2015年CRI Supply-side Reform Aims at Removing Regulatory Barriers: Observers

 

In contrast to demand-side stimulus¹ that focuses more on investment, consumption and exports, the new push toward supply-side economics is mainly aimed at removing regulatory barriers and giving the market a bigger say which products they like and don't like.

To get companies on-board with the policy, tax cuts, lower corporate² borrowing costs, new incentives³ for specific industries, tackling factory overcapacity and property inventories⁴ are going to be made priorities.

Addressing a meeting about China's economy for the 2015-2016 period, Yang Weimin with the Office of the Central Leading Group for Finance and Economic Affairs, says the new reform comes at a time when previous strategies are becoming less effective, and their side effects are actually creating new problems.

"There has been a severe structural⁵ problems resulting from a supply glut⁶ and insufficient⁷ demand. For example, a large part of the new loans which have been put out have been used to repay old ones. They've also been used to invest in low-return projects or flown into the virtual economy. At the same time, the capital shortage in the real economy continues to worsen."

Addressing around 300 government officials, think tanks, and entrepreneurs at the meeting, Yang Weimin also says institutional problems are hampering⁸ the market from playing a role in determining where the market is headed.

"For example, the exit strategy for overcapacity-plagued "zombie companies" often doesn't work because of opposition⁹ from local governments and banks."

China's economy grew 6.9 percent in the third quarter of the year, the weakest pace of growth since the start of the global financial crisis.

Overcapacity, profit declines, as well as rising non-performing loans are mainly blamed for dragging down the growth.

When it comes to cutting industrial overcapacity, Zeng Peiyan, head of China Center for International Economic Exchanges, says a number of factors need to be looked at.

"The supply-demand balance should be always kept in mind when it comes to cutting overcapacity, property inventories and reducing leverage¹⁰ and costs. It's also necessary to improve policies to prevent risk while trying to stabilize¹¹ the economy."

Zeng Peiyan, a former vice-Premier, is also calling for a change to the country's economy performance assessment¹² system to get a better handle on exactly how the economy is doing.

"Increasing development by optimizing¹³ resources requires the establishment of new economic performance-measuring system that attaches equal importance to both the total-factor productivity and the growth of GDP."

Total-factor productivity is an economic variable which accounts for effects in total output not caused by traditionally-measured inputs¹⁴.

Many economists¹⁵ today view it as a measure of an economy's long-term technological¹⁶ development.

The People's Bank of China, China's central bank, is projecting a baseline forecast for the country's growth next year at 6.8 percent.

It says factors such as the recovery of real estate sales and some modest improvement in external demand should help underpin¹⁷ broader growth.

For CRI, this is Luo Wen.

1 stimulus   

n.刺激，刺激物，促进因素，引起兴奋的事物

参考例句：

• Regard each failure as a stimulus to further efforts.把每次失利看成对进一步努力的激励。
• Light is a stimulus to growth in plants.光是促进植物生长的一个因素。

2 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

3 incentives   

激励某人做某事的事物( incentive的名词复数 )； 刺激； 诱因； 动机

参考例句：

• tax incentives to encourage savings 鼓励储蓄的税收措施
• Furthermore, subsidies provide incentives only for investments in equipment. 更有甚者，提供津贴仅是为鼓励增添设备的投资。 来自英汉非文学 - 环境法 - 环境法

4 inventories   

n.总结( inventory的名词复数 )；细账；存货清单（或财产目录）的编制

参考例句：

• In other cases, such as inventories, inputs and outputs are both continuous. 在另一些情况下，比如存货，其投入和产出都是持续不断的。
• The store must clear its winter inventories by April 1st. 该店必须在4月1日前售清冬季存货。

5 structural   

adj.构造的，组织的，建筑（用）的

参考例句：

• The storm caused no structural damage.风暴没有造成建筑结构方面的破坏。
• The North American continent is made up of three great structural entities.北美大陆是由三个构造单元组成的。

6 glut   

n.存货过多，供过于求；v.狼吞虎咽

参考例句：

• The glut of coffee led to a sharp drop in prices.咖啡供过于求道致价格急剧下跌。
• There's a glut of agricultural products in Western Europe.西欧的农产品供过于求。

7 insufficient   

adj.(for，of)不足的，不够的

参考例句：

• There was insufficient evidence to convict him.没有足够证据给他定罪。
• In their day scientific knowledge was insufficient to settle the matter.在他们的时代，科学知识还不能足以解决这些问题。

8 hampering   

妨碍，束缚，限制( hamper的现在分词 )

参考例句：

• So fraud on cows and development aid is seriously hampering growth. 因此在牛问题上和发展补助上的诈骗严重阻碍了发展。
• Short-termism, carbon-trading, disputing the science-are hampering the implementation of direct economically-led objectives. 短效主义，出售二氧化碳，进行科学辩论，这些都不利于实现以经济为主导的直接目标。

9 opposition   

n.反对，敌对

参考例句：

• The party leader is facing opposition in his own backyard.该党领袖在自己的党內遇到了反对。
• The police tried to break down the prisoner's opposition.警察设法制住了那个囚犯的反抗。

10 leverage   

n.力量，影响；杠杆作用，杠杆的力量

参考例句：

• We'll have to use leverage to move this huge rock.我们不得不借助杠杆之力来移动这块巨石。
• He failed in the project because he could gain no leverage. 因为他没有影响力，他的计划失败了。

11 stabilize   

vt.（使）稳定，使稳固，使稳定平衡；vi.稳定

参考例句：

• They are eager to stabilize currencies.他们急于稳定货币。
• His blood pressure tended to stabilize.他的血压趋向稳定。

12 assessment   

n.评价；评估；对财产的估价，被估定的金额

参考例句：

• This is a very perceptive assessment of the situation.这是一个对该情况的极富洞察力的评价。
• What is your assessment of the situation?你对时局的看法如何？

13 optimizing   

v.使最优化，使尽可能有效( optimize的现在分词 )；最佳化；寻优

参考例句：

• This model may be classified as either an optimizing model or simulation model. 这个模型可分为最佳化模型或模拟模型。 来自辞典例句
• Need to design crossover operator rationally while optimizing ANN. 优化网络需要合理设计交叉算子。 来自互联网

14 inputs   

n.输入( input的名词复数 )；投入；输入端；输入的数据v.把…输入电脑( input的第三人称单数 )

参考例句：

• Uncheck the inputs checked for optimization in the previous stage. 不测试那些已经测试过的优化了的以前步骤的inputs.（变量参数）。 来自互联网
• Just in case, save in a file the inputs obtained at the previous stage. 以防万一，保存以前步骤获得的inputs（变量参数值）到一个文件中去。 来自互联网

15 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

16 technological   

adj.技术的；工艺的

参考例句：

• A successful company must keep up with the pace of technological change.一家成功的公司必须得跟上技术变革的步伐。
• Today,the pace of life is increasing with technological advancements.当今， 随着科技进步，生活节奏不断增快。

17 underpin   

v.加固，支撑

参考例句：

• China needs regional stability to underpin its continued economic growth.中国需要地区稳定来巩固其持续的经济增长。
• These developments are underpinned by solid progress in heavy industry.重工业的稳固发展为这些进展打下了基础。