A People's Daily (February 8) editorial/commentary said 'the socialist market economy is essentially a lawbased economy, and must be based on the protection of property rights, the maintenance of contracts, a
unified market, equal exchange, fair competition, and effective supervision. Capital activities must be carried
out in accordance with the law. It should be seen that to prevent the disorderly expansion of capital, it is not
the absence of capital, but the orderly development of capital.' It pointed out that the Central Economic Work
Conference 'clearly put forward five major theoretical and practical issues that need to be correctly
understood and grasped. They are issues related to the overall, strategic and forward-looking development of the Party and the country'. Mentioning that "Capital is profit-seeking" the editorial stated that 'the socialist
market economy is essentially an economy under the rule of law, and it must be based on the protection of
property rights, the maintenance of contracts, a unified market, equal exchanges, fair competition, and
effective supervision'. It explained that to support and guide the healthy development of capital, 'it is
necessary to set both "red lights" and "green lights".' The "red lights" are to demarcate boundaries and
strengthen norms, and the "green lights" are to give full play to the positive role of capital as a factor of
production. Endorsing Beijing’s latest slogan of regulating capital expansion with “traffic lights,” saying the
approach sets rules and a bottom line aimed at ensuring that businesses “obey the leadership of the party", it
said the country should improve management of market access, strengthen market source control and
industry supervision, enhance anti-monopoly and anti-unfair competition regulations, and prevent capital
from growing wild.
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