Let market play bigger role in supply side reform: expert

The government should further scale back leaving more room for market to play its role, experts said on a parallel discussion on supply-side reform at the economic summit on Saturday.

"Massive stimulus measures are no longer effective to drive growth," said Cai Fang, deputy director of the Chinese Academy of Social Science, "there's no cycling unemployment problem in China, and I'm not expecting that it would occur during the 13th five-year plan period - we should rather turn to seek for solutions to drive growth, which is how to deal with the supply side that could hardly meet the demand."

Talking about dealing with overcapacity in heavy industries, such as steel and cement, Cai suggested that the government should play a role in creating a healthy environment and let the market decide who should cut production and leave the market.

In Cai's words, more space should be given to the market, and this is in itself an effective reform.

Li Yang, head of the National Institution for Finance and Development, said making changes to the supply side means that we should turn away from relying on the old driving forces, but rather excite the potential of the market and make good use of labor, land, capital and technology.