SUBSCRIBE TO CHINA
This year marks the beginning of China's 13th Five-Year Plan (2016-2020), a critical period that may decide whether the nation can achieve its goal of building a moderately prosperous society in all aspects by 2020. Due to economic downturn pressure during its "new normal" period, China faces various challenges in pushing forward its structural reform this year.
In March, China will hold its annual "two sessions" of the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC), which will review major issues concerning the national economy and social development and promulgate a series of policies for the future development of China, the world's second largest economy.
What will be the hot topics of the two sessions? What results do people most want to see? We'd like to share a few of our predictions.
"Supply-side reform" has been a buzzword since early November 2015, when Chinese President Xi Jinping first mentioned it at a top-level economic conference. Chinese policymakers are now pivoting towards the "supply side," as an antithesis to the long-favored Keynesian demand-side management. The supply-side reform aims to upgrade China's economy through liberalizing productivity and enhancing competitiveness. From a short-term perspective, its purpose is to relieve pressure from the economic slowdown. For the long-term, it eyes solving contradictions between supply and demand and improving the quality and efficiency of China's economic growth through structural reform. Understandably, exactly how to build a new economic structure through supply-side reform will be a hot topic at the upcoming two sessions.