With a relatively low growth rate, China's economy is just ready for supply-side structural adjustment. Using precise industrial policies to guide its adjustment can eliminate long-term accumulated investment bias. The pains of supply-side structural adjustment are bearable for China's economy, but they must not be taken care of. China's economy has sufficient potential, strong resilience, and plenty of room for maneuver. Although in the long term, the goal of structural adjustment and growth stability is the same, in the short term, overcapacity reduction will affect the GDP and fiscal revenue of some places, and deleveraging will make some corporate risks explicit. However, it should be noted that structural adjustment can release scarce resources such as idle land and credit to invest in more effective industries, thereby providing endogenous driving force for subsequent growth. Moreover, structural adjustments on the supply side are proceeding at a trough, which is full of business opportunities for prepared companies, especially superior enterprises.
