The Improvement Of The Supply Side Structure Is Imminent As A New Growth Power.

A prominent feature of China's economic development in the new normal is that we need to rely on structural optimization as a new driving force for growth and push our economy towards a higher quality, more efficient, more equitable and more sustainable development.

Under the constraints of new resources endowment, we should innovate, coordinate, green, open and share the new development concept to guide the successful pformation of the economic development mode.

Major considerations for structural reform.

Throughout the process of economic development since the founding of new China, especially since the reform and opening up, great achievements have been made in China's development. We can draw a clear conclusion that economic structural adjustment and optimization is the natural direction and inevitable outcome of the pition from planned economy to socialist market economy, which greatly optimizes the allocation of productive resources and promotes the improvement of productivity.

Market economy requires market players to make their own judgement based on information and decide whether to make or buy or sell what they produce and how to produce it. Therefore, the economic structure based on planned economy will need to adjust voluntarily or passively.

It can be said that a major achievement in the process of reform and opening up in the past 40 years is socialism.

The initial establishment and continuous improvement are in fact the continuous optimization and continuous adjustment of the economic structure.

Today, as the second largest economy in the world, China has begun to play a huge role in leading the global economic development.

But development is endless, reform is endless, and the optimization of economic structure is endless.

At present, the prominent contradictions and problems faced by China's economic operation, though cyclical and aggregate, are the major structural imbalances, which lead to a poor economic cycle. We must try to find ways to achieve a new dynamic equilibrium between supply and demand from the structural reform of the supply side.

For example, although the capacity of our supply system is very strong, most of them can only meet the demand of low, low quality and low price. With the expansion of the middle-income group in China, the supply system fails to follow up in time. The result is overcapacity on the one hand, and on the other hand, it can not meet the needs of consumers.

For example, China, the United States and Germany, as the top three countries in world trade, are quite different in terms of export structure.

Statistics show that in 2015, the main export commodities of the United States ranked the top three in terms of mechanical and electrical products, pport equipment and chemical products, accounting for 53.4% of exports, accounting for only about 3% of labor intensive products such as textiles and raw materials, furniture and toys.

Take Germany as an example, in 2015, the export of mechanical and electrical products, pport equipment and chemical products in Germany accounted for 62.7% of the three categories, and the labour intensive products such as textiles, raw materials, furniture and toys accounted for only about 4.3%.

China, in 2015, exported furniture, toys, textiles and raw materials to the United States.

The proportion of labor-intensive products such as umbrellas and umbrellas reached 24.7%, and the labor-intensive products exported to Germany amounted to 23.7%.

Although China's import and export scale has been ranked first in the world's largest trade in goods, it still has a large gap compared with other trading powers in terms of export commodity structure, quality, efficiency, core technology, energy consumption and energy consumption, and the development of service trade.

With the deepening of the reform, the resource endowment of China's economic development is gradually adjusting. The bottleneck of natural resources and the rising labor cost have become an insurmountable obstacle to the old economic growth mode. At the same time, it has become a pushing force for the new economic development mode (including new system and new mechanism, new energy and new power, etc.).

This year is the deepening year of supply side structural reform. Promoting the structural reform of supply side is an inevitable choice for China's economic development to enter the new normal. It is a strategic thinking that China's macroeconomic management must establish under the new normal economic development.

Improving the supply side structure as the main direction of production, starting from the end of production, improving the quality and efficiency of the supply system, expanding the effective and high-end supply, and enhancing the adaptability of the supply side structure to the demand change have become the consensus of the decision-making level and the industrial community.

This is going to be a long way to go.

To deepen the structural reform of supply side, we must draw on historical experience.

One important experience is to make the market play a decisive role in the allocation of resources and better play the role of the government.

The history of reform and opening up fully proves that when this experience is adhered to, economic development will be smooth; when the decisive role of the market in the allocation of resources will be weakened, the role of the government in economic development will be distorted, and economic development will suffer setbacks.

Making the market play a decisive role in the allocation of resources and playing a better role in the government should become a major principle to push forward the structural reform of supply side.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.