Supply-Side Structural Reform

Xi Jinping emphasized the importance of “supply-side reform” at the 11th meeting of the Leading Group for Financial and Economic Affairs under the CPC Central Committee on November 10, 2015.

The report to the 19th CPC National Congress stressed that in developing a modernized economy, China must focus on the real economy, give priority to improving the quality of the supply system, and enhance the quality of the economy.

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 in-depth 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。中共十九大報告進一步強調，建設現代化經濟體系，必須把發展經濟的著力點放在實體經濟上，把提高供給體系質量作為主攻方向，顯著增強我國經濟質量優勢。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。滿足需求，就是深入研究市場變化，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。提高供給質量，就是減少無效供給、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。深化改革，就是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。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。