Supply-Side Structural Reform, Digital Economy and Corporate Default Risk

In recent years, a lot of corporate defaults have had an impact on the capital market. How to prevent corporate default risks has become an important topic of concern for the academic community, enterprises and the government. We took China’s A-share listed companies from 2012 to 2018 as a sample, and used the double difference method to analyze the impact of supply-side structural reforms on corporate default risks. We found that supply-side structural reforms have reduced the risk of corporate default, and the inhibitory effect has gradually increased. In the relationship between supply-side structural reforms and corporate default risks, corporate financing capabilities have played an intermediary role. Supply-side structural reforms can improve the company’s endogenous financing capabilities, thereby reducing the risk of corporate default. However, we also found that the mediating effect of a company’s exogenous financing capability is not significant. At the same time, the regression results show that the digital economy can play a regulatory role. It can not only actively regulate the relationship between supply-side structural reforms and corporate default risks, but also mediate the mediating effect of corporate endogenous financing capabilities. The results of this article provide some evidence for the synergy between supply-side structural reforms and the digital economy.

Setting the Structural Reform of Supply-Side as the Focus and Shifting the Economic Development Model

To focus on SRSS during the 13th Five-Year Plan period(2016-2020) is a necessary response to the changes of the international economic environment and to China's goal of achieving the new normal in economic development. The main reason why the focus shifts from changing EDM to reforming the supply-side structure lies in the fact that structural reform boosts the transformation of EDM, and only by accomplishing the former will the latter be realized. Today SRSS is faced with challenges like different ideologies, insufficient conditions and backward regulations. It should be led by the Five Major Development Concepts proposed by President Xi Jinping, "Innovation, coordination, greenness, openness and sharing," and the "supply-side" and "demand-side" must be simultaneously propelled.

National Planning,Investment & Structural Reform

Along with the further development of its economic structural reform, China’s planning, investment structure reform has made significant headway. A reporter interviewed Gui Shiyong, vice minister of the State Planning Commission on the current situation and orientation of the nation’s planning and investment structural reform.

Properly Understanding Supply–side Structural Reform in the Cultural Sector

The proposal of supply–side structural reform in the cultural sector is based on theoretical inspiration from the economic sector and actual issues in the cultural sector. A proper understanding of the proposal is crucial to the implementation of the reform which should be based on the backgrounds of macroscopic reform and cultural development of the country as well as the need for theoretical innovation. The reform should be carried out with a clear understanding of China's current conditions, a clarification of the reform thinking, the similarities and differences of supply–side structural reforms between the cultural and the economic sectors, as well as an analysis of issues related to the "supply–side" and "structure" in the cultural sector. Concerted efforts from the government through guidance, and market entities through operation should be made to apply appropriately to the reform principle of "unity of doubles effects." Innovations, especially those in technology and institutions, should be promoted as a new momentum to drive cultural development. Concerted efforts from the government and enterprises should underpin optimal supply and a mechanism for competition should be established to ensure effective supply in the cultural sector. In the meantime, the upgrading of demand should be used as a new guidance for effective supply and investment should be oriented to supplement the need for public cultural services. Attention should be paid to a satisfaction–oriented approach to fill the gaps in cultural consumption. For the cultural industry and undertakings, it is now the prime time which brings along great opportunities for development and challenges for reform. From now on the cultural sector should seek its development from transformation and upgrading. Supported by the central government through policy incentives and driven by technological innovations and the capital markets, the cultural industry will maintain stable growth for a relatively long period. In the implementation of supply–side structural reform in a well–organized and all–round way, governments, markets, enterprises, and the industry should each perform their functions and make concerted efforts for innovation to jointly promote the sound development and sustainable growth of the cultural sector.

THE WAY FOR STATE FOREIGN TRADE ENTERPRISES TO ADOPT STRUCTURAL REFORM

The Sichuan Provincial ChangjiangEnterprise Company, the former ofSichuan Provincial ChangjiangEnterprise (Group) Holdings Co.(SPCEGHC), is a comprehensive foreigntrade enterprise under the direct leadershipof the provincial government, mainly engagedin various kinds of foreign trade businessand as an agent for clients, involving deliveryof goods to foreign countries, the exchangeof technology, and the repair and leasing ofdomestic equipment. It was restructured tobecome an enterprise group in 1988, a"window" corporation on the province.

