How to realize supply-side structural reform

The inevitable requirement of adapting to the new normal of economic development

"After entering the new normal, the downward trend of new growth rate has become clear, but structural optimization and power conversion have not yet been finally realized, which requires releasing new demand and creating new supply." Kang Jia, president of Huaxia New Supply Economics Research Institute, believes that when the economic growth changes from high speed to medium speed, it is necessary to create a new power source from the supply side to hedge the downward pressure on the economy and enhance China's comprehensive competitiveness and development potential in the world.

20 15 China's emerging industries have maintained rapid growth, but some traditional industries are facing severe pressure of de-capacity and de-inventory. "Iron and steel sold cabbage prices, and coal fell to the bottom." Delegates held that at this stage, it is difficult to promote China's manufacturing industry from large to strong by relying on traditional demand-side management methods and realize the optimization and upgrading of industrial structure, and it is urgent to carry out supply-side structural reform.

"At present, China's economy is under great downward pressure, structural contradictions are prominent, demand-side problems are prominent, and more importantly, supply-side problems are prominent." Deputy Tang, deputy director of Chongqing Liangjiang New Area Management Committee, believes that to strengthen the supply-side structural reform, it is necessary to adjust the supply structure and increase effective supply to adapt to the changes in total demand and structure, and realize the leap from supply and demand to a high level of balance, which is of great significance for maintaining sustainable economic development and resolving economic structural contradictions.

At the same time, China's economy, which has entered the new normal, is facing enormous pressure on resources and environment, and needs to improve the total factor productivity through supply-side structural reform. Konka said that more than 94% of China's population lives in the southeast half, which only accounts for less than 43% of the country's land area. In this "semi-pressure" pattern, factors such as resource use, energy consumption and environmental pressure make China in a high-pressure "triple superposition" environment. To meet the challenges of resources and environment, we must speed up the transformation of economic development mode and enterprise production mode, and form systematic and high-level countermeasures on the supply side to achieve it.

Delegates believe that China is currently at a critical stage in its transition from a middle-income country to a high-income country. "In order to avoid falling into the middle income trap, we must improve the supply environment, enhance supply capacity, improve supply efficiency and optimize supply structure." Konka said.

Supply-side structural reform is not a new "planned economy"

Supply-side structural reform is a complex systematic project. Delegates believe that to promote supply-side structural reform at this stage, we should not only give full play to the role of the "invisible hand" of the market, but also give better play to the role of the "tangible hand" of the government, giving new vitality to the market, giving new impetus to enterprises and giving social creativity.

"Supply-side structural reform is not to engage in a new planned economy, but to give full play to the decisive role of the market in resource allocation. By further improving the market mechanism, we will correct the distortion of factor allocation caused by excessive dependence on administrative allocation of resources. " Konka said.

The deputies believe that emphasizing the structural reform of the supply side does not mean the withdrawal of demand management, but at the same time, efforts should be made to strengthen the structural reform of the supply side, adapt to the trend of diversified demand, high-end and service, and allocate more resources to areas that adapt to changes in market demand.

"The focus of supply-side structural reform is to liberate and develop social productive forces, promote structural adjustment through reform, reduce ineffective and low-end supply, expand effective and high-end supply, enhance the adaptability and flexibility of supply structure to demand changes, and improve total factor productivity." Deputy Zhao Jingbo, secretary of Jilin Municipal Committee of Jilin Province, believes that to promote the supply-side structural reform at present, it is necessary to further promote decentralization, relax market access, stimulate market vitality and social creativity, and at the same time, effectively reduce the burden on enterprises by reducing corporate taxes and fees, so as to untie them and let them spend more resources on structural adjustment and product upgrading.

Tang suggested that to promote the supply-side structural reform, we should pay more attention to precise efforts, give play to the role of the market, give play to the dominant position of enterprises, financial means and social governance.

Emphasis should be placed on innovation and institutional supply.

Delegates believe that, unlike the traditional demand-side management that relies on the troika of consumption, investment and export, the supply-side structural reform should focus on innovation and institutional supply, liberate and develop productive forces through comprehensive deepening reform, and release economic vitality.

"Supply-side structural reform focuses on institutional innovation." Konka believes that China's economy is still facing serious supply constraints and supply constraints, and needs substantial supply-side reform and innovative measures. At present, we should firmly grasp the innovation related to system and science and technology, promote the supply side to liberate productive forces, enhance competitiveness, lift supply constraints, promote reform and innovation to overcome difficulties, break through the barriers of solidification of interests, and fully stimulate the vitality of microeconomic entities.

"In the final analysis, the most fundamental thing to solve the structural reform obstacles on the supply side is innovation." Zhao Jingbo said that talent is the first resource to support innovation and development. In recent years, the birth rate in Northeast China has been declining continuously, and it has become a net outflow area. How to retain and make good use of talents, create a highland for innovation and entrepreneurship, and create a policy "depression" for talent introduction and training is an important task to revitalize the old industrial base in Northeast China.