Regarding The Deepening Of Factor Marketization Reform, The National Standing Committee Has Made New Arrangements

As an important part of promoting the construction of a unified national market, deepening the market-oriented reform of factors has ushered in new deployments.

The National Standing Committee pointed out that deepening the market-oriented reform of factors is an important measure to build a high-level socialist market economy system. We must continue to vigorously promote reforms, give full play to the decisive role of the market in resource allocation, promote the determination of factor prices in the market, promote independent and orderly flow, and ensure efficient and fair allocation.
Zhang Xiaolan, a researcher at the Economic Forecasting Department of the National Information Center, stated that market allocation of resources is the most efficient form. The current deepening of factor marketization reform will help to solve the problem of "internal competition", create a more fair market competition environment, and stimulate the endogenous driving force of economic development.
Exploring differentiated reforms
This year's government work report proposes to deepen the construction of a unified national market. Accelerate the establishment and improvement of basic institutional rules, eliminate local protectionism and market segmentation, break through the bottlenecks that restrict economic circulation in terms of market access and exit, factor allocation, etc., and comprehensively rectify "internal competition".
After more than 40 years of reform and opening up, 97.5% of the prices of goods and services in China have been formed by the market. However, compared with the commodity and service markets, the development of factor markets such as land, labor, capital, technology, and data is relatively lagging behind, becoming a prominent shortcoming in the construction of a high standard market system.

The "Opinions of the Central Committee of the Communist Party of China and the State Council on Building a More Comprehensive System and Mechanism for Market oriented Allocation of Factors" released in 2020 clearly pointed out the need to promote market-oriented allocation of factors such as land, labor, capital, technology, and data, improve the efficiency of factor allocation, and further stimulate the creativity and market vitality of the whole society.
The overall plan for the comprehensive reform pilot of market-oriented allocation of factors, released at the end of 2021, laid out the layout of the reform pilot work, clarified the specific goals of the pilot, and proposed that by 2025, the pilot tasks should be basically completed, and the market-oriented allocation of factors reform should achieve landmark results, making an important demonstration for improving the national factor market system.
Sun Changxue, a researcher at the China Institute of Macroeconomics, stated that the reform of market-oriented allocation of factors is a key reform task with a guiding role. The comprehensive reform pilot is the correct method and strategy adopted to promote reform in the new era. It is a major measure to adhere to the principle of pilot first and comprehensive promotion, and to enhance the systematic, holistic, and coordinated nature of the reform.
The National Standing Committee has made new arrangements for the pilot work this time. The National Standing Committee requires that we focus on key areas and key links to promote reform pilot projects, guide pilot areas to innovate boldly according to local conditions, explore differentiated reforms, and accelerate the elimination of institutional barriers. We should do a good job in overall coordination and guidance services for pilot work, timely summarize and evaluate, and form replicable and promotable experience and practices.
Zhang Xiaolan stated that implementing the conference deployment and carrying out the pilot work of comprehensive reform of market-oriented allocation of factors will enable various advanced and high-quality production factors to flow smoothly towards the development of new quality productive forces, which will better stimulate market vitality and open up new development space.
Continuously pushing forward reforms with great effort

In recent years, China's land supply methods have become more diverse, the construction of the technology factor market has been vigorously promoted, positive progress has been made in the legislation and standard setting of data factor policies, the reform of the capital market registration system has been orderly promoted, the resource and environmental market system is gradually improving, and the market-oriented reform of factors is continuously advancing. The market-oriented allocation reform of factors in China has achieved significant results, but still faces many challenges.
Professor Yang Xiangyang from the School of International Economics and Business at Nanjing University of Finance and Economics pointed out in an article that the current price formation mechanism is mainly reflected in the land, technology, and data factor markets. The underlying reason is that the institutional barriers to market-oriented factor allocation reform still need to be eliminated, especially the blurred boundary between administrative intervention and market mechanisms, the incomplete evaluation standard system, and the lagging transaction infrastructure, which have led to significant obstacles in realizing factor value.
He gave an example that in the technology factor market, due to the lack of a scientifically unified evaluation system, a large number of innovative achievements are difficult to realize market value, leading to a tendency in the patent trading market to prioritize quantity over quality. This not only causes low value patents to flood the market, but also severely underestimates the value of breakthrough technology innovations, thereby limiting the flow of innovative technology factors and potential conversion efficiency.
The National Standing Committee has made it clear that we need to stimulate the innovation vitality of technological factors, promote the intensive and efficient allocation of land factors, guide the rational flow of human resources, accelerate the cultivation and improvement of data factor markets, enhance the ability of capital factors to serve the real economy, and improve the construction of resource and environmental market systems.
Yang Xiangyang stated that the current market-oriented allocation reform of factors has entered a critical stage. Faced with the urgent needs of restructuring the global value chain, reshaping the international competitive landscape, and upgrading the domestic economy, we must pay more attention to improving market operation efficiency, creating a fair and orderly competitive environment, and continuously expanding market openness. While breaking administrative divisions through institutional innovation such as improving factor trading platforms, we should also use technologies such as big data and blockchain to enhance factor allocation efficiency, providing solid guarantees for the deepening of the construction of a unified national market.
As a new type of production factor, data has attracted much attention in its market-oriented reform process. The previously issued "Key Points for the Development of Digital Economy in 2025" proposed to take the market-oriented allocation reform of data elements as the main line, accelerate the improvement of data property rights, national integrated data market and other data basic systems, and promote the integration and sharing of data resources.

In recent years, the National Data Administration has systematically promoted the market-oriented allocation reform of data elements, and has launched a set of policy "combination punches" to continuously transform the advantage of massive data into a new competitive advantage for the country. Last year, 21 policies were introduced for the development and utilization of public data resources, and this year, more than 10 systems such as data property rights will be introduced. A group of data enterprises focusing on data aggregation, sharing, development and utilization are emerging, standards and norms are constantly being introduced, data transactions are becoming increasingly active, and the construction of a national integrated data market is accelerating.
Liu Liehong, Director of the National Data Administration, recently stated that we will make every effort to promote the market-oriented allocation reform of data elements, establish and improve the data infrastructure system, and create a favorable policy environment. Strengthen the construction of data infrastructure such as trustworthy data space, and ensure the reliable and efficient circulation of data. Promote the implementation of scenario applications and better leverage the leading and exemplary role of "data elements x" and public data "running". Give full play to the role of market mechanisms, coordinate and make good use of on exchange and off exchange transactions, and build a national integrated data market.