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Business / Economy

Govt sets eliminating outdated capacity 'a priority'

By Zhang Yue (China Daily) Updated: 2016-01-28 07:30

Govt sets eliminating outdated capacity 'a priority'

A worker cuts steel bars on the production line of a mill in Lianyungang, Jiangsu province. [Photo/China Daily]

New ideas and concepts on sharpening supply side reform have been raised by Premier Li Keqiang at a symposium with economists and enterprise representatives.

The symposium sought views and suggestions from economists and business representatives on the draft of the Government Work Report as well as the country's 13th Five-Year Plan (2016-20), which was released in November.

The final version of the work report will be delivered at the annual session of the National People's Congress in March.

Monday's symposium stressed the importance of supply side reform, which is aimed at ending ineffective supplies, creating new types of supplies, transforming outdated capacity and releasing the potential of the demand side.

One government priority this year is to eliminate outdated capacity in the iron, steel and coal industries through market forces.

At the meeting, representatives commented positively on China's economic development last year. They also urged the government to adhere firmly to reform and opening-up, which has spurred the nation's rapid economic growth over the past three decades.

They also asked the government to further streamline administration and delegate power to lower-level authorities.

Cao Guowei, CEO of Sina.com, suggested that many people wanting to start their own businesses should focus on Internet financing.

He said that "real business opportunities" lie in innovation in traditional industries that use the Internet as a platform.

"Many people do not know that, for a country like China, rapid development of the Internet has already reached a bottleneck, and there are many cases of failed entrepreneurship," he said.

"Real opportunity lies in a good combination of traditional industry and good use of Internet platforms, such as the e-business mode of Taobao.com."

Cao said the rise of the Internet has made some figures extremely popular, leading to opportunities for profit. This had aroused the interest of Premier Li, who asked Cao to expound on this.

"I think he found this fresh and interesting," Cao said after the meeting.

It was the first time that Cao had taken part in a symposium attended by the premier for suggestions on the Government Work Report.

Li spoke highly of the participants' suggestions for China's economic development.

"The Chinese people have always been full of wisdom and innovative ideas. The important thing is that these ideas should not be restricted," he said.

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