Talk about your understanding of deepening supply-side structural reform

Deepening supply-side structural reform can eliminate backward production capacity.

deepen supply-side structural reform, improve the efficiency of resource allocation, and improve the effectiveness of investment. Improper competition among local governments can easily lead to repeated construction and lead to overcapacity. When there is overcapacity, some local governments may "transfuse blood" to enterprises that should have been eliminated by the market through subsidies, so that the problem of overcapacity persists. Supply-side structural reform is helpful to straighten out the relationship between the government and the market, make the market play a decisive role in resource allocation, and then control overcapacity from the institutional mechanism level.

By deepening the reform of fiscal and taxation system and improving the evaluation mechanism of cadres, the government's intervention in enterprise investment activities will be reduced, and excessive competition and redundant construction among local governments will be avoided. By eliminating unnecessary financial subsidies, the survival of enterprises is decided by the market mechanism of survival of the fittest.

a brief description of the essence of supply-side structural reform

1. Supply mode

Supply-side reform is essentially to reform the supply mode of government public policies, that is, to reform the way of production, output, implementation, revision and adjustment of public policies, to better coordinate with market orientation and give full play to the decisive role of the market in allocating resources. In the final analysis, supply-side reform is to regulate the power of the government according to the requirements of market orientation.

2. Supply structure

Supply-side reform is a government reform that is market-oriented and based on the supply constraints required by the market. Judging from the phased tasks of supply-side reform, whether it is to flatten the market access threshold, truly realize the equalization of national treatment, reduce the degree of monopoly, relax administrative control, reduce financing costs, reduce taxes to benefit the people, or reduce the supply restrictions on production factors such as land, labor, technology, capital and management, etc., are actually the contents of government reform.