To build a modern economic system, we must deepen supply-side structural reform.
Comrade Xi Jinping pointed out in the report of the 19th National Congress of the Communist Party of China (hereinafter referred to as the "Report") that it is necessary to adhere to the principle of quality first, give priority to efficiency, take supply-side structural reform as the main line, promote the quality change, efficiency change and power change of economic development, and improve total factor productivity.
Recently, the "Guidance Reader for the Report of the Nineteenth National Congress of the Communist Party of China" published Chen He's signed article "Deepening supply-side structural reform" (hereinafter referred to as the "Article"), which clarified the central task and main battlefield for continuing to promote supply-side reform, clarified the reform thinking system, and refined the major measures for reform.
The report of the Nineteenth National Congress of the Communist Party of China requires that improving the quality of the supply system be taken as the main direction of attack and significantly enhance the quality advantages of China's economy. The article points out that comprehensively improving the quality of products and services is the central task of improving the quality of the supply system. Accelerating the transformation of growth momentum and comprehensively accelerating the real economy, especially the level of manufacturing, is the main battlefield for improving the quality of the supply system. Strengthening the support of the basic system and strengthening the construction of infrastructure networks such as water conservancy, highways, water transportation, aviation, pipelines, power grids, information, and logistics are the basic conditions for improving the quality of the supply system.
In addition, it is necessary to give play to the role of human capital and pay more attention to mobilizing and protecting the enthusiasm of people. The article argues that people are the most active factor in productivity. To improve the quality of the supply system, two types of people are the most critical: one is the entrepreneur who is innovative and dares to do something, and the other is the craftsman and labor model.
On the one hand, the report of the Nineteenth National Congress of the Communist Party of China emphasizes that it is necessary to stimulate and protect the entrepreneurial spirit and encourage more social subjects to devote themselves to innovation and entrepreneurship. On the other hand, it is also emphasized that it is necessary to build an army of knowledgeable, skilled, and innovative laborers, carry forward the spirit of labor models and craftsmen, and create a social trend of glorious labor and a dedicated atmosphere of excellence.
The article also refines the reform measures for the five major tasks of supply-side structural reform, emphasizing the need to continue to expand production capacity, to reduce inventory due to urban policies, to actively and steadily deleverage, to implement comprehensive policies to reduce costs, and to make up for shortcomings in a solid and effective manner.
Capacity reduction is an important task of supply-side structural reform, and it is also a fundamental way to optimize the allocation of existing resources. The article makes a detailed deployment of de-capacity work. Continue to promote the steel and coal industries to resolve excess capacity, and expand the scope of de-capacity to more overcapacity industries in a timely manner. It is necessary to more strictly implement laws and regulations and standards such as environmental protection, energy consumption, technology, quality and safety, and make more use of market mechanisms to achieve survival of the fittest.
It is necessary to firmly grasp the "bull nose" of disposing of zombie enterprises, combine the reduction of production capacity with the deepening of the reform of state-owned enterprises, and the promotion of enterprise mergers and reorganizations and upgrading, properly dispose of enterprise debts, and do a good job in personnel resettlement. It is necessary to revise and improve laws and regulations on asset disposal, debt repayment, bankruptcy liquidation, etc. as soon as possible to provide legal protection for the disposal of zombie enterprises. It is necessary to increase the support of the central government for the livelihood guarantee of laid-off workers in the process of reducing production capacity, give full play to the role of local governments, and maintain the stability of the overall social situation.
In terms of destocking, the article points out that it is necessary to classify and regulate, because the city implements policies according to local conditions, focusing on solving the problem of excessive real estate inventory in third- and fourth-tier cities. Accelerate the reform of the household registration system and combine destocking with the promotion of population urbanization.
At the same time, we must adhere to the positioning that the house is used to live, not to speculate, vigorously develop the housing rental market, encourage the development of rental business such as long-term rental apartments, and accelerate the establishment and improvement of the basic real estate system and long-term mechanism.
Promoting economic deleveraging is one of the key tasks of supply-side structural reform, and it is also an important part of preventing and resolving financial risks. The article makes it clear that it is necessary to resolutely control the general floodgates of money and credit and prevent the macro leverage ratio from continuing to rise rapidly. It is necessary to regard the reduction of leverage of state-owned enterprises as the most important task, implement the market-oriented legalization of debt-to-equity swaps, and increase the intensity of equity financing. It is necessary to combine the deleveraging of enterprises with the promotion of the reform of mixed ownership of state-owned enterprises, revitalize existing assets, and optimize incremental assets. It is necessary to give play to the role of the financial market and various financial institutions and promote the merger and reorganization of enterprises. Establish an asset-liability constraint mechanism for state-owned enterprises, and strengthen the leverage constraint on their own debt. At the same time, it is necessary to standardize the borrowing behavior of local governments, strictly control the increase in local government debt, and properly dispose of existing hidden debts.
In terms of cost reduction, the article points out that it is necessary to increase efforts in tax reduction, fee reduction, and factor cost reduction. Reduce all kinds of transaction costs, especially institutional transaction costs, reduce approval links, reduce all kinds of intermediary assessment fees, and increase the supervision of illegal charges in monopoly industries and monopoly links.
In addition, it is necessary to deepen the reform of the energy, transportation, employment and other systems, reduce the cost of electricity and logistics for enterprises, and improve the flexibility of the labor market.
Making up for shortcomings is an important means to expand effective supply. The article believes that it is necessary to start from the important areas and key links that seriously restrict economic and social development and from the conspicuous problems that the masses of the people urgently need to solve, and make up for both hard and soft short boards, and make up for both development short boards and system short boards.
The article points out that private capital should be encouraged to enter the social fields such as medical care, pensions, and education, and solve the problems of education, health, food quality and safety, and ecological environment that the people have strongly strengthened anyway. It is necessary to increase the efforts to make up for shortcomings such as improving human capital, breaking through common technologies, and improving weak links in infrastructure, improve the quality of supply, and enhance the development potential.
The report of the Nineteenth National Congress of the Communist Party of China focused on the main line of supply-side reform, and made corresponding arrangements for innovation-driven, rural revitalization, coordinated regional development, economic system reform and opening up to the outside world.
The article finally proposes that the key is to deepen reform, innovate and improve the market environment for orderly competition, improve total factor productivity, improve the quality of the entire supply system, and make China's social productive forces leap to a higher level.