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    Supply-side reform gets greater boost

    By OUYANG SHIJIA and ZHOU LANXU | CHINA DAILY | Updated: 2021-01-06 07:16
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    Employees make auto parts at a foreign-funded company in Anshan, Liaoning province. [Photo/Xinhua]

    China's economy has suffered from prolonged structural contradictions and structural problems, Wang said. "We need to solve the coexistence of overcapacity and insufficient supply in the manufacturing sector, balance the supply and demand sides of the service industry, and open more industries in fields such as services, education, healthcare and care for the elderly to more market players."

    Though more efforts are needed, Wang acknowledged that the country has made considerable progress in supply-side structural reform during the past couple of years, including deleveraging and reducing excess capacity.

    Taking supply-side structural reform as the general goal has been a key part of Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era since the thought took shape in 2017 and served to guide the country's economic governance.

    First advocated by President Xi Jinping in 2015, supply-side structural reform focuses on improving productive efficiency and promoting advanced industries and innovation, in the pursuit of high-quality development.

    Xi, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, has underscored the importance of supply-side structural reform in constructing the new development pattern, which calls for building a stronger domestic market.

    The country must stick with the main task of supply-side structural reform with technological innovation as the key, to improve the quality of the supply system and leverage new supply to create new demand, Xi said at a symposium attended by Chinese scientists in Beijing in September.

    All this will help strengthen domestic economic circulation and therefore contribute to building the new development paradigm, Xi said.

    China will strengthen efforts to pursue breakthroughs in key basic technologies and products to address heavy reliance on external supply, Xiao Yaqing, minister of industry and information technology, said in an interview with People's Daily published on Tuesday.

    To modernize the industrial chain, the ministry will also make more efforts to promote the upgrading of traditional industries, nurture clusters of advanced manufacturing and support the development of enterprises, Xiao said.

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