Major progress has been made in supply-side reform in the first three quarters, according to the State Council’s third inspection of 2016.
The inspection report released data on specific improvement in coal and steel industries, real estate sector, industrial enterprises and renovation of shantytowns.
The achievements can be attributed to policies adopted by the State Council departments. For example, the National Development and Reform Commission established a joint meeting mechanism to promote better cooperation with local governments to cut excessive capacity in the coal and steel industries, encouraging local governments to launch action plans suitable to their own situations.
Major measures have been introduced to promote structural reform, especially on the supply-side, to streamline administrative approvals, provide efficient government services and further encourage mass entrepreneurship and innovation.
The Chinese government has streamlined registration procedures for private businesses, to fully release the benefits of the market and break institutional obstacles.
Thanks to these reforms, in the first three quarters, year-on-year growth of newly registered enterprises has reached 28.9 percent.
However, some uncertainties still exist amid stable progress made on supply-side reform. Cutting overcapacity and destocking inventories in the real estate market have been a hard nut to crack. A long-term solution is still needed to fundamentally avoid illegal mining activities and solve housing problems.