Direct reporting network Beijing July 17th (author: Gao Wenbing) supply side structural reform is the central co-ordination of international and domestic, focusing on the current and long-term, taking into account the strategic and tactical decision-making. Promote the supply side structural reform, is to focus on improving the quality of supply, by the way of reform to promote structural adjustment, correction of distortion of factors allocation, expand the effective supply, improve the total factor productivity and better meet the needs of the broad masses of the people, and promote the sustained and healthy development of economy and society. Promote the supply side structural reform, starting from the production end of the, focus is to promote overcapacity effectively resolve, promote industrial optimization and reorganization, reduce the cost of enterprise, strategic emerging industries and modern service industry development, increase the supply of public products and services, improve the supply structure changes in demand for adaptability and flexibility.

With respect to the demand side investment, consumption and export "3 drive carriage" pulling, supply side structural reforms more emphasis on labor, land, capital and innovation resources and optimize the configuration, so as to enhance the quality of supply and supply efficiency. And the innovation of technology innovation and efficiency is the main driving force of economic development, is to enhance the supply of quality and efficiency of the focus. Supply side structural reform of the "three engines", that is, institutional change, structural optimization and upgrading of elements, the core of which is innovation. As general secretary Xi Jinping stressed that innovation has always been an important force in the development of a country, a nation, is also an important force to promote the progress of human society. For the structural reform of the supply side, its essence is to call for innovation.

Call for institutional innovation to stimulate micro economic vitality. The micro subject is the cornerstone of the development of market economy, and stimulate the micro economic vitality is an important support to promote the structural reform of the supply side. Through system innovation, can further the formation of institutions and mechanisms conducive to market and enterprise innovation, get rid of barriers to innovative institutional mechanisms, the better to release the dividends of reform, to fully activate the potential and vitality of the microscopic economic subject. To this end, the market should play a decisive role in the allocation of resources and better play the role of government. For example, aiming at the obstacles that impede development of institutional mechanisms, the government should increase decentralization, put the tube combination, optimize service efforts, deepen the reform of administrative approval system; according to the demographic dividend decline, rising labor costs, we should deepen the reform of education system, pay more attention to strengthen education and improve the quality of human capital, and actively explore innovative talent training and development the mechanism, high-quality personnel; for structural imbalances, China's financial market insufficiency, we should promote the reform of the financial system; in view of the current economic downturn, the slowdown in revenue, fiscal reform external environment grim situation, we should continue to deepen the reform of the taxation system, establish powers and expenditure responsibilities to adapt the system to moderate strengthening of the central powers and expenditure responsibilities.