Supply-side structural reform is a major strategy in developing China’s economy, according to an article by State Councilor Yang Jing.

Republished by Xinhua Wenzhai in its first issue of 2017, the article was originally in Administration Reform, stressing the significance of implementing such a strategy.

In recent years, the central government has carried out a series of policies to boost the world’s second-largest economy amid downward pressures.

Supply-side structural reform, a major theoretical innovation in China’s socialist market economy, is a powerful driving force to upgrade economic structure and a key method to cope with the complex development of world economy, according to Yang.

The reform focuses on addressing overcapacity, reducing inventory, deleveraging, lowering costs, and bolstering areas of weakness.

Efforts will be made to further enhance reforms in economic and scientific sectors, State-owned enterprises, real economy, and fiscal and financial systems, according to the state councilor.

He also emphasized in the article efforts to better handle the relationship between government and market, supply and demand, present and future, central and local governments, and domestic and international issues.