On the current economic situation of China from the perspective of supply and demand

At the specific stage of current economic development, the industries in China economy can be roughly divided into two categories: one is the traditional industries represented by steel, chemicals and real estate, and the other is the emerging industries represented by high-end manufacturing, internet plus and cultural creativity. After the rapid development in the first decade of this century, traditional industries are already in the second half of the production cycle. Emerging industries are still in the first half of the production cycle and are in the ascendant. "De-capacity" through mergers and acquisitions, bankruptcy liquidation, etc. will help to guide the incremental or even partial stock of factor resources to shift from traditional industries to emerging industries, thus improving the overall efficiency of factor resources. "Cost reduction" can not only reduce the burden of traditional industries in the downward period, but also help them tide over the difficulties through the combination of decentralization, tax reduction and fee reduction, and financial and electricity price marketization reform. What is more important is to reduce the institutional transaction costs for emerging industries and let them go into battle lightly. Combining the citizenization of migrant workers, housing system reform and real estate "destocking" will not only drive the demand-side real estate market, but also increase the effective labor supply. It is the premise of supply-side upgrading to "fill the shortcomings" in terms of precise poverty alleviation, supporting technological transformation and equipment innovation of enterprises, upgrading human capital, and building soft and hard infrastructure. Finally, preventing financial risks is the bottom line of development and reform. The high leverage of local governments and enterprise departments has become a restrictive factor for the sustained and healthy development of macro-economy, and appropriate measures need to be taken to "turn leverage" or "de-leverage". The meeting proposed to deal with credit default according to law, which laid the foundation for breaking rigid payment and rectifying financial order. Breaking rigid exchange is a necessary condition for the effective allocation of financial resources.