Full coverage: 2016 Central Economic Work Conference

Head of China's top economic planning body says the country will continue to reduce its surplus industrial capacities and adjust its economy according to the people's demand.

This is also a major goal in China's supply-side reform. Minister of National Development and Reform Commission Xu Shaoshi says companies' profitability improved this year in the real economy, and they could better manage their business according to market demand.

Xu also says the government will allow companies more leeway on how they run their business.

"We will use the market and the law to regulate enterprises. If a company can adjust its work according to the market and make its own decisions, the government will not interfere," he said.