This year is not only the outset of runoff period for building moderately prosperous society, but also a curial year to push structural reforms. In the context of economy downturn, bottlenecks of “troika” (investment, export and consumption), and “unmatched supply and demands”, supply-side reform has been a good approach for Chinese economy. How to understand the “supply-side reform” on the level of Chinese Government? And, how can the enterprises align their actions with government? On April 23^rd, 2016 China Green Companies Summit was held. Jiang Xipei, Vice Chairman of China Enterprises Cooperation, Board Chairman and CEO of Far East Holding Group, Zhang Yichen, President of CITIC Capital, Liu Yonghao, President of New Hope Group, Xu Jinghong, President of Tsinghua Holdings, Zhu Yunlai, previous President of CICC, Bao Zeshi, Executive Director and China Representative General of Asahi Glass Company, Sergio Bertasi, Chairman of China-Italy Chamber of Commerce and China Chief Representative of Italian Bank Intesa SanPaolo attended this summit and deeply discussed this issue.

Picture of 2016 China Green Companies Summit “The Supply-side Reform Bottleneck”

Jiang Xipei mentioned that, the core of supply-side reform was quality and efficiency improvement. There was no quick access; to build environment by top design was the only solution.

Jiang Xipei was giving speech

Jiang Xipei thought there would be a huge expense for resolving excessive products supply and lack of quality products and service; supply-side reform needed joint efforts. He suggested a modification in Law of the People's Republic of China on Tenders and Bids. If the core terms remained, i.e. low price prevailed in commercial management, many enterprises could not provide quality products and services; then, the law of bad money driving out good money would damage normal benefits of enterprises and entrepreneurs. It was short-living and even may shake the sustainable and healthy development of economy.

 “I think supply-side reform is new trend. How to improve quality and efficiency, and how to transform and upgrade is a long-term task. Therefore, we shall offer our best technologies, products and services to Chinese society, which have achieved great development.” Jiang Xipei said, one of the entry points was establishment of credit system, especially whole-society credit system. Credit meant benefits and easier communication among commercial action and interpersonal communication. Otherwise, huge expense will be paid without credit. Currently, Central Government is gradually optimizing a systematic project including country governing and society development. Side-supply will be available.

In order to resolve mismatching, excessive production capacity and recover profitability, what sort of supply-side reform will traditional cable industry face? Jiang Xipei thought, in order to be world-leading, the key problem for cable industry is how to master the strategy direction and how to push the reform by technology. 5 years ago,Far Eastbecame the service provider of smarter energy and smarter city system, and attained achievement. With tide of global energy network construction, more potential development space and reform dividends would be available via Internet of Things, and integration of production, technologies and operation. He stressed that entrepreneurs shall have both maximum and minimum views for successful operation.