The Supply-Side Reform and Cold-Heading Machine Industry
Abstract: The supply-side reform will be the main direction and policy focus of our nation’s macroeconomic management in the coming period. The paper tries to understand the supply-side reform in per-spective of the cold heading machine industry and analyzes why to change, what to change and how to change. Current problems in the cold heading machine industry in china are that it is in the low- end industrial value chain with low-margin. The increase of operating costs and the affect of financial crisis result in overcapacity and operational difficulties of some cold heading machine manufacturers. Meanwhile, investment of R&D is inadequate and innovation capacity is weak, as well as the turning point appears in labor supply at the first time. The number of researchers is relatively too small. To solve these problems, the direction of supply-side reforms is proposed for the cold heading machine industry.
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