2016年CRI Supply-side reform China's top task for 2017

 

At a meeting held over the weekend, the National Development and Reform Commission said 2016 marked the outset of the supply-side reforms, and the country has made headway in cutting industrial overcapacity, destocking, de-leveraging, lowering costs and improving weak links.

According to the NDRC, the past year has also seen a favorable change in the supply-demand relationship which has led to improved profitability for companies in the real economy.

NDRC director Xu Shaoshi said the next step was for the government to do more to help enterprises better manage their businesses according to market demand, including trimming power usage.

"In the next year, we should act in line with the actual conditions to consolidate¹ this year's achievement and face up to challenges. More market-oriented and rule-based measures and technical standards should be adopted. If a company can manage its operation by relying on market regulation and make its own decisions, the government should not interfere². Just leave it to the market, to the enterprises to do these things."

To further promote supply-side reform, Xu Shaoshi said several measures would be adopted to control the expansion of production capacity, eliminate backward production capacity and fight against illegal activities.

He said the country will take concrete steps to further reduce trading costs so as to lighten the burden for enterprises.

China's policymakers started to press ahead with reforms on the supply side at the end of 2015 in hope of solving economic structural³ problems and fostering new growth engines, with demand-side support, such as investment stimulus⁴, become less effective than before.

At a major annual economic conference last week, the country's policymakers decided⁵ to carry on with the reforms.

According to the tone-setting Central Economic Work Conference, to deepen supply-side structural reform, the country will expand reform measures to more areas: overhaul⁶ the supply-side of agriculture, revive the real economy and stabilize⁷ the property sector⁸.

Economists⁹ suggest the effort to promote supply-side reform is in at the heart of China's economic reform endeavors.

Zhu Zhixin with the China Center for International Economic Exchanges says supply-side reforms have wide-ranging implications.

"Generally speaking, supply-side reforms should not only focus on a steady and sustainable development of the macro economy, but also address risks in the financial and real estate sectors¹⁰, ensuring achievements of the reform play an enduring role in the country's development."

Yang Weimin with the Central Leading Group on Finance and Economic Affairs suggests efforts will be made in areas of particular importance.

"On one hand, we need to improve the mechanism¹¹ that can ensure the market's decisive role in resource distribution, break monopoly and give full play to the role of the pricing mechanisms¹² in resource allocation. On the other hand, we should further encourage innovation and improve profitability of market players to explore greater market potential."

For CRI, this is Guan Chao.

1 consolidate   

v.使加固，使加强；(把...)联为一体，合并

参考例句：

• The two banks will consolidate in July next year. 这两家银行明年7月将合并。
• The government hoped to consolidate ten states to form three new ones.政府希望把十个州合并成三个新的州。

2 interfere   

v.(in)干涉，干预；(with)妨碍，打扰

参考例句：

• If we interfere, it may do more harm than good.如果我们干预的话，可能弊多利少。
• When others interfere in the affair,it always makes troubles. 别人一卷入这一事件，棘手的事情就来了。

3 structural   

adj.构造的，组织的，建筑（用）的

参考例句：

• The storm caused no structural damage.风暴没有造成建筑结构方面的破坏。
• The North American continent is made up of three great structural entities.北美大陆是由三个构造单元组成的。

4 stimulus   

n.刺激，刺激物，促进因素，引起兴奋的事物

参考例句：

• Regard each failure as a stimulus to further efforts.把每次失利看成对进一步努力的激励。
• Light is a stimulus to growth in plants.光是促进植物生长的一个因素。

5 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

6 overhaul   

v./n.大修，仔细检查

参考例句：

• Master Worker Wang is responsible for the overhaul of this grinder.王师傅主修这台磨床。
• It is generally appreciated that the rail network needs a complete overhaul.众所周知，铁路系统需要大检修。

7 stabilize   

vt.（使）稳定，使稳固，使稳定平衡；vi.稳定

参考例句：

• They are eager to stabilize currencies.他们急于稳定货币。
• His blood pressure tended to stabilize.他的血压趋向稳定。

8 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

9 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

10 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

11 mechanism   

n.机械装置；机构，结构

参考例句：

• The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
• The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。

12 mechanisms   

n.机械( mechanism的名词复数 )；机械装置；[生物学] 机制；机械作用

参考例句：

• The research will provide direct insight into molecular mechanisms. 这项研究将使人能够直接地了解分子的机理。 来自《简明英汉词典》
• He explained how the two mechanisms worked. 他解释这两台机械装置是如何工作的。 来自《简明英汉词典》