Supply-side reform calls for new system

Given China's current economic conditions, a large-scale stimulus to strengthen the demand side will not help mitigate the downward economic pressure; instead, it will exacerbate its overproduction and environmental degradation problems.

And since the problems China faces are not short term, cyclical or caused by external factors, the use of methods focused on demand management cannot eradicate them from the roots. The need, therefore, is to address the problems that are putting added medium-and long-term structural and internal pressures on its healthy and sustained economic development.

Like two sides of a coin, supply and demand constitute two parts of the theoretical base of economics. As two modern practices of supply-side economics, "Reaganomics and Thatcherism" (the economic policies of former US president Ronald Reagan and former British prime minister Margaret Thatcher) once realized success in economic reforms through tax cuts, privatization of state-owned enterprises and reduced government intervention in the market.