” 要自觉接受人民监督，切实把党内监督同国家机关监督、民主监督、司法监督、群众监督、舆论监督贯通起来，实现自律和他律良性互动、相得益彰.

The Six How to Always 六个如何始终 are below:

• How to always ensure that we always stay true to our original aspiration and keep the mission firmly in mind?

• How to always unify thoughts, will and actions?

• How to always ensure that we maintain a strong governing ability and leadership level?

• How to always maintain the entrepreneurial spirit?

• How to always identify and solve problems in a timely manner?

• How to always maintain a clean and upright political ecology?

Second, there is a commentary drawing from the conclusions of the CEWC. The article begins by talking about the need to coordinate the five important relationships that were highlighted in the CEWC readout. These are:

• It is necessary to coordinate the relationship between an effective market and a capable government, forming an economic order that is both ‘let loose/engender freedom or autonomy’ (放得活) and ‘regulated/controlled’(管得住).

• It is necessary to coordinate the relationship between total supply and total demand to ensure smooth circulation in the national economy.

• It is necessary to coordinate the relationship between cultivating new drivers of growth and renewing old ones, developing new quality productive forces according to local conditions.

• It is necessary to properly coordinate the relationship between improving incremental additions and revitalising existing stock, and comprehensively enhance resource allocation efficiency.

• It is necessary to properly coordinate the relationship between improving quality and expanding total volume, and consolidate the material foundation of Chinese-style modernisation.”

The commentary then takes the case of the relationship between total supply and total demand to ensure smooth circulation in the national economy. It says:

China has the world’s largest and most comprehensive manufacturing system. Among 500 major industrial products, over 220 rank first globally in production output. This robust supply capability not only supports steady growth in foreign trade, with China’s share of global goods exports ranking first for 15 consecutive years, but also continuously generates effective demand through high-quality supply, providing a constant driving force for economic growth. 我国拥有全球规模最大、门类最齐全的制造业体系，在500种主要工业产品中，有220多种产品产量位居全球第一。强大的供给能力，不仅支撑我国外贸稳步增长，货物出口国际市场份额连续15年保持全球第一，也不断通过高质量供给创造有效需求，为经济增长提供源源不断的动力支撑.

“Supply creates demand. Focusing on improving the quality and efficiency of the supply system can create and stimulate new demand. Taking the NEV industry as an example, it took 6 years from annual production of over 10,000 vehicles to annual production of over 1 million vehicles for the first time. It also took only 6 years for China’s NEV industry to achieve a leap from annual production of 1 million vehicles to 10 million vehicles. Since July, retail sales of new energy passenger vehicles have begun to exceed fuel vehicles. The reason why NEVs have gained market favor and achieved overtaking opportunities by both continuously improving quality through technological innovation and meeting people’s expectations for a high-quality lifestyle.” 供给创造需求。着力提高供给体系质量和效率，就能够创造和引发新需求。以新能源汽车产业为例，从年产过万辆，到年产首次突破百万辆，用了6年。同样只用了6年，我国新能源汽车产业又实现了从年产百万辆到千万辆的跨越。7月份以来，新能源乘用车零售销量开始超过燃油车。新能源汽车之所以能够赢得市场青睐、实现换道超车，一方面在于凭借科技创新不断提升质量，另一方面也在于顺应了人民群众高品质生活的期待.

“The core of deepening supply-side structural reform is to advance industrial innovation with scientific and technological innovation. This Central Economic Work Conference made important arrangements around leading the development of new quality productive forces through scientific and technological innovation, and proposed to carry out large-scale application and demonstration actions of new technologies, new products and new scenarios. Looking to the future, creating new consumer demand through high-quality supply and promoting the upgrading of consumption quality will surely achieve a virtuous cycle and coordinated efforts.” 深化供给侧结构性改革，核心是以科技创新推动产业创新。这次中央经济工作会议围绕以科技创新引领新质生产力发展作出了重要部署，提出开展新技术新产品新场景大规模应用示范行动。面向未来，以高质量供给创造消费新需求、推动消费提质升级，定能实现良性循环、协同发力.

