China'S Economy Is More Prominent Than Reality.

Sponsored by the State Council Development Research Center and hosted by the China Development Research Foundation, the 2017 annual meeting of China Development Forum was held at Diaoyutai State Guest House, Beijing.

At the meeting, the "supply side structural reform" became an important topic of discussion.

The participants expressed the view that the current Chinese economy is more prominent than the real economy. It should focus on innovating institutional supply, implementing innovation driven, expanding effective demand, and preventing potential risks.

More market-oriented and legalized means should be adopted to push forward the structural reform of supply side by means of reform. We must grasp the opportunities brought by the new round of industrial revolution and digital economy, vigorously promote scientific and technological innovation and institutional innovation, and reshape the driving force of economic development.

He Lifeng, director of the national development and Reform Commission, said that China's economic development now faces three major structural imbalances: first, the structural imbalance between the supply and demand of the real economy, while the capacity of the supply system is very strong, but most of them can only meet the demand of low, low quality and low price, which is difficult to meet the increasing multi-level, high-quality and diversified consumption demand of the public.

The two is the imbalance between finance and real economy. There is a phenomenon that capital is not real and virtual. A lot of funds are self circulating in the financial system, which not only increases the risk of the financial system, but also further aggravates the financing difficulties of the real economy.

The three is the imbalance between real estate and real economy. There is a large influx of funds into the real estate market, which once led the rise of housing prices in the first tier cities and hot second tier cities, and further pushed up the cost of real economic development.

He Lifeng said that in order to resolve the above three imbalances, we must aim at the main contradiction, find out the way to structural optimization, and work hard on the supply side. We must persist in the coordination of all sides, enhance the resultant force, persist in the goal leading, maintain the fixed force, and push forward the structural reform of the supply side to advance our goal.

In order to implement the central decision-making and deployment, we will focus on five aspects this year: first, we should focus on innovating system supply and optimizing factor allocation.

We should speed up the reform of important fields and key links of state owned enterprises, finance, taxation, finance, investment and financing, price, social security and so on. We should strengthen the construction of property rights protection system, eliminate concentrated invisible barriers, better stimulate the vitality of non-public sectors of the economy, deepen the reform of factor market, play the decisive role of price mechanism in factor allocation, guide the free flow of elements, and promote the concentration of factors to more productive industries and enterprises, increase labor productivity, increase total factor productivity and raise the potential growth rate of the economy.

Two, we should focus on the implementation of innovation drive and revitalize the real economy.

Seize the nose of the zombie enterprise and make full use of market and legal means to resolve excess capacity.

We should optimize the layout of productive forces and industrial structure, strengthen financial support for the real economy, curb the rising trend of leverage ratio of non-financial enterprises and reduce the asset liability ratio. We should increase tax reduction and fee reduction, especially the efforts to clean up fees related to enterprises, reduce the cost of essential elements and all kinds of paction costs, especially institutional paction costs, so that the real economy can bring new vitality and new advantages.

We should further promote the structural reform of the supply side of agriculture, actively readjust the agricultural structure, reform and improve the price formation mechanism and purchasing and storage system of important agricultural products, and improve policies such as agricultural subsidies, investment, credit, insurance, land use, support agricultural technology innovation, deepen the reform of the rural property right system, accelerate the development of the 123 industry in rural areas, and speed up the development of new agricultural development momentum.

Three, we should focus on expanding effective demand and stabilizing the macro environment.

To maintain steady growth of consumption and continue to promote consumption expansion, we need to expand investment effectively, promote coordinated development of urban and rural areas, promote three strategies, create new functional platforms such as state-level new districts, comprehensive innovation and reform experimentation area, and constantly cultivate new growth axis and growth belt.

Four, we should focus on prevention and control.

We must firmly defend the bottom line.

We must put the prevention and control of financial risks in a more important position, deepen the financial system reform through prudent monetary policy, precise industrial policies and land policies, accelerate the establishment of a regulatory coordination mechanism, and properly handle non-performing assets, so as to ensure that there is no systemic risk.

It is necessary to insist on the location of the city as a result of the real strategy of the stock market, in accordance with the positioning of "the house is used to live instead of frying", and to classify and control the long term mechanism to accelerate the sound and healthy development of the real estate industry and control the excessive flow of credit capital to the real estate industry.

The five is to ensure the improvement of people's livelihood and enhance people's sense of achievement.

Yang Weimin, deputy director of the office of the central financial and economic leadership group, said that this year is the deepening year of structural reforms on the supply side. Deepening has two meanings: first, the expansion of the scope and tasks, extending from last year's "three to one reduction and one subsidy" to four aspects of this year's "three go down and one subsidy", the structural reform of agricultural supply side, the revitalization of the real economy, and the steady and healthy development of the real estate market. At the same time, the industry of capacity expansion has been expanded; two, the means should be deepened, and more market-oriented and legalized means should be used to reform.

For example, in terms of capacity, we should not only focus on capacity management, but also study what kind of market-oriented means to achieve.

He said that the structural reform of supply side was promoted because

There are short-term problems in operation. The root causes are major structural imbalances, such as the structural imbalance between supply and demand of the real economy. The two is the major structural imbalances. The fundamental reason is institutional obstacles, which make the market fail to give full play to the decisive role of the allocation of resources, and the government has not played its due role better.

China's supply side structural reform is to solve this major structural imbalance through institutional reform.

Although great progress has been made since the deepening of the reform, we need to further increase the government's direct allocation of resources.

Zheng Zhijie, governor of the State Development Bank, said in his speech that the key to advancing the structural reform of the supply side is to improve industrial innovation capability and core competitiveness.

We must grasp the opportunities brought by the new round of industrial revolution and digital economy, vigorously promote scientific and technological innovation and institutional innovation, develop advanced manufacturing industries, and focus on pforming traditional industries with new technologies and new formats to promote economic development from a low end.

Moving towards the middle and high end, reshape the new driving force of economic development.

Zheng Zhijie said that in 2017, CDB will consolidate the achievements of "three down, one subsidy and one subsidy", effectively dispose of Botany enterprises, reduce the financing cost of enterprises according to local conditions, intensify efforts to support short boards, push forward major projects in 13th Five-Year, vigorously promote the development of the new generation of information technology industry in intelligent manufacturing, and promote the new urbanization based on people-oriented, and support the construction of underground integrated pipe corridors, sponge cities and characteristic towns.

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