The Constraint Factors Of The Policy Change From Demand-side Management To Supply-side Reform

As China's economy has entered a new normal,the simple demand-side management policy has been unable to meet the objective needs of China's economic development.Supply-side reform policy is an inevitable choice for seeking new economic growth under the current situation in China.Compared with demand-side management policy,supply-side reform policy is more focused on long-term effects and is conducive to the sustained and healthy development of China' s economy.Since General Secretary Xi Jinping proposed the concept of supply-side reform for the first time in 2015,the five major tasks of supply-side reform--cutting overcapacity,reducing excess inventory,deleveraging,lowering costs,and strengthening areas of weakness--have achieved some results,but the reform still faces some problems.The process of supply-side reform is constrained.Therefore,based on summarizing the frameworks of policy change theory,this paper attempts to generalize and analyze the constraints of the process from demand-side management to supply-side reform in China,find out the deep problems that restrict the policy change process,and make policy recommendations to promote the development of supply-side reform.This paper thinks that environmental factors,institutional factors,policy constituent elements,and policy body factors play a binding role in the process of policy change from demand-side management to supply-side reform.Specifically,unfavorable social and economic environmental conditions have constrained the process of supply-side reform.The imperfections of rules and systems have brought an unfavorable institutional environment to supply-side reforms.Informal institutional factors such as value orientation and policy style restrict the process of supply-side reform.In addition to the above-mentioned external factors playing a constraining role to the policy change,the constituent elements of the policy itself such as policy issues,policy objectives,policy costs and policy tools,and policy body factors such as government and stakeholders,also play internal constraining roles.Based on the reality of supply-side reform,this paper believes that by changing ideas,perfecting system design,deepening administrative reform and improving innovation environment,the constraint factors of the policy change which from demand-side management to supply-side reform can be eliminated and the development of supply-side reform can be promoted.