One, three cuts, one reduction and one supplement are:

1. Cut overcapacity

It mainly talks about steel, coal and other industries. Those who should go bankrupt will go bankrupt. Turn off. Arrangements will be made for job transfer, retraining and re-employment for unemployed enterprise employees. Currently, these zombie companies are relying on bank loans to survive.

2. Destocking

It mainly talks about the vacant buildings in real estate development, which need to be sold and the inventory removed. It is said that local governments have task indicators for destocking.

3. Deleveraging

It means reducing debt. The government, enterprises, and individuals can all have debt. If the government borrows money to carry out certain projects, it is increasing leverage.

4. Cost reduction

It is to reduce the overall tax burden level. The tax-to-VAT reform that will be implemented on May 1st is a specific measure.

5. Make up for weaknesses

Such as poverty alleviation, infrastructure construction, etc.

2. The core issue of "three cuts, one reduction and one supplement" is the so-called deleveraging, that is, reducing debt. Large enterprises that continue to suffer losses and are insolvent will continue to borrow money from banks. They will not get better because of "debt-for-equity swaps." The hole will only get bigger and bigger, and the bank's own risks will become bigger and bigger. Personal liabilities mainly belong to those who pay for housing.

Extended information:

1. The 13th meeting of the Central Financial and Economic Leading Group pointed out that the main direction of supply-side structural reform is to reduce ineffective supply, expand effective supply, and improve the supply structure's impact on the economy. Regarding the adaptability of the demand structure, the current focus is on promoting the five major tasks of "three reductions, one reduction and one supplement".

2. What are the measures of “three reductions, one reduction and one supplement”? The “three reductions” are “cutting overcapacity, destocking, and deleveraging. Cutting overcapacity: refers to solving the oversupply of products and causing product malignancy. In the face of unfavorable competition, we seek ways to transform and upgrade production equipment and products. Deleveraging: The key is to be both proactive and prudent. Specifically, it means improving the debt structure while improving production efficiency and promoting economic growth. /p>

3. The promotion of "three reductions, one reduction and one supplement" should still focus on market mechanisms and means, and the key point should be to give full play to the market's forcing mechanism. "Three reductions, one reduction and one supplement" are all matters for market entities. Enterprises are the protagonists, and enterprises must have the driving force or sufficient external pressure to exert the force of the market.

4. The government must play a role in the "three cuts, one reduction and one supplement". Its main role is to fully unleash the charm of the market mechanism and remove all obstacles that hinder the effective functioning of the market mechanism. ", the government's main responsibility is to protect the market and the market mechanism.

Reference: Baidu Encyclopedia-Three eliminations, one reduction and one supplementation