One change will certainly be deeply felt in China's economy in 2016 and more time come: supply-side structural reform.
"Supply-side structural reform is an urgent task that cannot afford any delay, otherwise the 'sickness' will become graver," an authoritative figure told the People's Daily in an exclusive interview, published on its front page and the whole second page on Monday.
The People's Daily, the flagship newspaper of the ruling Communist Party of China, didn't disclose the name of the figure, but the term "authoritative figure" is usually used for high-level officials.
Supply-side reform is the latest buzzword used by Chinese leaders and economists as the country moves to address outstanding issues like excess capacity, housing overhang, and "zombie" state-owned enterprises (SOEs) with poor profitability.
"There is now a window for us to roll out supply-side structural reform, but the opportunity won't stay there forever," the unnamed figure said.
LESS IS MORE
China enjoyed fast economic growth for around three decades, fueled by capital investment, exports and consumption, which are usually regarded as being on the demand side. But these growth drivers have been losing steam as local government debts mount to high levels and global demand weakens.
Increasing attention has been turned to stimulating business through tax cuts, entrepreneurship and innovation while phasing out excess capacity. Such measures are expected to increase the supply of high-quality goods and services, lower prices and boost consumption.
According to this authoritative figure, the supply-side structural reform is the remedy for economy ills chosen by the central leadership after analyzing the conomic situation.
"It's a pass that we must go through," said the figure, adding it is also a fundamental approach to address medium and long-term economic issues.
The figure urged quickening implementation of the supply-side structural reform.
