Supply-side Structural Reform
General Secretary Xi Jinping emphasized the importance of “supply-side reform” at the 11th meeting of the CPC Central Leading Group for Financial and Economic Affairs on November 10, 2015. At present and for the foreseeable future, China will face a number of issues in its economic development in both supply and demand, but mostly on the supply side.
The ultimate goal of supply-side reform is to meet demand by improving quality through further reform. In order to meet demand, we must have a clear sense of market changes and understand the present and potential demand so that products can be made available through unleashed and increased productivity to meet the growing material and cultural needs of the population. In order to improve the quality of supply, we need to increase effective supply through a systemic improvement on the supply side so that ineffective supply is weeded out and supply is structured in a way that can effectively meet demand.
The fundamental approach to achieving this goal is deeper reform. Institutions must be put in place to allow the market to play a decisive role in the allocation of resources. Further reform is also needed with the administrative management system in order to break up monopoly and maintain a healthy factor market so that the price mechanism can truly serve as a guide for resource allocation. Structural reform on the supply side is designed to address overcapacity, reduce inventory, deleverage, lower costs, and tackle areas of weaknesses.
In order to resolve supply side problems and generate constant driving forces for sustained and healthy economic growth, a number of policy measures are needed, especially those that aim to encourage innovation, growth in the real economy, and improved living standards.
供给侧结构性改革
2015年11月10日，在中央财经领导小组第十一次会议上，习近平提出推进“供给侧改革”这一重要战略决策。当前和今后一个时期，中国经济发展面临的问题，供给和需求两侧都有，但矛盾的主要方面在供给侧。供给侧结构性改革，最终目的是满足需求，主攻方向是提高供给质量，根本途径是深化改革。最终目的是满足需求，就是要深入研究市场变化，理解现实需求和潜在需求，在解放和发展社会生产力中更好满足人民日益增长的物质文化需要。主攻方向是提高供给质量，就是要减少无效供给、扩大有效供给，着力提升整个供给体系质量，提高供给结构对需求结构的适应性。根本途径是深化改革，要完善市场在资源配置中起决定性作用的体制机制，深化行政管理体制改革，打破垄断，健全要素市场，使价格机制真正引导资源配置。当前供给侧结构性改革的主要任务是去产能、去库存、去杠杆、降成本、补短板。要通过一系列政策举措，特别是推动科技创新、发展实体经济、保障和改善人民生活的政策措施，来解决中国经济供给侧存在的问题，为经济持续健康发展提供源源不断的内生动力。