The generative logic and value implications of Xi Jinping’s "Theory of the Two Hands": An analysis of Xi Jinping’s key exposition on the relationship between government and market

The generation of Xi Jinping’s "Theory of the Two Hands" is logically inevitable. This theory embodies the theoretical continuity and advancement of Marxist classicists and their successors' understanding of the relationship among planning, market, and fundamental social systems. It represents a historical necessity that builds on the Chinese Communist Party’s experience in advancing China’s economic reform, as well as an urgent practical need to refine the socialist market economy in the new era. Xi Jinping’s "Theory of the Two Hands" addresses three dimensions—content and essence of the issue, delineation of roles and functions, and methods and objectives of resolution—thus exploring the government-market relationship across six distinct layers. This approach scientifically answers questions concerning the nature of the problem, the roles and functions involved, the methods of handling it, and the goals it seeks to achieve. Not only does it expand new horizons in contemporary Marxist political economy, but it also deepens the understanding of the laws underlying socialist construction with Chinese characteristics, advancing the socialist market economy of China to a new stage of high-quality development.