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Supply-side Structural Reform: A Discussion of Recent Operational Objectives

Wang Dongjing;  
From the perspective of operating level, the near-term goal of supply-side structural reform is to reduce capacity, reduce inventory, de-leveraging, lower costs and make up the short board. The key of reducing capacity and inventory is to play the role of the price mechanism and to make the price adjust market supply and demand.Reducing leverage could be in the control of investment leverage and be in the special control of consumption leverage. Reducing cost should consider that depreciation does not cover the cost of enterprises. Making up the short board could make the government play a leading role in the fields of market failure.
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