Promoting supply-side structural reform is a major innovation to adapt to 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 promote the high-quality development of China's economy.

General Secretary Xi Jinping stressed that promoting supply-side structural reform is a tough battle, and it is necessary to win this tough battle with a spirit of forging ahead and daring to take responsibility, and a down-to-earth and hard-working work style.

It is necessary to take the promotion of supply-side structural reform as the main line of economic development and economic work in the current and future periods, change the mode of development, cultivate the driving force of innovation, and build a new engine and new support for the sustained and healthy development of the economy.

Supply and demand are the two basic aspects of the internal relationship of the market economy, and they are the dialectical relationship of opposition and unity.

Without demand, supply cannot be realized, and new demand can give rise to new supply; Without supply, demand cannot be satisfied, and new supply can create new demand.

Supply-side management and demand-side management are the two basic means of macroeconomic regulation and control. Demand-side management, focusing on solving aggregate problems; Supply-side management focuses on solving structural problems.

At present and for some time to come, the problems facing China's economic development are on both the supply and demand sides, but the main aspect of the contradiction is on the supply side.

For example, some industries and industries in China have serious overcapacity, and at the same time, a large number of key equipment, core technologies, and high-end products still rely on imports; China's agricultural development situation is very good, but the supply of some agricultural products has not well adapted to the changes in demand; Some consumer demand, which is supported by a large amount of purchasing power, cannot be effectively supplied in China, and consumers will spend a lot of money on outbound shopping,

"Haitao" shopping; Wait a minute. Facts have proved that China's demand is not insufficient, or there is no demand, but the demand has changed, but the products supplied have not changed, and the quality and service cannot keep up.

The lack of effective supply capacity has brought a large number of them

"Demand spillover", a serious outflow of spending power. To solve these structural problems, we must make efforts from the supply side and find the correct positioning in the world supply market; It is necessary to improve the supply-side structure as the main direction of attack, and realize the leap from a low-level supply-demand balance to a high-level supply-demand balance.

In the final analysis, the fundamental of supply-side structural reform is to make China's supply capacity better meet the growing needs of the people for a better life.

Throughout the history of world economic development, the choice of whether to focus on the supply side or the demand side of economic policy should be made according to a country's macroeconomic situation.

It is one-sided to abandon the demand side to talk about the supply side or to give up the supply side to talk about the demand side, and the two are not an alternative relationship that goes to one or the other, but should cooperate with each other and coordinate the advancement.

The supply-side structural reform emphasizes both supply and demand, highlights the development of social productive forces and pays attention to the improvement of production relations, gives play to the decisive role of the market in the allocation of resources and gives better play to the role of the government, and focuses on the present and the long term.

The connotation of promoting reform is to enhance the adaptability and flexibility of the supply-side structure to changes in demand, constantly let new demand give birth to new supply, let new supply create new demand, and achieve economic development in mutual promotion.

From the perspective of political economy, the fundamental of supply-side structural reform is to enable China's supply capacity to better meet the growing needs of the broad masses of people for a better life, so as to achieve the goal of socialist production.

Supply-side structural reform should not be regarded as a copy of the Western supply-side school, and it is even more important to prevent some people from using their explanations to propagate it

"Neoliberalism". In recent years, China's supply-side structural reform has been deepened, the economic structure has been continuously optimized, and at the same time, it has also played an active role in leading global economic governance.

The 2016 G20 Hangzhou Summit will:

"Structural reforms" are included in the outcome document and included in the guidelines for action on global economic governance. The international community generally believes that China has become a leader in global structural reform.

The focus of supply-side structural reform is to liberate and develop the social productive forces, promote structural adjustment by means of reform, reduce ineffective and low-end supply, expand effective and medium-to-high-end supply, enhance the adaptability and flexibility of the supply structure to changes in demand, and improve total factor productivity.

To win the tough battle of supply-side structural reform, we must follow the deployment of the 19th National Congress of the Communist Party of China, take improving the quality of the supply system as the main direction of attack, and focus on reducing production capacity, inventory, leverage, cost reduction, and making up for shortcomings

"Broken",

"Stand",

"Down" efforts. It is necessary to vigorously eliminate ineffective supply and dispose of it

"Zombie Enterprise", the

"Weaning" on it

"Weaning", those who should be cut off the loan will be cut off and resolutely pulled out

"Infusion tube",

"Ventilator". It is necessary to vigorously cultivate new kinetic energy, strengthen scientific and technological innovation, develop green industries, cultivate new formats and new models, and form new growth points in the fields of medium and high-end consumption, innovation leadership, green and low-carbon, sharing economy, modern supply chain, and human capital services.

It is necessary to vigorously reduce the cost of the real economy, with the goal of reducing the burden on enterprises, study the reduction of the value-added tax rate of the manufacturing industry, continue to clean up and standardize the fees related to enterprises, and take measures to solve the problems of excessive fees.

It is necessary to deepen the supply-side structural reform, optimize the allocation of stock resources, expand high-quality incremental supply, achieve a higher level and higher quality dynamic balance between supply and demand, and significantly enhance the quality advantage of China's economy.