Two-Way Supply And Demand To Achieve Rebalancing China's Economy

The focus of the central economic work conference will be held this month. Since 2016 is the year when China's "13th Five-Year" plan was opened, it is also the key year for China's economy to enter a period of deep adjustment and pformation.

How the central economic work conference set the tone for next year's work has attracted wide attention.

Over the past month, senior executives have frequently voicing their economic problems.

From the central deep reform group and the financial and economic leadership group meeting to the executive session of the State Council, from Xi Jinping's speech and Premier Li Keqiang's foreign media published articles, including the supply side reform, consumption upgrading and "Internet +" and international production capacity cooperation, several key words are relatively high frequency, which may also reflect the key direction of next year's economic work.

Next year, the idea of economic work has become clearer and clearer. That is, we should continue to deepen reform, and make two-way efforts from the supply side to the demand side, so as to achieve the rebalance between demand and supply through international capacity cooperation and "Internet +" means, so that the Chinese economy can truly rely on domestic demand driven, innovation driven sustainable and healthy development, and ultimately achieve structural adjustment and shift upgrading.

At the Symposium on economic work held yesterday, Premier Li Keqiang once again mentioned the supply and demand problems. He said he needed to make efforts at both ends of supply and demand to promote structural reform and promote healthy and stable development of the economy.

Supply for the global market is weak because of the weakness of the international market, and the result is obvious: supply exceeds demand.

According to the IMF, the capacity utilization rate of all industries in China is not more than 65%.

There is a serious surplus of capacity.

Background.

In the past month, the central government has repeatedly mentioned the issue of supply side reform.

In essence, the supply side reform touches on the deep structural problems of China's economy.

For example, iron and steel, China's iron and steel production capacity seriously oversupply, not only cause waste of resources, but also pollute the environment.

For example, the real estate market, the task of going to inventory is very heavy.

Especially for the two or three line cities, according to the statistics of the National Bureau of statistics, the accumulated commercial housing area is calculated by 100 million square meters.

It is worth mentioning that in the reform of state-owned enterprises, the high level has repeatedly referred to the problem of "zombie enterprises" withdrawing from the market. The zombie enterprises themselves provide either invalid supply or unable to provide supply.

Let the "zombie enterprise" withdraw from the market is also to eliminate invalid supply.

There are many problems on the supply side. It will be a big thing to figure out what to do and what to do.

There is excess capacity on the side of the supply side, but the demand side has great potential to tap.

Consumption has accounted for half of China's economic growth.

But compared with the contribution rate of consumption in developed countries to economic growth as high as 70%, China still has great room for development.

Moreover, with the improvement of living standards, new consumption areas will continue to emerge.

The potential of quality consumption, green consumption and individual consumption is huge.

In November 19th and 23rd, the State Council continuously issued guidance to promote consumption, especially in terms of quality consumption.

It is undeniable that

Although large, there are many reasons why domestic demand can not be satisfied because of various reasons, that is, it can not be supplied through domestic supply.

During holidays and holidays, when people travel overseas, the phenomenon of buying bags and shopping bags is vividly remembered.

For example, the steel production capacity mentioned above is serious surplus, but some high-end steel products still need to import.

Even once, the Chinese once bought the toilet lid of Japan, which caused many discussions.

How to effectively play the role of consumption in stimulating domestic economic growth and match demand and supply at home? This is also a key point in next year's economic work.

Where is the way to solve the problem of supply and demand mismatch? Premier Li Keqiang at yesterday's symposium has made it clear that it is necessary to make efforts at both ends of supply and demand.

Combing Prime Minister Li Keqiang's many speeches in the past, we will find two ways.

First, the effective matching of supply and demand through "Internet +" is actually the inherent demand of prime minister's quality consumption and personalized consumption.

From the ideal concept, it is the most resource saving for every product to make private ordering and on-demand production to avoid intermediate links, which can also achieve seamless supply and demand.

In addition, with the development of the Internet, this is also gradually moving towards reality.

Some APP and e-commerce applications can completely make demand "necessary" and establish direct connection between consumers and businesses.

In this way, consumers purchase such websites are not simply ordering goods, but ordering them.

Moreover, the "necessary" C2M (user direct manufacturer) mode can also reduce the inventory cost and logistics cost of merchants, and ultimately reduce the price of goods, so that consumers can benefit from it.

At yesterday's Expert Symposium, Li Keqiang also made a clear decision to pass.

"Action plan", at the same time to achieve supply and consumption upgrading, so that the two match more and release economic growth momentum.

The second is to pfer excess capacity through international capacity cooperation.

If "Internet +" is the ideal way to connect "necessary demand" and "effective supply", pferring surplus capacity is the realistic way to solve the current problem.

Every visit to the prime minister will talk about capacity cooperation. Taking the strategy of "one belt and one road" and "China made 2025" as the starting point, expanding opening up and expanding foreign economic cooperation is the key to solve the contradiction between excess capacity and insufficient competitiveness of China's old kinetic energy.

In fact, opening wider to the outside world and expanding foreign economic cooperation will not only help solve the problem of overcapacity in China, but also play an important supporting role in enhancing the space and international competitiveness of China's manufacturing market.

In the past year, China's cooperation with Kazakhstan and many "one belt and one country" has achieved good results. It is expected that in 2016, productivity cooperation will be vigorously promoted, the surplus domestic capacity will be reduced to foreign countries, and docking with foreign demand to achieve supply and demand matching.