China's Supply-Side Reform: The Rationale and Implications

Supply-side structural reform has been a catchphrase in China since 2015 in official media. While there is a lack of details, the government seems to have placed hope on formulating policies to address both short-term problems, such as production overcapacity, and long-term issues like cultivating growth engines for sustainable development. Although the importance of structural reforms has been stressed, formulating coherent and effective policies remains tricky. The outcome remains to be seen.