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    The New Normal Calls For Supply Side Structural Reform. China'S Economy Has New Problems.

    2017/6/21 22:56:00 203

    Supply SideStructural ReformEconomic Policy

    The National Bureau of Statistics announced the economic performance of our country in the first years of May.

    The data show that the supply side structural reform continues to exert strength, and the coordination and stability of national economic development continue to increase.

    Overall stability, Naka Yujin, stability and better, China's economy has passed the signal of growth stability and quality.

    From the eleventh meeting of the central financial and economic leading group held in November 2015, the first time put forward "to focus on strengthening the structural reform of the supply side". By January this year, the Political Bureau of the CPC Central Committee conducted thirty-eighth collective studies on the in-depth structural reform of the supply side. Over the past year, general secretary Xi Jinping has repeatedly expounded the realistic basis, profound connotation, fundamental purpose and work requirements of the structural reform of the supply side.

    General secretary Xi Jinping pointed out that to push forward the structural reform of supply side, we should deal well with the relationship between "subtraction" and "addition".

    This provides a correct methodology for deepening the structural reform of supply side.

    "The way of culture and martial arts is relaxed."

    In upholding the general keynote of steady progress, China's endogenous economic growth has been continuously released, and between the "reduction" and "Canada", we have handed out beautiful answers to history and people.

    After more than 30 years of rapid development, China's economy has made remarkable achievements, but it has also accumulated some structural problems. The economy is facing the structural imbalance of supply, finance and real economy.

    Real economy

    The imbalance, the imbalance between real estate and real economy.

    How to achieve economic development "kinetic energy switching" to achieve "upgrading shift" and "middle income trap" has become a difficult problem facing China's economy.

    "Structural problems, both sides of supply and demand, but the main aspect of the contradiction is on the supply side.

    The structural reform on the supply side is a crucial battle with a long-term relationship. "

    General secretary Xi Jinping pointed out the crux of the problem.

    To solve some problems in the development of the national economy, we must take the structural reform of the supply side as the main direction, which is an inevitable choice for China's economic development to enter the new normal.

    How to win the hard battle of promoting supply side structural reform? General Secretary Xi Jinping has pointed out a clear path: we must grasp the "addition" and "subtraction", increase the input of factors, increase the total economic volume, reduce inefficient and low-end supply, expand effective and high-end supply, and raise total factor productivity.

    In other words, to push forward the structural reform of supply side, we need to do "subtraction" and "addition" together.

    On the one hand, we should eliminate backward and excess production capacity, make more resources for the development of new industries, and "advance chess" to optimize and upgrade the industrial structure; on the other hand, we must speed up the pformation of traditional industries, strengthen and expand the advantageous industries, and cultivate new industries.

    No matter what is done, we should try our best to reform the old.

    If we do well in this crucial battle, we need to dialectically think about reducing the supply of the low end and inefficient supply, and go to capacity, inventory and leverage, so as to allow room for economic development.

    Because inefficient and low-end supplies not only occupy a lot of resources and energy, but also cause huge waste and occupy the space of economic development.

    General secretary Xi Jinping pointed out that while reducing, at the same time, we should also reduce the accuracy, avoid accidental injury, hold the "nose", grasp the root cause of the problem and make precise efforts.

    For example, in the elimination of excess capacity, we should make up for the short board of insufficient capacity in some industries. At the same time, we need to guard against the excessive rise of housing prices in the second tier cities while pushing forward the three or four line cities' real estate inventory. While deleveraging, enterprises with low leverage and high growth should also increase their leverage according to their needs.

    Following the road, success is achieved.

    In accordance with the path specified by general secretary Xi Jinping, China's supply side structural reform continued to exert force, with precise implementation of "reduction": smooth progress in production capacity, steel and coal respectively completed 60% and more than 40% of the capacity production tasks; the effect of inventory clearance was obvious; the commercial housing sale area decreased by 8.5% at the end of 5 compared with the same month; deleveraging progressed steadily; at the end of 4, the asset liability ratio of Industrial Enterprises above designated size was 56.2%, down 0.6 percentage points compared with the same period last year.

    In short,

    national economy

    The trend of steady progress and steady progress has been sustained. The rapid growth of new kinetic energy has promoted the upgrading and upgrading of traditional industries, and has injected a surge of power for economic development.

    General secretary Xi Jinping stressed: "adding is to expand effective supply and high-end supply, shorten the board, improve people's livelihood, accelerate the development of new technologies, new industries and new products, and cultivate new impetus for economic growth."

    At present, all over the country, while introducing "subtraction" measures such as inventory disposal and disposal of "zombie enterprises", efforts have been made to increase poverty alleviation, water conservancy facilities investment, make up for short environmental conditions, and speed up the improvement of people's livelihood.

    But "addition" can not be "a swarm of bees", to avoid duplication of construction, to avoid "strong stimulation" and "sprinkle pepper noodles."

    For example, in recent years, there are some phenomena such as photovoltaic heat and repeated construction of wind power equipment in some areas.

    To do a good job of supply side structural reform and to develop new and high technology industries, we must prevent blind investment, redundant construction and waste of resources.

    General secretary Xi Jinping clearly pointed out that we should increase the supply of public products and public services urgently needed, narrow the gap between urban and rural areas and public service levels, and step up efforts to tackle poverty.

    We should reorganize the stock and increase the quality, promote the pformation and upgrading of traditional industries, and cultivate new industries together to revitalize the real economy.

    We should focus on the key points of economic competitiveness, the direction of consumption upgrading, the short board on the supply side, and the bottleneck of social development. We should co-ordinate the deployment of innovation chains and industrial chains, and comprehensively enhance the innovation capability and increase the contribution rate of scientific and technological progress to economic growth.

    The latest economic data show that

    Supply side

    Under the continuous efforts of structural reform, China's industrial structure has been constantly optimized. While reducing inefficient supply, the middle and high-end supply has been expanded, and the industrial structure has been optimized and adjusted. The quality of service and product supply has been steadily improved. New industries such as sharing economy, sharing economy and smart home are developing rapidly.

    The "subtraction" and "addition" of supply side structural reform are not a simple mathematical formula, but an era proposition.

    We will unswervingly push forward the structural reform of the supply side, focus on nurturing new kinetic energy and stimulate the vitality of economic and social development. China's economic pformation and upgrading will gain strong momentum, and the continuous progress of China's economy will create more opportunities for the recovery of the world economy.

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