Qiushi Magazine Commentator: Resolving the Contradiction of Strong Supply and Weak Demand Through Reform

Qiushi Journal commentator article: The contradiction of strong supply and weak demand is a prominent issue currently facing China's economic operation. To resolve the contradiction of strong supply and weak demand, macro policies must be effective in stabilizing the overall economy, while reforms must also be intensified to enhance the momentum and vitality of economic development. To resolve the contradiction of strong supply and weak demand through reform efforts, it is necessary to further improve the quality and efficiency of the supply system. The contradiction of strong supply and weak demand involves both the problem of aggregate imbalance and the problem of mismatch between supply and demand structures. As the living standards of Chinese residents improve and their demand levels rise, in some areas the products and services supplied cannot keep pace with consumption upgrading, and the problems of excess mid- and low-end supply and shortage of high-quality supply coexist. It is necessary to accelerate the building of a modern industrial system, enhance the adaptability of the supply system to domestic demand, and expand high-quality supply to meet the consumption needs of different groups. Traditional industries are an important component of the national economy and play an irreplaceable role in safeguarding people's livelihood and promoting employment. It is necessary to improve the effective mechanisms for supporting and guiding traditional industries in carrying out technological transformation and promote the digital and intelligent transformation of manufacturing. We should improve policies and governance systems for promoting the development of strategic industries and establish mechanisms for increasing investment in future industries. We should deepen regulatory reform of the service sector, improve the supporting policy system, and promote high-quality and efficient development of the service sector. We should improve the market clearing mechanism, rely on market-based and law-based means to promote vertical integration and horizontal mergers and acquisitions among enterprises, and guide the healthy and orderly development of industries.