Supply-side structural reform

General Secretary Xi Jinping emphasized the importance of “supply-side reform” at the 11th meeting of the 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.

供給側結構性改革

2015年11月10日，在中央財經領導小組第十一次會議上，習近平提出推進“供給側改革”這一重要戰略決策。當前和今后一個時期，中國經濟發展面臨的問題，供給和需求兩側都有，但矛盾的主要方面在供給側。供給側結構性改革，最終目的是滿足需求，主攻方向是提高供給質量，根本途徑是深化改革。最終目的是滿足需求，就是要深入研究市場變化，理解現實需求和潛在需求，在解放和發展社會生產力中更好滿足人民日益增長的物質文化需要。主攻方向是提高供給質量，就是要減少無效供給、擴大有效供給，著力提升整個供給體系質量，提高供給結構對需求結構的適應性。根本途徑是深化改革，要完善市場在資源配置中起決定性作用的體制機制，深化行政管理體制改革，打破壟斷，健全要素市場，使價格機制真正引導資源配置。當前供給側結構性改革的主要任務是去產能、去庫存、去杠桿、降成本、補短板。要通過一系列政策舉措，特別是推動科技創新、發展實體經濟、保障和改善人民生活的政策措施，提高供給體系質量，為經濟持續健康發展提供源源不斷的內生動力。