China’s economic stabilization force gradually increases and supply-side structural reform deepens

In 2017, the implementation of the “Thirteenth Five-Year Plan” entered an important year, and the supply-side structural reform entered a year of deepening. From the macroeconomic situation to supply-side structural reform, from revitalizing the real economy to the stable and healthy development of the real estate market, the outside world’s attention to China’s economic focus issues continues to increase. At the 2017 National Policy Advisory Working Conference held recently, experts from the Development Research Center of the State Council focused on hot economic issues and elaborated on their thinking.

Deepening the supply-side structural reform

In terms of the five major tasks of “three reductions, one reduction and one supplement”, Li Wei, director of the Development Research Center of the State Council, said that: In terms of production capacity, we must focus on dealing with “zombie companies” and pay more attention to using market and legal means to effectively promote the resolution of inefficient production capacity. The key to destocking is to adhere to the positioning of “houses are for living in, not for speculation”, adopt comprehensive policies based on local conditions, and accelerate the establishment of a long-term mechanism. The key to deleveraging is to actively and steadily reduce corporate leverage ratios while controlling the total leverage ratio. To reduce costs, we must continue to intensify our efforts in reducing taxes, fees, and factor costs. To remedy shortcomings, we must highlight both hard and soft weaknesses, both development and institutional weaknesses, optimize the market environment, and strengthen government services.

In terms of agricultural supply-side structural reform, Ye Xingqing, director of the Rural Economic Research Department of the Development Research Center of the State Council, said that three focus points must be grasped: First, agricultural competitiveness must be improved. On the one hand, we must fight for costs and prices, eliminate market distortions, and expand business scale; on the other hand, we must fight for features and functions, extend the industrial chain, ensure quality and safety, and expand the connotation of agriculture.

Ye Xingqing said that secondly, we must improve the sustainable development capabilities of agriculture. We will increase efforts to address outstanding environmental problems in agriculture, reduce the excessive use of chemical fertilizers and pesticides, promote the conversion and utilization of agricultural waste, and return farmland to forests, farmland to wetlands, grazing land to grassland, and livestock to beaches.

Ye Xingqing believes that new driving forces for agricultural and rural development must be cultivated from three aspects: people, land, and money. In terms of “people”, it is necessary to optimize the structure of agricultural practitioners and cultivate new farmers such as modern young farmers, leaders of new agricultural business entities, and agricultural professional managers; attach importance to the role of “returners from the city” and guide people to return to their hometowns, return to their hometowns, and work in rural areas. rural areas, introducing modern technology, production methods and business models into rural areas.

The power of macroeconomic “stability” is gradually increasing

“In the past few years, China’s economic transformation has been relatively successful in avoiding ‘stall’.” Development of the State Council Chen Changsheng, deputy director of the Macroeconomic Research Department of the Research Center, said that currently, my country’s economy is in a critical period of turning from decline to stability, and the focus of macroeconomic regulation is changing from “stopping the decline” to “improving quality.”

Chen Changsheng analyzed that after six years of continuous economic adjustment in this round of economic adjustment, 2016 saw a positive situation of rebounding prices, rising corporate profits and overall stable employment. Combining changes in the international economic cycle and domestic mid- and long-term trends, my country’s economic transformation may have entered the second half. The risk of a short-term sharp decline in economic growth is reduced, the power of “stability” is gradually increasing, and L-shaped growth is expected to transition from “one vertical” To “one horizontal line”.

“The current upward force and downward pressure on China’s economy are still in a weak balance state.” Chen Changsheng said that to start a new growth stage and achieve sustainable medium-to-high-speed growth, this year still needs to be dealt with cautiously The uncertainty of the international economy has accumulated positive conditions, promoting the continued stabilization of manufacturing investment, the stabilization of PPI, and continuing to enhance the willingness of enterprises to replenish inventories.

Constructing a long-term mechanism for real estate development

In view of the basic system and long-term mechanism to promote the stable and healthy development of the real estate market, the Market Economic Research Center of the Development Research Center of the State Council Wang Wei, director of the institute, believes that it is necessary to improve the housing supply system, promote the balance between supply and demand of commercial housing, develop a multi-level housing market, standardize and promote the development of the secondary housing market and rental market, and provide public rental housing security.

Wang Wei believes that it is necessary to reform the land supply methods and systems, establish a land supply and demand balance mechanism, promote land supply to adapt to population growth, improve urban land use efficiency, and improve the real estate financial system. Establish an adjustment mechanism to stabilize the housing financial environment; strengthen financial supervision of real estate development and the land purchase fund review system; improve policy-based housing finance policies.

Wang Wei said that it is necessary to improve fiscal and taxation adjustment and support policies, increase financial support, improve taxation adjustment in transaction links, and promote real estate tax reform in a timely manner.

Rebuilding consumer confidence and revitalizing the real economy

“In recent years, the development of my country’s real economy has encountered many difficulties and problems, mainly in terms of supply and demand. Structural imbalance, imbalance between the real economy and finance, and imbalance between the real economy and real estate.” Li Wei said.

Li Wei analyzed that to revitalize the real economy, we must first rebuild consumer confidence in domestic products and open up the intermediate links from demand to enterprises.

He said that it is necessary to implement “Made in China 2025”, focus on improving the innovation capabilities of enterprises, and successfully realize the transformation and upgrading to “digital, networked and intelligent” (Aiji, Net worth, Information). As soon as possibleCreate a number of strategic industrial clusters with core competitiveness and create a large number of well-known brands that are accepted and recognized by domestic and foreign markets.