供给侧改革是经济发展重中之重

Jiang Wan is a young mother living in Beijing.

Like many in her age demographic, she prefers to shop online, and gravitates toward foreign products for her baby girl.

"I usually choose to buy well-known brands in bulk. I think when it comes to children's products, foreign companies are a step ahead. I know a lot of things that have foreign labels are often produced in China, which shows we here in China have the ability to produce quality products. So, one has to think that it's a lack of motivation from a business perspective that prevents Chinese firms from manufacturing quality products."

Jiang Wan's attitude reflects a prevailing attitude among many consumers in China.

While many products on the shelves are labeled "Made in China," many people still don't trust the items being put out by Chinese firms.

Niu Li, head of Macroeconomic Research with the State Council, says part of the problem is many manufacturers in China are still not willing to innovate and adapt to today's consumer demands in China.

"Many traditional manufacturing industries in China face problems, which includes excess production capacity. But even though we are pumping out a lot of products, many people are still looking toward foreign products. The demand for Japanese toilet seat covers is a good example. There is real demand for these types of advanced products, but our manufacturers are unwilling to make the switch to more value-added products. This is why we urgently need to strengthen our supply-side reform policies to promote innovation and improve product quality."

At the annual Central Economic Work Conference which began on Friday, "supply-side reform" is one of the major topics up for discussion.

A series of new policies are reportedly being discussed to tackle issues which have dogged Chinese consumers for years.

They're said to include ways to improve production quality, as well as customer service.

Broader-based issues such as environmental protection and opening-up further to the global economic system are also said to be part of the plans.

The reforms also include ways to shed excess production capacity, particularly aimed at weeding-out companies which continue to pump-out cheap, low quality products.

Former London School of Economics and Political Science Professor Roger Tucci says the planned reforms should help streamline the Chinese economic structure.

What we see in the new five-year plan is a move what we call supply side economic management, where the condition of maximizing supply abilities, prices availability, logistics' transportation etc. becomes top priority. The key to all these is not that other elements are being downgraded or less important, but about the focus of achieving levels of economic efficiency within the Chinese economy.

The Central Economic Work Conference is held every December.

It's meant to not only review the economic performance in China over the course of the year, but also map out a strategy for the coming year.

The underlying policy direction of the government should be made clear when the official economic policy document is released, which will come a few days after the annual session comes to an end.

For CRI, I'm Niu Honglin.