Efficiency evaluation of industrial supply-side structural reform in Guizhou

In the era of the digital economy, great changes have taken place in the production and trading of enterprises. The emergence of digital technology has brought new impetus to optimize the layout of industrial structures and transform the old and new kinetic energy. Combined with the 14th Five-Year Plan and the requirements of domestic and international dual-cycle development, we construct an evaluation index system for the efficiency of industrial supply-side structural reform from the five dimensions of benefit improvement, innovation-driven, structural optimization, ECO development, and people’s liveli-hood benefit. Based on the data of Guizhou and Sichuan province from 2010 to 2019, the efficiency of industrial supply-side structural reform in Guizhou from the horizontal and vertical perspectives is evaluated by using the entropy weight TOPSISI model, and policy suggestions for industrial development in Guizhou are put forward. Results show that:(1) the level of industrial supply-side structural reform in Guizhou was on the rise since 2015, but the development rate had slowed in the past two years, and the gap was obvious with Sichuan;(2) there is a problem of insufficient development imbalance in Guizhou, which is lagging in four aspects, including benefit improvement, innovation-driven, ECO development, and people’s livelihood benefit.

HUBEI STEPS UP SUPPLY-SIDE STRUCTURAL REFORM

Spicy crayfish has many diehard fans In Beijing.People wait in line for more than two hours or more at Huda Restaurant,renowned for its spicy crayfish.But do you know where all those crayfish come from?Huang Jianxiong,Secretary of the Communist Party of China(CPC)Qianjiang City Committee,told Beijing Review at a recent seminar in

Optimization Analysis of Rural Finance Based on Supply-Side Structural Reform

As the country has been placing greater emphasis on agricultural development,rural finance based on supply-side structural reform has achieved tremendous growth.However,investigations have found that the rural financial market still has problems in its service modes,organizational systems,product innovation,and risk evaluation,thus requiring urgent attention.Therefore,this study analyzes and expounds on these problems from the aforementioned four aspects and proposes the following solutions:encourage the creation of agricultural service institutions,establish and improve the rural financial organization system,vigorously develop new rustic financial products,and strengthen the risk supervision and management of financial markets.Only in this way can the agricultural supply-side structural reform and the innovative development of rural finance be realized.

Local Officials' Tactical Adjustment of Economic Growth Targets under China's Coordinated Regional Development Policy

This paper intends to examine Chinese local officials' behavior for economic growth after the central government's implementation of economic restructuring policy.Theoretically,this paper has demonstrated that when the central government credibly shifts its priority from overall national growth to regional economic restructuring,it will adopt an economic policy in favor of less developed region and local government officials will tactically adjust growth targets accordingly;when the restructuring policy has reached a wide enough coverage of benefit,officials of developed region will relatively lower growth targets for their respective jurisdictions.Empirically,this paper employs the growth targets laid out in the provincial Government Work Reports between 2001 and 2012 and the growth targets set in the five-year plans for the period between 1996 and 2015,and has discovered that changes of inter-provincial gaps are dominated by growth targets;after the central government has launched the program of regional economic restructuring on a full scale,developed provinces start to lower growth targets set for their respective jurisdictions.This paper's discoveries are robust and provide an explanation to the new tendency of China's economic growth in recent years,i.e.,economic growth of eastern region slows down,interprovincial gaps narrow and the central government has adopted the policy of coordinated regional development in favor of inland regions.

Evolution process,development goal and realization path of China’s agricultural green development

The agricultural green development process is sorted out from the historical perspective,combined with the“No.1 Central Documents”issued by the central government over the years and the relevant policy documents.Three stages are concluded,including embryonic stage,development stage,strategic promotion and promotion stage.Agricultural green development has three major goals,including providing high-quality agricultural products,efficient utilization of agricultural resources,protection and construction of beautiful countryside.The effective paths for achieving the above goals are agricultural supply-side structural reform,agricultural modernization and rural revitalization.The green development of agriculture is the intersection of the three to alleviate resource environmental pressure and change agricultural production mode.

