It remains controversial on how China should develop under the new normal, although the official document has standardized the thinking on this matter, there remains confusion over the actual implementation of this matter.

Recently, in his speech, Xi Jinping highlights that the major contradiction is still on the supply-side.

ANBOUND's research team is of the view that the innovations and reforms that are beneficial to supply-side reform will be encouraged by the policies, while policies, development and investment plans that distort the supply and demand will be restricted by the central government.

The focus of the structural reform will no doubt focus on supply-side reform and the allocations of policy resources and financial resources will be inclined towards supply-side sectors.