Demand drives supply. In recent years, the Party Central Committee has coordinated the expansion of domestic demand and the deepening of supply-side structural reforms, firmly grasped the strategic basis of expanding domestic demand, and promoted a smoother domestic circulation and more efficient connection between domestic and foreign markets. Especially since this year, the ‘two heavy’ and ‘two new’ policies have continued to exert their strength, continuously releasing consumption potential and driving investment growth. The overall policy of replacing old consumer goods with new ones has driven the sales of related products to exceed 1 trillion yuan. From January to October, national fixed asset investment increased by 3.4% year-on-year. Among this, infrastructure investment increased by 4.3% year-on-year, 0.2 percentage points faster than the previous 9 months; manufacturing investment increased by 9.3%, 0.1 percentage points faster than the previous 9 months. 需求牵引供给。近年来，党中央统筹扩大内需和深化供给侧结构性改革，牢牢把握扩大内需这一战略基点，促进国内大循环更为顺畅、内外市场联通更加高效。特别是今年以来，“两重”“两新”政策持续发力，不断释放消费潜力、拉动投资增长。消费品以旧换新政策整体带动相关产品销售额超1万亿元。1至10月全国固定资产投资同比增长3.4%。其中，基础设施投资同比增长4.3%，比前9个月加快0.2个百分点；制造业投资增长9.3%，比前9个月加快0.1个百分点.

“The Central Economic Work Conference has deployed the key tasks for next year, with ‘vigorously boosting consumption, improving investment efficiency, and expanding domestic demand in all directions’ as the top priority. This reflects an efficient coordination of total supply and demand and a deep understanding of economic laws. Implementing special action to boost consumption, expand and strengthen the implementation of ‘two new’ policies, provide greater support for ‘two heavy’ projects, these policy measures, both grounded in the present and looking toward the long-term, will inevitably effectively stimulate domestic demand potential, consolidate and expand domestic circulation, and better drive the domestic and international dual circulation.” 这次中央经济工作会议部署明年工作重点任务，排在第一位的就是“大力提振消费、提高投资效益，全方位扩大国内需求”，体现的正是对总供给和总需求的高效统筹，是对经济规律的深刻运用。实施提振消费专项行动，加力扩围实施“两新”政策，更大力度支持“两重”项目，这些政策举措既立足当下、又着眼长远，必将有效激发内需潜能，夯实做大国内大循环，更好地带动国内国际双循环.

“Currently, China’s economic operation faces numerous difficulties and challenges, including insufficient domestic demand and the adverse impact of an unstable and uncertain international environment on external demand. It is essential to recognise that expanding domestic demand is not only crucial for economic stability but also for economic security; it is a strategic move, not temporary expediency. In this context, it is particularly urgent and important to coordinate the relationship between total supply and total demand.” 当前我国经济运行面临不少困难和挑战，国内需求不足，外部需求面临国际形势不稳定不确定因素增多的不利影响。必须深刻认识到，扩大内需既关系经济稳定，也关系经济安全，不是权宜之计，而是战略之举。在这样的背景下统筹好总供给和总需求的关系，显得尤为紧迫而重要.

“Practice has shown that achieving a virtuous cycle of the national economy requires coordinated efforts and dynamic balance between supply and demand. On one hand, it is necessary to focus on the supply side, continuously deepen supply-side structural reform, making advancements and retreats, providing support and applying pressure to enhance the alignment and balance between supply and demand. On the other hand, attention must be directed toward the demand side, accelerating efforts to address shortcomings in domestic demand, particularly in consumption, so that domestic demand becomes the primary driver and stabilising anchor of economic growth. Only by acting in accordance with economic laws can better outcomes and results be achieved. The ‘five must-coordinate’ principles are an important understanding of economic work laws that must be firmly grasped. By studying, understanding, and applying Xi Jinping Economic Thought and using scientific methods to plan and promote economic work, we can surely take the initiative in development and achieve steady and long-lasting progress.” 实践告诉我们，实现国民经济良性循环，必须坚持供需两侧协同发力、动态平衡。一方面要抓住供给侧，持续深化供给侧结构性改革，有进有退、有保有压，增强供给与需求的适配性、平衡性。另一方面要聚焦需求侧，加快补上内需特别是消费短板，使内需成为拉动经济增长的主动力和稳定锚。只有按照规律行事，才能取得更好的工作实效和成绩。五个“必须统筹”是做好经济工作的重要规律性认识，要牢牢把握。学习好、领会好、运用好习近平经济思想，坚持用科学方法谋划和推进经济工作，我们定能掌握发展主动、做到行稳致远.