Combined Strategy on Supply Side: Urbanization is the key progress

The 2015 Central Economic Work Conference has highlighted the reform on the supple side and come up with five tasks including: digesting overcapacity, de-stocking, and deleveraging, cost-reducing and filling short board. At present, the difficulties that China’s economy confronted was not simply deficient demand, but the mismatching between aggregate demand and supply. The demand structure was changing along with the improvement of the income level. However, the supply structure and productivity could not adjust and follow the alteration. The structural reform on the supply side was just around the corner. New types of urbanization and reform of urban systems were the important parts of the supple side and crucial thoughts to solve the current problems of China’s economy. As an economic backbone of a city, to a large degree, the development of industries can decide the development ceiling of cities and city groups.