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Business / Economy

Ministries specify measures for supply-side reform in 2016

(Xinhua) Updated: 2015-12-29 18:23

The property market took a downturn in 2014 due to weak demand and a supply glut. This cooling continued into 2015, with sales and prices falling, and investment slowing.

To combat market weakness and the broader economic slowdown, the benchmark interest rates have been cut five times and home purchase restrictions eased to encourage loans and revive sales.

Now the urbanization drive has been identified as a solution to the inventory.

From next year, China will roll out policy to grant 100 million migrant workers urban resident status, according to Xu Shaoshi, head of the National Development and Reform Commission.

Nearly 55 percent of the population live in cities but less than 40 percent hold a "hukou" (official residence status) for the places where they live and work.

Industry observers expect this move to drive home sales and consumption.

China also planned to renovate six million run-down urban houses in 2016, the ministry said.

Dissolving overcapacity, nurturing high-tech sectors

The Ministry of Industry and Information Technology (MIIT) said it will focus on upgrading traditional industries, cut excessive capacity and fostering high-tech manufacturing in 2016.

The MIIT will work out programs to address overcapacity and reduce inventory and costs for major sectors, such as machine manufacturing,automobile production and textiles.

A substantial proportion of production capacity of iron and steel, electrolytic aluminum, cement and plate glass was closed this year.

In addition, emerging and high-tech industries, such as intelligent manufacturing, will see increased support and the integration of industries and the Internet, or Industry 4.0, will be a major task.

Agricultural modernization

China will also implement supply-side reform in agriculture to speed up modernization.

A statement released after the Central Rural Work Conference said China will ensure abundant and quality farm produce can satisfy market demand.

China will step up grain processing to cut stock; promote large-scale production, curb overuse of pesticides and fertilizers and introduce supportive services and networks to slash costs to overcome the current weaknesses, the statement said.

Minister of Agriculture Han Changfu said that in 2016. the ministry will deepen rural reform on land use right, as well as improve farming technology and the mechanization of farm work.

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