In recent years, some enterprises in China have successfully explored in promoting supply-side structural reform. For example, in the past few years, all kinds of mobile phones in China's market competed for beauty, including foreign brands such as Motorola and Nokia, as well as mobile phones produced by domestic manufacturers. In this case, some enterprises in China start from the production end, adhere to independent innovation, aim at the high-end market, and launch high-end smart phones, which meet people's requirements for more diverse functions, faster speed, clearer images, and more fashionable appearance, and their market share at home and abroad is rising. The competition in the world mobile phone market is also very fierce, and the famous Motorola, Nokia, and Ericsson mobile phones are no longer in the limelight, and even have become a passing cloud. After New Year's Day, I went to Chongqing to see a company that produced thin-film transistor liquid crystal displays that were a successful example of supply-side reform. In recent years, Chongqing notebook computers and other intelligent terminal products and self-owned brand automobile industry have also grown rapidly, forming the world's largest electronic information industry cluster and the largest domestic automobile industry cluster, with 1 out of every 3 notebook computers in the world coming from Chongqing. This shows that as long as the market is aimed at promoting supply-side reform, the road of industrial optimization and upgrading can be completely broken out.

——Speech at the Seminar on the Study and Implementation of the Spirit of the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China (January 18, 2016)

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Smartphones have opened the door to the mobile Internet era, and through the changes in the mobile phone market, we can also get a glimpse of the improvement of China's innovation capacity and the effectiveness of supply-side structural reform. A few years ago, brands such as Nokia and Motorola still dominated the Chinese mobile phone market, but in recent years, shipments and market share have continued to decline. In 2015, the user attention of domestic mobile phones reached 51.3%, which has surpassed international brands, which means that the influence of domestic mobile phone manufacturers is catching up with international manufacturers; In the first three quarters of 2016, the domestic smartphone market shipped a total of 371 million units, with Huawei, OPPO, VIVO, Apple and Xiaomi ranking among the top five, of which 4 are domestic brands. Not only that, domestic mobile phones are also actively going out. In the first half of 2016, Lenovo and Xiaomi ranked second and third respectively in the list of best-selling brands in the Indian mobile phone market, and Huawei's shipments in Europe also doubled in the first half of the year.

Chongqing's laptop production is also a successful case of supply-side structural reform. From the beginning of the negotiation of the introduction of laptops to become the world's largest laptop production base, Chongqing only took 7 years. In 2014, the output of smart terminal products was close to 200 million units (pieces), of which the production of notebook computers reached 61 million units, accounting for more than one-third of the global output. BOE Technology Group Co., Ltd., which Xi Jinping inspected in Chongqing, is the world's leading provider of semiconductor display technology, products and services, with a marketing and service system covering Europe, the United States, Asia and other major regions in the world. The 8.5th generation thin-film transistor put into production by BOE is of great strategic significance for China's semiconductor display industry to catch up with and surpass the world's advanced level and promote the comprehensive development of China's electronic information industry. At the same time, BOE puts innovation in the first place, with 5,116 new patent applications in 2014 and 6,156 new patent applications in 2015, and more than 40,000 patents can be used at present. Innovation is not only the primary requirement of the new development concept, but also an inevitable measure to promote supply-side reform.

By sharing the story of the changes in the domestic mobile phone market pattern, Xi Jinping told the development breakthrough of Chongqing's notebook computer and self-owned brand automobile industry, illustrated the importance of China's innovation ability improvement and supply-side structural reform, and clarified such a law of economic development to leading cadres at all levels: once the supply-side achieves successful disruptive innovation, the market will respond positively. In the final analysis, a country's development is fundamentally driven by the supply side.

In the face of downward pressure on the economy, how to adapt to and lead the new normal of the economy? How to realize the transformation and upgrading of economic development? Xi Jinping has repeatedly emphasized that efforts to strengthen supply-side structural reform are "a major innovation to adapt to and lead the new normal of economic development, an active choice to adapt to the new situation of comprehensive national strength competition after the international financial crisis, and an inevitable requirement to adapt to the new normal of China's economic development." Xi Jinping also said that "every technological and industrial revolution has brought about an increase in productivity and created unimaginable supply capacity." This requires leading cadres at all levels to strengthen their initiative and enthusiasm for promoting supply-side structural reform, implement the "five major tasks", strive to improve the quality and efficiency of the supply system, and promote the transformation and upgrading of China's economy in the phoenix nirvana.