The reform has drawn keen attention from big businesses around the world. Many have noticed the development in this field.
In a broad sense, "fiscal and tax reform that realigns incentives in the economy, SOE reforms, hukou and labor market reforms, [and] interest rate liberalization to help the market allocate resources more efficiently -- these are all in some sense supply-side reforms," said the UBS in a research note.
"Under the current situation, it is impossible to expect a V-shaped economic recovery through short-term stimulation," said the authoritative figure, adding the national economy is likely to experience an L-shaped growth period.
"Keynesianism won't help much in addressing medium-and-long-term economic ills. The cure lies in structural reform," the authority said.
The unnamed authority urged burying the "zombies" and "let them rest in peace" to free up resources.
On the risks in cutting overcapacity and eliminating zombie enterprises, the authoritative figure proposed relying more on mergers and revamping instead of bankruptcy liquidation. Meanwhile, the figure urged caring for laid-off workers.
Labor-intensive iron and steel, cement, electrolytic aluminum and flat glass production are regarded to be among industries with excess capacity.
Reform to boost economy
Chinese economists are optimistic that supply-side structural reform will give the economy a boost.
According to the authoritative figure, the five major tasks surrounding the reform, namely reducing overcapacity, destocking, deleveraging, reducing costs and shoring up weak growth areas, will all boost China's development in the long term.
