China’s reform enthusiasm index rises for “second consecutive year”

On October 25th, the China Economic System Reform Research Association released its “Third-Party Assessment Report on Reform Enthusiasm for the Third Quarter of 2024” in Beijing. According to the report, the Reform Enthusiasm Index in China has shown a steady increase for two consecutive quarters since the second quarter of this year.

The report indicates that the Reform Enthusiasm Index for the third quarter of 2024 stands at 70.62, reflecting a slight rise of 0.17 from the previous quarter, which is a growth of 0.25%. Year-over-year, this represents an increase of 2.81%.

When broken down by sector, both the economy and party-building sectors witnessed an upward trend in reform enthusiasm, both compared to the previous quarter and year-on-year.

Regionally, the third-quarter reform enthusiasm indices for the East, Central, Northeast, and West areas of China were recorded at 70.33, 71.26, 69.82, and 70.59, respectively. Compared to the previous quarter, the Central, Northeast, and Western regions saw improvements in their indices; year-over-year, all four regions exhibited an upward trend, with the Northeast experiencing the most significant growth.

Looking at the 31 provinces and districts, Shaanxi, Tianjin, Chongqing, Shanghai, and Fujian led in reform enthusiasm for the third quarter. Notably, Shaanxi has reclaimed the top spot among provinces and municipalities since the third quarter of 2022.

In terms of provincial capitals, Shenyang, Wuhan, Guiyang, Xining, and Xi’an had the highest reform enthusiasm indices this quarter. For the first time since the index was launched in the third quarter of 2018, Wuhan ranked second among provincial capitals. Additionally, Shenyang, Guiyang, Hefei, and Jinan have remained in the top ten for two consecutive quarters.

The research team behind the Reform Enthusiasm Index at the China Economic System Reform Research Association emphasized that in the face of a more complex external environment and the emergence of new challenges within the current economic landscape, the sustained and stable increase in the Reform Enthusiasm Index over the past two quarters suggests that advancing a new phase of modernization in the Chinese context will still rely heavily on reform. The implementation of existing policies and the introduction of a package of new policies will provide strong momentum and institutional support for advancing China’s unique modernization pathway.