Economic theory innovation and China's development practice

Purpose The purpose of this paper is to promote the theoretical innovation of socialist economics with Chinese characteristics in these areas. Design/methodology/approach We must "excavate new materials, discover new problems, propose new ideas, and construct new theories from the practice of China's reform and development." Findings Giving full play to the government’s role in realizing optimal allocation of resources required for the public economy to better exert its control, influence and guidance, and at least assume the following three responsibilities. The first is to iron out the economic cycle. The second is to lead the industry to upgrade. The third is to ensure national economic security. Originality/value Some deep-rooted issues still need to be further studied in order to establish the scientific and practical nature of the socialist economics with Chinese characteristics. For instance, why is the theory of a socialist economy with Chinese characteristics summarized from the development practice in China a scientific theory?