The market-oriented factor reform during the 15th Five Year Plan period is a profound transformation that reshapes the underlying logic of the Chinese economy. By breaking down institutional barriers and activating the potential of factors, strong momentum will be injected into improving the factor productivity, promoting the development of new quality productivity, and entering the track of high-quality development. This is not only an active choice to cope with the profound changes unseen in a century, but also a necessary path to achieve the goal of building a socialist modernized strong country.
Currently, the Chinese economy is at a critical juncture of transitioning to new from old economic engines, and market-oriented factor reform is a strategic choice to solve the development dilemma. The key and difficult points to be overcome in the market-oriented factor reform focus on five core areas, which are data factor market reform, land factor market reform, labor factor market reform, technology factor market reform, and green factor market reform. The core of market-oriented factor reform is to comprehensively promote the market-oriented factor flow according to a broad price mechanism, mobilize the vitality and creativity of existing factors, and enable incremental factors to flow into the areas with the highest social marginal benefits.
