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Chapter Two
Supply-Side Reform: Giving Full Play to Sources of Wealth

The Communiqué of the Third Plenary Session of the 18th CPC Central Committee in 2013 stated,“We must make sure that the vigor of labor, knowledge, technology, managerial expertise and capital keeps bursting forth; that all the wealth-creating sources fully flow; and that the fruits of development benefit all people still more and equally.”How does China deepen supply-side reform, optimize institution and market conditions for economic growth, lower factor costs and improve innovation ability so as to give full play to sources of wealth?