A Study On The Reform Of Supply Side In China From The Perspective Of Marxism

Since the beginning of 1978,with the third Plenary Session of the 11 th CPC Central Committee meeting,China’s economy has maintained rapid growth,successfully entered the ranks of the moderately developed country.However,as the speed of economic growth converts from high to medium-high,industrial structure from low to high,the mode of production from extensive to intensive,China has entered a new norm.In the context of the new norm,a contradiction between supply and demand has appeared.Furthermore,the phenomenon of lacking population,land,funds,management,and technology has shown up.Therefore,At the 11 th meeting of the central finance and economy leading group on Nov 10,2015,President Xi Jinping stressed that China should strengthen structural reform of the supply front,which could also be called as ‘supply front reform’.Based on Marx’s political economy and the theory of socialism with Chinese characteristics,this paper studies the problem of supply front reform in China.The first section mainly elaborated on the concept of ‘supply’,’supply front reforms’,and the theoretical basis of China’s supply front reform,which equals to the supply theory in the Marx’s political economics theory.According to the general secretary Xi Jinping’s theory on supply front reform,the China’s supply front reform should under the guidance of Marxism.In addition,in the second part,we mainly introduce the background,main measure,and issue of the supply front reform.Firstly,we analysis that the imbalance of domestic supply structure and demand structure is caused by the change of China’s economic situation.And based on this background,we introduce the main contents of supply-front reforms:Excessive production capacity absorption,industrial optimization,reducing costs and reducing stock.After more than a year of reform,not only an appropriate China socialist supply theory has been proposed,which combined with the Neosupply Economics and the Marxist Political Economics,but also getting remarkable result on implement the main contents of supply-front reform.However,there are still some problems: the first one is the theory problem,there are some misunderstandings of China’s supply front reform;the second is that the difference of labor structure is obvious;the third one is the degree of marketization of land is low;fourthly,the capital circulation obstacles is obvious;the fifth is the unreasonable management system;the last one is the lack of technological innovation.In the third part,according to the reason we analysis above section,we offer some suggestions about the China’s supply-front reform.Theoretically,we need to distinguished the China’s supply front reform and Western supplierism.In the reform of labor force,the government could promote the rational allocation of educational resources in the cultural level;enhance the laborer’s social status,or strengthen local labor protection to prevent the manpower loss.In the reform of land,the government could use GDP as evaluation standards,increase agricultural land compensation measures.As for the reform of capital,the government could focus on the RMB internationalization or the increase of financial derivatives investment.In the reform of management,we give some suggestion on state-owned enterprise and family business management.Regarding the reform of science,we provide some opinion on how to improve the legal system to protect the intellectual property rights,how to allocate technological resource according to one’s measures,or how to increase the power of innovation.The supply-front structural reform is continuous practice in China since it has been proposed in November 2015.Currently,it is still in its infancy.However,the ‘13th Five-year’ plan established the status of the reform.State leader and experts have studied the economic feasibility of the supply front reform in theory and in practice it took the pace of exploration.This paper studies on the background and main content of China’s supply-front reforms aims at highlighting the Marx economics principle has great significance in our supply-front reforms.Furthermore,according to the existing problems,we give some suggestions.Hoping this paper could attract attention by academic to research further in this area.