At the Central Economic Work Conference held at the end of last year, General Secretary Xi Jinping summarized and refined our Party's regular understanding of economic, put forward five "must coordinate", and further enriched and developed Xi Jinping's economic thought. The first one is "we must coordinate the relationship between an effective and a capable government, and form an economic order that is both 'free' and 'controllable'. This is an inevitable requirement for adhering to and improving the market economic system, developing the socialist market economy, and promoting high-quality development. We should deeply study and understand the standpoint, viewpoint, and method that run through Xi's economic thought, deepen our understanding of the laws of economic development and truly follow them, deepen the reform of the economic system, form an economic order that is bothfree" and "controllable", and promote high-quality development with a steady and rapid pace.

To form an economic order that is both "dynamic" and "well-regulated", we need to build on the historical consciousness of the socialist market economy to coordinate the relationship between an effective market and a capable government.
The relationship between the government and the market is a decisive factor for economic development After the founding of New China, our Party led the people to explore and practice on the basis of starting from China's reality and following the laws of economic development to the correct path of developing the socialist market economy. It can be said that the exploration, formation, and expansion of this path have always been centered on the core issue how to correctly understand and handle the relationship between the government and the market. This is a historical process of continuously recognizing objective laws based on practice, adhering to truth and correcting mistakes. It is a historical process that has no best, only better. From the planned economy to "planned economy as the main, market regulation as supplement", "planned commodity economy based on public ownership", "combination of planned economy and market regulation", and then to the socialist market economy, it is step by. It is a great feat in the history of world economy to develop the socialist market economy, because before this, people generally believed that the market economy was a unique of capitalism and the planned economy was the basic feature of socialist economy.

In the process of developing the socialist market economy, we have never ceased our practical exploration and theoretical understanding the socialist market economy, and we have not stopped at "letting the market play a fundamental role in the allocation of resources under the macro-control of the state". is a firm adherence to historical materialism and a historical consciousness of the pursuit of truth by the Chinese Communists. Since the 18th National Congress of the Party of China, General Secretary Xi Jinping has put forward a series of new ideas, new viewpoints, and new assertions around the relationship between government and the market, the socialist market economy to break through the waves and move forward. The Third Plenary Session of the 18th Central Committee proposed that economic system reform is the of deepening reform in an all-round way, and the core issue is to deal with the relationship between government and the market, to let the market play a decisive in the allocation of resources and to better play the role of government; the Fifth Plenary Session of the 19th Central Committee proposed to adhere to and improve basic economic system of socialism, to give full play to the decisive role of the market in the allocation of resources, to better play the role of government, and to the better combination of effective market and capable government; the Third Plenary Session of the 20th Central Committee proposed that we must better play the role of market, create a fairer and more dynamic market environment, achieve the optimization of resource allocation efficiency and the maximization of benefits, and be both "letting go" "managing well", better maintain market order, make up for market failure, and smooth the national economic cycle. Stimulate the endogenous power and innovation vitality of whole society.
Ideas lead practice, and the road determines destiny. General Secretary Xi Jinping pointed out: "A key factor for the great success of China's economic is that we have not only played the advantages of the market economy but also the superiority of the socialist system." It is under the guidance of the Party's innovative theory we have been striving along the correct path of developing the socialist market economy and making continuous progress in the construction of an effective market and a capable government, which has created miracle of rapid economic development. From 1979 to 2023, China's economy grew at an average annual rate of 8.9 far higher than the average growth rate of the world economy of 3.0% during the same period, and its average annual contribution to world economic growth was 4.8%, ranking first in the world. Since the 18th National Congress of the Communist Party of China, China's economic aggregate has continuously reached new, and it is expected to exceed 130 trillion yuan in 2024. At the same time, we should see that in the long river history, the socialist market economy is still a new thing, and the socialist market economic system is still a new system. Whether it is in giving full play to the role of the market in the allocation of resources or in better playing the role of government, we need to explore in practice and do better in constantly summarizing and applying. We should deeply understand the relationship between effective market and capable government from the magnificent historical process of the Party leading the people to develop the socialist market economy, deepen economic reform, and promote high-quality development, and constantly enhance the historical consciousness of coordinating the relationship between effective market and capable government, and open up a new historical realm with consciousness.