(Yicai) Dec. 3 -- Stronger macroeconomic support and deeper structural reform are needed to support China’s economic recovery amid external uncertainties and internal challenges, according to experts.

Supply is outstripping demand, resulting in insufficient effective demand, according to Wang Yiming, vice chairman of the China Center for International Economic Exchanges. To meet its development goals by 2025, the country should boost demand through more aggressive macroeconomic policy, he said.

Specifically, Wang recommends raising the deficit-to-gross domestic product ratio to above 3.8 percent and expanding the issuance of special government bonds. The ratio is set at 3 percent for this year.

Insufficient demand is hindering a stable economic recovery, but the deeper causes lie in structural issues, systemic problems, and the external environment, according to Zhang Jun, former deputy director of the Development Research Center of the State Council.

Structural issues require gradual adjustment and transformation, and cannot be solved hastily, Zhang noted. While implementing macroeconomic policies and strengthening stimulus, it is important to stabilize expectations, boost confidence, and further strengthen the role of reforms in supporting economic recovery, he added.

The calls for stronger macroeconomic support and deeper structural reform come despite better economic data recently. Profits at industrial firms fell 10 percent in October from a year ago after slumping 27 percent in the prior month. The manufacturing purchasing managers' index also rose for the third straight month in November, inching up to 50.3 from 50.1.

Effectively expanding demand requires three key structural reforms, according to Liu Shijin, vice chairman of the Economic Committee of the 13th National Committee of the Chinese People's Political Consultative Conference.

The first is to strengthen social security and improve human capital by expanding the central government's authority over basic public services. The second is to promote rural land market reform in urban-rural integration zones, facilitating the two-way flow of labor, land, and capital, which would drive China's second wave of urbanization.

Lastly, the third reform is to refine the definition of property rights in economic activities, fostering innovation and long-term expectations for market-driven growth and enhancing the capacity of market players, Liu noted.

Editor: Futura Costaglione