Promoting supply-side structural reform to create new advantages for Jiangsu's development

Promoting supply-side structural reform is a major strategic idea proposed by the Party Central Committee with Comrade Xi Jinping as the general secretary, focusing on the overall situation of my country's economic development. It is a major strategic deployment to adapt to and lead the new normal of economic development. After the Central Economic Work Conference last year, the Jiangsu Provincial Party Committee and the Provincial Government made arrangements for the implementation of the five major tasks of supply-side structural reform. Since the beginning of this year, the Provincial Party Committee and the Provincial Government have placed this work in an important position in economic work and carried out in-depth research and deployment. At present, the province has a high degree of unity in thought and understanding, and the work is being promoted in a strong and orderly manner.

Deeply study and understand General Secretary Xi Jinping’s important thoughts on supply-side structural reform

We must continue to use General Secretary Xi Jinping’s important thoughts on supply-side structural reform to arm our minds and guide our practice, to ensure that we take the right, steady and effective path.

First, accurately understand it in a comprehensive scientific system. Since November last year, General Secretary Xi Jinping has made profound expositions on supply-side structural reform on many occasions, and a complete scientific system has gradually been formed. Jiangsu Province has sorted out its own reality and further clarified the framework of ideas and work requirements, including fundamental purposes, main goals, basic paths, key tasks, scientific methods, etc., striving to fully and accurately understand the important ideas of the General Secretary.

Second, we should deepen our understanding by closely integrating with Jiangsu's development practices. After more than 30 years of development, Jiangsu's total supply and scale have reached a relatively high platform. On the basis of achieving the transformation from "agriculture to industry" and "from inside to outside", Jiangsu has placed innovation-driven development in a more prominent position in the overall situation, and has focused on promoting the third transformation of the economy from "big to strong". In recent years, Jiangsu's economy has continued to develop healthily, thanks to this to a large extent. However, the past supply and demand docking and supply and demand balance all had phased characteristics. Now the supply and demand relationship has and is undergoing profound changes. The problems of low quality and efficiency of Jiangsu's supply system are becoming increasingly prominent. The main contradiction in economic development is not cyclical but structural. Promoting supply-side structural reform is not only a key measure to resolve the current prominent contradictions, but also a major opportunity for Jiangsu's economy to be reborn.

Third, we have gained a profound understanding of the political economy of socialism with Chinese characteristics under the general framework of socialism with Chinese characteristics. From proposing the new normal of economic development to establishing new development concepts and then to supply-side structural reform, the Party Central Committee with Comrade Xi Jinping as General Secretary has creatively developed the political economy of socialism with Chinese characteristics, which has received high attention and wide recognition not only at home but also in the international community. On the basis of previous studies, the Jiangsu Provincial Party Committee combined the "Two Studies and One Action" special study and education, requiring the whole province to firmly grasp several major principles of the political economy of socialism with Chinese characteristics and effectively enhance the theoretical and behavioral awareness of promoting supply-side structural reform.

Resolutely implement the five major tasks of supply-side structural reform

"Removing" is to make room for effective supply, and we must do it proactively, resolutely, and thoroughly; "reducing" is to improve the competitiveness of enterprises, and we must be serious about it, work hard, and see real results; "filling" is to extend the shortcomings of the supply system, and we must "fill" in the weak, key, and critical areas.

Unwaveringly reduce overcapacity. Jiangsu Province has added the shipbuilding industry to the key industries for overcapacity reduction, based on the central government's clear steel, coal, cement, and flat glass. At the same time, it has been determined that a number of low-end and inefficient production capacities will be withdrawn from other traditional industries such as light industry, textiles, printing and dyeing, electroplating, and machinery. During the 13th Five-Year Plan period, Jiangsu will reduce crude steel production capacity by 17.5 million tons; withdraw coal production capacity by 8.36 million tons; withdraw cement production capacity by 6 million tons; withdraw flat glass production capacity by 8 million weight boxes before 2018; and the shipbuilding industry will eliminate 3.3 million deadweight tons this year on the basis of eliminating 6.7 million deadweight tons in the previous two years. An action plan for promoting international capacity and equipment manufacturing cooperation has been issued, and an industrial investment project database has been established. A comprehensive incentive policy has been formulated to support industries with overcapacity to accelerate the pace of mergers and reorganizations. Grasp the timing, rhythm, and intensity of clearing out "zombie enterprises".

