The reason for this is the following：
First of all, state-owned enterprises generally have overcapacity, especially industrial overcapacity, especially in the steel industry. Although they are all good steel, the sales volume has dropped seriously. Over the past decade or so, with the gradual development of real estate, many state-owned enterprises that should be transformed have made huge profits, leading to the transformation and industrialization of state-owned enterprises, which are concentrated in the secondary industry, while the tertiary industries such as service industry, Internet and logistics are hardly involved, just like a person investing, putting all his eggs in one basket, which leads to great risks. It can be said that the over-industrialization of state-owned enterprises is a serious problem and will turn into a crisis. The current supply-side reform is to adjust the business scope of state-owned enterprises in a timely manner and evolve in the direction of high technology, service industry and Internet. This is a war that we cannot afford to lose. State-owned enterprises should supply and integrate. At present, the competent departments at all levels have not taken any effective measures, which is also due to institutional mechanisms. Either because of inertia and sense of responsibility, no effective measures have been taken. The supply-side reform of state-owned enterprises is undoubtedly painful. For zombie enterprises, it is necessary to gradually dissolve bankruptcy and reorganization. For indebted enterprises, it is necessary to set up a strategic advisory Committee in time, and the leadership team will change if it changes. Special attention should be paid to let grassroots cadres, workers and middle-level cadres set up enterprise supervisory committees (to implement general elections) to supervise the implementation of enterprise strategies. At present, many state-owned enterprises and managers lose strict internal control, which leads to unsustainable bankruptcy of enterprises. Encourage state-owned enterprises with good performance to merge and reorganize state-owned enterprises with poor performance or even heavy debts. We should control this in time.
Secondly, most private enterprises tend to live in the service industry, mainly focusing on light industry, agency, luxury goods, Internet and other industries. While effectively integrating requirements, there are also scattered and chaotic problems. However, compared with state-owned enterprises, this is already a relatively small problem.
Thirdly, the government revenue reform, a large part of government revenue comes from taxes, and the profits paid by state-owned enterprises have been very small. Fiscal revenue is the basic nourishment for the operation of state machinery, and its supply is a problem that affects the overall situation. Is it a small government or a big government? This is the fundamental problem on the other side of supply, and it is also an important issue in the financial distribution between the central and local governments. In the future, local governments should have a greater say in business tax, consumption tax and even value-added tax, so as to transfer local enthusiasm, create a new pattern of enterprise development and end the irrational impulse of land finance.
Then, we should improve the financing environment. Capital is one aspect of supply. At present, banks still have not overcome the problem of lending to large enterprises and state-owned enterprises. Although the slogan of supporting small and micro enterprises has been shouted for several years, it is still insignificant to really implement it. How to improve this situation, we must also implement supply-side reform. The specific measures are to vigorously develop private banks and standardize and support internet finance.
Thirdly, real estate destocking is also a problem. At present, there is a serious surplus of real estate inventory, which should not only be promoted by moderate price reduction and policy support, but also encourage related innovations of real estate enterprises, such as leasing, financial leasing and real estate banks. Strive to digest one-tenth to one-twentieth of the inventory every year. In this process, financing and mortgage must be innovated. It is impossible to concentrate all the risks in one basket. Next year's policy is to actively destock, and the price reduction cannot be kept falling. Personally, I think there should be ups and downs. Only in this way can we strongly support the implementation of this policy.
Finally, urbanization is the foundation of demand development.