China's Solution and Experience in the Comprehensive Implementation of Supply-Side Structural Reform

Comprehensively implementing supply-side structuralreform isa major adjustment of ideas and focus of China's economic development,made by the Communist Party of China(CPC)Central Committee on the basis of a comprehensive analysis of the world's long-term economic cycle and the new normal of China's economic development.As a major innovation to adapt to and lead the new normal of economic development,it has become a strategic deployment that concerns the overall long-term development of China's economy and society.Before the 19th CPC National Congress,the main tasks of supply-side structural reform were cutting overcapacity,destocking,deleveraging,reducing corporate costs and shoring up weak links.After the 19th CPC National Congress,while continuing to do the tasks,the CPC Central Committee stuck to the main direction of improving the quality of the supply system,enriching the connotation of deepening supply-side structural reform.Since 2016,China's supply-side structural reform has achieved remarkable results,and has been widely recognized and positively evaluated both internationally and domestically.The reform provides not only a solidfoundationandvaluable experience for China's subsequent reforms,but also a useful reference fordeveloping countries.

Logic and Path of Combining.Domestic Demand Expansion with Deepening of Supply-Side'Structural Reform

The fifth plenary session of the 19th Central Committee of the Communist Party of China(CPC)puts forward the organic combination of the implementation of the domestic demand expansion strategy with the deepening of supply-side structural reform,and scientifically reveals the internal logic of this organic combination and the realization paths,which is of great significance to the implementation of the new development concept and the constructionof a newdevelopment pattern.First,this paper provides a theoretical explanation for the organic combination of the domestic demand expansion strategy with the supplyside structural reform by analyzing why the traditional policies for expanding domestic demand are ineffective in the new development stage of China.Second,this paper elaborates the internal logic of this organic combination from two aspects.(1)The base point of the domestic demandexpansion strategy must be placed under the main line of the supply-side structural reform.(2)The two should be interconnected and are mutually reinforcing,so as to form a higher level of dynamic equilibrium in which the demand leads the supply and the supply creates the demand.Third,this paper analyzes the huge space for the organic combination of the domestic demand expansion strategy with the supply-side structural reform from the perspective of releasingconsumption potential and creating new demand,and on that basis proposes the realization paths of their organic combination.

Moving Faster to Modernize the Industrial System by Deepening Supply-Side Structural Reform

Modernizing the industrial system is an integral and strategic priority within the broader scope of modernizing the economic system.It demands a focus on boosting China's labor productivity and self-sufficiency rate of key technology products,with the aim to advance industrial upgrading and optimize the industrial structure.Hence,China must promote the strategy to expand domestic demand and accelerate the creation of a new development pattern from the supply side,coordinate economic development across regions,establish a national unified market,and create a more open industrial system.Specifically,China should increase funding in scientific research and experimental developmen,t,enhance theinnovation capacity of core technologies in key fields,optimize the digital economy structure,strengthen the modern service industry,raise the labor productivity of the service industry,maximize the market's decisive role and the government's function in resource allocation,and build a talent system tailored to the modern industrial system.

State-owned Enterprises' Outward Investment and the Structural Reform in China

Since China＇s accession to the WTO in 2001, China has been on a steep learning curve in terms of engaging in outward direct investment, and state-owned enterprises （SOEs） have played a predominant role in this drive. We argue that investment overseas by SOEs is a double-edged sword as far as its impact on domestic reform is concerned. Investing overseas offers opportunities to deepen structural reform in China, but such investment could also strengthen the monopoly position of some SOEs, which is inconsistent with the objective of domestic reform. Therefore, it is important for China to deepen domestic reform with respect to competition, ownership and regulations, to maximize the benefits from investing overseas＇. The present paper also discusses how building market-compatible institutions will resuh in increased innovation. This provides opportunities for Chinese firms to effectively catch up with the advanced technologies to remain competitive in overseas markets.

Deflation and Structural Reform in China

BytheendofAugust1999,theRetailPriceIndex(RPI)inChinahascontinuouslydeclinedfor23monthsandtheConsumerPriceindex(CPI)declinedfor18months.Itisobviousthatthepressureofdeflationisgettingmoreserious.In1998,theRPIdecreased2.6percentandtheCPIfor0.8percent.In...