Precisely implement policies to reduce inventory. In view of the regional characteristics of the real estate market, the overall idea of ​​Jiangsu Province's real estate destocking is: strengthen one responsibility, that is, strengthen the main responsibility of the city and county governments for destocking tasks; adhere to two principles, that is, adhere to the principles of classified guidance and city-specific policies; clarify three paths, that is, implement precise destocking, linkage destocking and transformation destocking; highlight four combinations, that is, combine destocking with promoting new urbanization and promoting the urbanization of permanent residents, with improving the housing security system, with promoting the balance of supply and demand in the real estate market, and with accelerating the transformation and upgrading of the real estate industry. It is planned that by the end of this year, the inventory turnover cycle of residential commodity housing in the province will be controlled within 16 months, and by the end of 2018, the inventory turnover cycle of commodity housing in the province will be controlled within 14 months.

Deleverage in a prudent and orderly manner. In view of the different characteristics of government and corporate leverage, we will adhere to classified and prudent operations, reasonably grasp the rhythm and speed of deleveraging, orderly reduce the leverage ratio, and prevent and resolve various debt risks. In terms of government debt, the scale of Jiangsu's debt is generally adapted to the level of economic development and debt repayment capacity, and a number of high-quality state-owned assets have also been formed. Jiangsu will continue to strictly control the scale of new government debt, arrange debt repayment funds in a planned manner, and ensure that there is no government debt crisis. In terms of corporate debt, we will seize the opportunity of capital market reform, give play to the financing function of regional equity trading markets, and vigorously support enterprises to increase the proportion of direct financing, especially equity financing. At the same time, we will focus on preventing and controlling financial debt risks, steadily promote "breaking the circle and unblocking the chain", actively explore the establishment of a green channel for the disposal of non-performing assets, and gradually mitigate potential risks.

Take multiple measures to reduce costs. Issue opinions on reducing costs, propose 32 measures to reduce costs at the provincial level, cancel all provincial administrative fees, and implement provincial "zero fees" for enterprises, which is expected to directly reduce the burden on enterprises by 100 billion yuan this year. At the same time, all localities are required to make every effort to come up with tangible "dry goods" for social supervision, enterprise evaluation, and market testing. In the first quarter of this year, the cost of every 100 yuan of main business income of industrial enterprises above designated size in the province decreased by 0.6 yuan year-on-year. Deepen the reform of the administrative approval system, cancel and delegate some administrative approval items with higher gold content, and strive to reduce the hidden costs of enterprises.

Grasp the key to make up for shortcomings. Focus on key areas such as infrastructure, public services, ecological environment, and modern agriculture, adopt a project-based approach, and launch five special projects to make up for shortcomings, with a planned investment of 2.1 trillion yuan in five years. This year, we will focus on implementing 200 major projects to make up for shortcomings, ensuring that an annual investment of 400 billion yuan is completed. Focus on giving play to the role of social capital, further relax market restrictions, continue to promote and continuously improve new investment and financing models such as PPP, and launch a number of cooperation projects with good development prospects and strong profit expectations.

In the work, we pay attention to "five combinations": first, we closely combine the spirit of the Central Committee with the actual situation in Jiangsu, implement the clear tasks put forward by the Central Committee without compromise; and creatively implement the guiding opinions of the Central Committee in combination with the actual situation. Second, we combine the decisive role of the market with the better role of the government, make more use of market-oriented and legal means, and strengthen organizational guidance and policy support. Third, we combine supply-side reform with demand-side management, and pay attention to moderately expanding total demand while focusing on the implementation of various tasks of supply-side reform. Fourth, we combine promoting reform with stabilizing growth and preventing risks, focusing on solving problems with reform ideas and methods, grasping the rhythm and intensity of reform, and balancing the relationship between all aspects. Fifth, we combine solving current prominent problems with improving systems and mechanisms, focusing on the implementation of key tasks, and striving to establish systems and mechanisms that are beneficial to supply-side structural reform.

