Abstract

The Central Economic Working Conference held at the end of 2016 pointed out that the outstanding conflicts and problems facing the current economic situation of China, though partly affected by periodicity and quantitative factors, were rooted in the major structural imbalance. In recent years, as the economic development enters the new normal, the demand side has seen a substantial decline in growth rate and obvious changes in its structure, while the supply side is adjusting slowly due to multiple factors, resulting in supply-demand imbalance and instability of economy. The Chinese economy can remain steady on the new platform of medium- to high-speed growth only if we further the supply-side structural reform, remove institutional obstacles that constrain the supply-side adjustment, and strike a balance between supply and demand in terms of total quantity and structure.