The root cause of China's economic problems is a major structural imbalance, leading to poor economic cycle.iFeng: 中央直指中国经济问题根源：重大结构性失衡
"Significant progress" will be made next year in key areas of structural change, including capacity, inventory, deleveraging, cost reduction, and filling holes.
Continue to promote the steel, coal industry to resolve excess capacity.
To focus on solving three or four lines of urban real estate inventory too much problem.
To control the total leverage ratio under the premise of reducing corporate leverage as a top priority.
It is necessary to reduce the tax burden of enterprises, insist on expanding the reform and opening up, and uphold the basic economic system.
Full release: 2016年中央经济工作会议全文发布
Western media didn't pick up on the structural imbalances, instead focusing on policies:
WSJ: China Makes Stability of Housing, Financial Sectors Its 2017 Priorities
China’s blueprint marked a contrast to the year-ago goal of fixing problems such as industrial overcapacity and high debt levels, deemed necessary for healthier growth in the long run. The new plan indicates the government will still press ahead with such reforms, but that they have taken a back seat to steadying the economy, according to Chinese officials and economists.Reuters: China to strictly limit property speculation in 2017: Xinhua
“The top priority is on maintaining growth while controlling risks,” said a senior government adviser. “The promised restructuring of the economy will be carried out, but only when overall stability is ensured.”
China will strictly limit credit flowing into speculative buying in the property market in 2017, top leaders said at an economic conference on Friday, as reported by the official Xinhua news agency.Bloomberg: China Plans Prudent, Neutral Monetary Policy for Next Year
"Houses are for people to live in, not for people to speculate," Xinhua said, citing a statement issued by the leaders after the Central Economic Work Conference concluded.
"We must control credits in the macro sense," they said in the statement.
China will also boost the supply of land for cities where housing prices face stiff upward pressure, they said.
China’s top policy makers said they plan prudent and neutral monetary policy and proactive fiscal policy next year as they seek to sustain a steady expansion with room for reforms.
Preventing and controlling financial risk to avoid asset bubbles will be a priority, along with deepening supply-side structural reform, according to a statement Friday from the official Xinhua News Agency issued after officials concluded the three-day Central Economic Work Conference in Beijing. Policy makers said they aim to ensure currency and liquidity levels are both kept basically stable.