China is steering its economy towards sustainable growth by balancing two crucial strategies: expanding domestic demand and deepening supply-side structural reforms. This dual approach aims to address diverse economic challenges and foster a resilient marketplace.
Understanding Demand Expansion and Supply-side Reform
Historically, expanding domestic demand has been pivotal in driving consumption and investment, laying the foundation for economic stability. Simultaneously, supply-side structural reforms focus on enhancing productivity, reducing inefficiencies, and securing supply chains, especially in high-end sectors.
Evolution of Strategic Concepts
The current strategy prioritizes recovering and expanding consumption while emphasizing the importance of investment. The ultimate objective is to establish a comprehensive domestic demand system that can sustain long-term growth.
Changes in Supply-Demand Relations
China's economy faces the dual challenge of overcapacity in low-end sectors and insufficient supply in high-end areas. Addressing these issues requires a nuanced understanding of the evolving supply-demand dynamics to effectively target and resolve the primary contradictions.
Balancing Macroeconomic Governance
Expanding domestic demand and supply-side reforms are not opposing forces but complementary strategies. By harmonizing these efforts, China aims to upgrade its supply capabilities from the demand side and stimulate new demand from the supply side, achieving a dynamic equilibrium that supports sustained economic growth.
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Coordinating demand expansion and supply-side structural reform
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