The following is a summary of Wu Xiaoqiu's keynote address and roundtable discussion at the Seventh Annual Conference of Government and Economics held at Tsinghua University, Beijing, on June 7, 2025. Dr. Wu is Director of the National Institute of Financial Studies at Renmin University of China and Director of the China Capital Market Research Institute.

On June 10, 2025, the Seventh Annual Conference of Government and Economics, co-hosted by the Society for the Analysis of Government and Economics (SAGE) along with Tsinghua University's School of Social Sciences and the Academic Center for Chinese Economic Practice and Thinking (ACCEPT), was broadcasted online. Apart from participating in a lively roundtable discussion, the Director of the National Institute of Financial Studies at Renmin University of China and Director of the China Capital Market Research Institute, Wu Xiaoqiu, delivered a keynote address to attendees at the conference that underscored the importance of closely examining the relationship between government and the market.

Wu observed that properly handling the relationship between government and the market represents the core issue facing China's economy. He alluded to the fact that the market should be regarded as the decisive force for guiding the allocation of resources, with China's economic success having hinged on its adherence to this principle. As coined by the concept of an "enabling government," the meaning behind "enablement" can be reflected in the establishment of a favorable business environment, including by making improvements to the legal system, establishing fault-tolerant mechanisms and ensuring the continuity of government policy, in this way enhancing the security and confidence of market participants without directly steering the economy or the distribution of economic resources. As for an "efficient market," Wu acknowledged that the current situation is characterized by short-term volatility and inefficiencies, but suggested that these factors nevertheless do not negate the decisive role played by the market. The efficiency of the market is achieved by way of a dynamic process of readjustment, with its internal logic ultimately proving superior to that of governmental decision-making. He therefore insisted that the policy-making process ought to abide by the principles of an "enabling government" and an "efficient market," which includes carrying out institutional changes as necessary in order to further stimulate the overall vitality of the economy.