The Central Economic Work Conference held in December 14-16, 2016 made an overall deployment of China’s economic work in 2017. General Secretary Xi Jinping proposed that we need to follow the general guidelines to maintain the stability of macro policies, the targeting of industrial policies, the flexibility of micro policies, and the practicality of reform policies, and ensure that social policies meet people’s basic needs. These are the five pillar policies to promote economic and social development at present. Among them, keeping industrial policies targeted means that we should clearly identify the direction of structural reform. Although there are cyclical and aggregate factors in the prominent contradictions and problems in China's economic performance, the root cause lies in major structural imbalances and the resulting unsmooth economic cycles. Therefore, we must make efforts to achieve new dynamic balance between supply and demand through the supply-side structural reforms.
