Supply-Side Reform: China reduces overcapacity to ensure stable economic growth

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Despite the trading tensions, China remains committed to a strong and stable economy. This includes strengthening the supply-side structural reform. The National Development and Reform Commission says the country has reached more than half of its annual objective goals to reduce coal and steel production capacity. CGTN's Zhao Yunfei reports.

Fixing China's supply and demand relationship, and boosting production efficiency starts with two of the nation's oldest products.

In the first seven months of 2018, China reduced coal production capacity by 80 million tons and steel by 24.7 million. Meanwhile, new-tech industries continue to take off. Production of new energy cars and industrial robots has grown by 68.6 percent and 21 percent respectively.

ZHAO CHENXIN SPOKESPERSON, NATIONAL DEVELOPMENT AND REFORM COMMISSION "Practice has proven that supply-side structural reform aligns well with the economic development of China at its current stage. It can effectively solve many practical issues. It has ensured economic stability, and is the fundamental measure to achieve high-quality development."

The National Development and Reform Commission has also worked on removing barriers to help enterprises thrive. Some non-taxed burdens have been addressed.

ZHANG MANYING DEPARTMENT OF PRICE SUPERVISION NATIONAL DEVELOPMENT AND REFORM COMMISSION "We will further clean up and standardize business service charges. We aim to reduce the burden of enterprises by more than 150 billion yuan. Now that measures involving more than 120 billion yuan have been carried out; that is 80% of the goal."

ZHAO YUNFEI BEIJING "China says supply-side structural reform is a strategy to ensure that the economy remains stable in the second half of the year, a measure to avoid financial risks amid international trade policies. Zhao Yunfei, CGTN, Beijing."