Taking the construction of "one center" and "one base" as an important means to promote supply-side structural reform

The planning and construction of an industrial science and technology innovation center with global influence and an advanced manufacturing base with international competitiveness focuses on the establishment of a modern industrial system, with the core being innovation-driven development, and the goal being to improve total factor productivity and increase the supply of medium and high-end products. It is the due meaning and major measure for Jiangsu to promote supply-side structural reform. In terms of building the "one center", it is planned that after 5 years of efforts, the framework system of the industrial science and technology innovation center will be basically formed, and the main innovation indicators will reach the medium level of innovative countries; after 10 years of struggle, the core functions of the industrial science and technology innovation center area will be formed, and it will become an important node in the global industrial technology innovation network, and some innovation indicators will enter the advanced ranks of innovative countries; by around 2035, an industrial science and technology innovation center with global influence will be fully built. In terms of building the "one base", by the end of the "13th Five-Year Plan", new industrialization will be basically realized, the construction of a strong manufacturing province will make important progress, and several key industries and important fields will reach the world's advanced level; by 2025, an advanced manufacturing system will be formed with innovation breakthroughs in sync with the international level, intelligent manufacturing in line with international standards, and product quality in line with international standards, and total factor productivity will be equivalent to the international advanced level, entering the advanced ranks of global manufacturing.

In building "one center" and "one base", the current focus is on three aspects: First, strengthen the main role of enterprises. Guide enterprises to root manufacturing in R&D, especially to optimize, strengthen and activate enterprise R&D institutions, and improve innovation efficiency. In order to guide and support enterprises to participate in the construction of "one center" and "one base", Jiangsu has launched two major plans for enterprise manufacturing equipment upgrading and Internet-based upgrading. Second, vigorously gather innovative resources. Based on the whole country and looking at the world, we will strive to introduce a number of world-renowned research institutions and regional R&D centers of multinational companies, attract a number of internationally renowned universities to cooperate in running schools, and introduce a number of experienced and strong domestic and foreign equity investment institutions to enhance the supply capacity of high-end innovation factors. Third, promote the integration of industrial chain, innovation chain and capital chain. Integrate development resources such as scientific research, industry, and capital, focus on deploying innovation chains around the parts of the industrial chain that affect core competitiveness, and follow up on capital chains around the fields where key technologies are formed in the innovation chain.

More than half of Jiangsu's public budget revenue, about 80% of its industrial added value, total imports and exports, and actual use of foreign capital come from development zones. The provincial party committee and government guide development zones of all levels and types across the province to focus on promoting the "three internationalizations" of enterprises, cities, and talents, and to serve as the main battlefield for the transformation and upgrading of the open economy, the ballast stone for stabilizing economic growth, and the demonstration zone for promoting supply-side structural reform.

Since the beginning of this year, Jiangsu has achieved a good start in economic development, structural optimization, and improvement of people's livelihood. In the first quarter, the province's GDP reached 1,650.9 billion yuan, an increase of 8.3%; general public budget revenue increased by 12.1%; fixed asset investment increased by 9.3%, of which technical transformation investment increased by 28.1%; and per capita disposable income of all residents increased by 8.5% year-on-year. This confirms from one aspect that the central government's decision-making and deployment on supply-side structural reform is completely correct. The Jiangsu Provincial Party Committee and the Provincial Government will conscientiously implement the spirit of General Secretary Xi Jinping's series of important speeches on supply-side structural reform, establish confidence in victory, unswervingly push this work forward, and strive to create new advantages for Jiangsu's development.