China to deepen supply-side structural reforms in 2017

BEIJING - China will continue to press ahead with supply-side structural reform in 2017, aiming for tangible results in key reform tasks, said a statement issued Friday after the Central Economic Work Conference.

China expects substantial progress in five key areas next year: cutting overcapacity, destocking, de-leveraging, lowering costs and improving weak links, according to the statement.

Efforts should continue in reduction of steel, iron and coal capacity next year, with focus on "zombie enterprises." Mergers and reorganizations will be encouraged.

Businesses with overcapacity that have halted production should be prevented from starting again, and industrial overcapacity reduction should be achieved through market and law-based means, said the statement.

Destocking of property inventories should be in line with specific local conditions, with priorities to be given to housing inventories in third and fourth-tier cities.

Debt-for-equity swaps are encouraged through market and law-based means to lower corporate leverage, it said.

The focus of supply-side structural reform should be increasing efficient supply, reducing inefficient supply, improving supply quality, and enhancing compatibility of supply with demand.

Efforts need to be made on reducing tax, fees and other costs for companies and streamlining approval procedures, it said.

Supply-side reform in agriculture should be pushed forward, with focus on green and high-quality products, according to the statement.

Efforts should also be made on standard production, brand building and quality supervision of agricultural products as well as environmental protection, and more channels are needed to increase farmers' incomes.

The three-day meeting saw Chinese leaders and officials sketch out economic policies and priorities for the next year.