Evaluation on the Process of Supply-Side Structural Reform:An Empirical Analysis Based on Economic Composite Index

Since 2015, the supply-side structural reform has promoted the transformation of China’s economy to high-quality development with “capacity reduction, de- stocking, deleveraging, cost reduction and improving underdeveloped areas” as the main line. This paper constructs the supply-side composite index and the supply- side reform index to track the economic supply-side status and supply-side reform process at the national level and in 31 provinces (municipalities), and analyzes the relationship between supply-side structure and economic growth by combining the SOLOW model. Based on that, this paper proposes that the reform of “optimizing stock allocation” to achieve “capacity reduction, de-stocking, deleveraging, and cost reduction” has achieved remarkable results, and follow-up focus should be put on promoting the reform of “expanding quality increment” to “improve underdeveloped areas”, so that innovation-driven high-quality development can be truly realized.

Grasp Three Basic Features of Rare Earth Industry, Propel Supply-side Structural Reform

On December 26,China Economic Information Agency of Xinhua News Agency and Baotou Rare Earth Product Exchange jointly released China Rare Earth Price Index(CREPI).This index is China’s first rare earth price index supported by online trading data.Jia Yinsong,

The Connotation and Implementation of Demand-Side Management:From the Perspective of“Macro-Policy Trinity”

As an important strategic direction of China's 14th Five-Year Plan,strengthening demand-side management aims to build an effective system to boost domestic demand,establish a complete demand system,and develop a robust domestic market,thereby promoting the realization of the growth goals by 2035 and the second centenary goal by the mid-21st century.Different from traditional aggregate demand management,demandside management introduces a host of new attributes pertaining to its regulatory scope,regulatory goal,regulatory strategy,regulatorytarget,andregulatoryinstrument.Demand-side management does not seek to replace aggregate demand management;rather,both assume pivotal roles in macrocontrol and their coordination are of utmost importance.In real scenarios,demandside management should synergize with supply-side structural reform,which is helpful to foster a new development pattern with domestic circulation as the mainstay and domestic and international circulations reinforcing each other.To effectively implement demand-side management,it is imperative not to replicate the approach used in aggregateedemand management.Only by further innovating and improving the macro-control system with Chinese characteristics and coordinating the stability policy,growth policy and structural policy can the demand-side management be truly implemented under the new framework of“Macro-policy Trinity.”

Completing China＇s Interest Rate Liberalization

China＇s recent removal of the last ceiling restriction on deposit rates in October 2015 is a milestone in interest rate liberalization, but not the end of it. International experience suggests that, without structural and quantitative reforms, simply freeing interest rates can result in major financial stress. Before China＇s central bank can completely relinquish implicit or explicit guidance for commercial banks interest rate determination, it needs to accomplish two tasks： improvement of commercial banks＇ pricing capability as well as the monetary policy transmission mechanism. Both tasks require significant reform measures to be initiated, such as enforcing market discipline, forming a new monetary policy framework, developing money and capital markets, abandoning quantitative restrictions on credit and reforming the financial regulatory system.

Chinese Economy under the New"Dual Circulation"Strategy:Challenges and Opportunities-A Summary of the Annual SUFE Macroeconomic Report(2020-2021)

Entering year 2020,the Chinese economy was struck by the COVID-19 outbreak.The unprecedented pandemic,entangled with the already elevated complexities in the nation's internal environment and external surroundings,aggravated its economic outlook.Internal factors including severe education mismatch in China's labor force,its vanishing demographic dividend,the declined purchasing power of its middle-income groups,risen leverage ratio of households and enterprises,and soared local government debt reinforced to weaken China's domestic demand.External factors,especially uncertainty in the China-US relation in the face of the re-shaping global value chain,dragged world economic recovery and thus China's exports and imports.This summary report highlights some major challenges and opportunities faced by the nation under its new development strategy that stresses internal circulation of domestic economy aided by its interaction with the globe.Our analyses based on IAR-CMM model provide a unified framework for addressing China's short-,medium-,and long-term issues in an internally coherent manner.Looking into year 2021,our benchmark projection reports an 8.4%annual real GDP growth rate.Alternative scenario analyses and policy simulations are conducted to assess the impacts of potential downside risks and the corresponding policy options for ensuring implicit targets.Through the lens of these analyses,we conclude that a refocus on effective management of internal demand,while deepening structural reforms on supply side and advancing orderly opening up,can help smooth the internal and external circulations of the Chinese economy to achieve high-quality development.