"Supply-side structural reform" was proposed by China's policymakers in Nov. 2015 as the latest remedy for economic ills caused by breakneck growth. According to Hu, facing the international financial crisis and structural problems, supply-side structural reform could provide Guangdong with new economic engine to take lead in new normal.
Guangdong should make effort to develop a new economic system and model with emphasis of innovation, said Hu. Hence, it is necessary to conduct industrial upgrading and support emerging sectors. Besides, more top foreign enterprises and local private enterprises are encouraged to grow in the province.
In addition, Pearl River Delta (PRD) region and Eastern, Western and Northern Guangdong are supported to co-construct industries. A cross-regional industrial distribution and division will contribute to draw advanced productivity from PRD to less-developed areas of Guangdong for mutual development.
On the meeting, Zhu Xiaodan, Guangdong governor underlined several economic tasks to finish in the second half of 2016. Above all, to launch in-depth supply-side reform by means of reducing overcapacity and excessive inventory. Other tasks include expansion of investment, implementation of innovation-driven strategy and promotion of real economic structural adjustment, etc.