Central People Government of People Re : Structural reform to boost economy

BEIJING - China's latest efforts in promoting 'supply-side structural reform' is a timely strategy by the government to adapt to the current situation and open up new ways for economic development, overseas experts have said.

As the world's second largest economy strives to sustain growth while the effectiveness of traditional demand-side policy support wanes, it is turning to the other side, the supply side, for new vitality.

At a recently concluded key economic meeting in Beijing, the government pledged to take steps to push forward 'supply-side structural reform' in 2016 and beyond to support growth through new demand and productivity.

Overseas experts said that amid a great change of the global economic situation, the Chinese economy is gaining stream and unleashing great potential thanks to the new policy and relevant measures.

On the essence of 'supply-side structural reform', Peter Drysdale, economist and editor of the East Asia Forum at the Australian National University, said that with the decrease of a dividend in both population and resources, as well as the reduction in investment scale and marginal efficiency, China should raise productivity so as to improve economic benefits.

The reform aims to give full play to the role of the market, adjust the relationship between supply and demand, and lift the total factor productivity through such measures as fiscal and tax reform, structural adjustment, streamlining administration and delegating power to lower levels, and industrial innovation, he said.

Jeremy Rifkin, a renowned American economic observer, said China's new economy has seen unprecedented opportunity for development thanks to a series of new policies and measures within the framework of 'supply-side structural reform'.