On Supply-side Reform

After the 2008 financial crisis, reality prompts people to reflect on the traditional theoretical frameworks of economics and the practical experiences based on macro-control and "demand management." The new reality also stimulates innovative efforts to "connect theory with practice" and leads academia and decision-makers to pay unprecedented attention to "supply management" regulation and structural supply-side reforms. Based on the theoretical innovation of the "new supply-side economics," this paper systematically discusses China’s supply-side reform and its related issues from four levels—the innovation of closely connecting theory with practice, the problem-oriented innovation of re-making the momentum system under the new normal, the innovation for overall and long-term goals based on comprehensive planning and systematic engineering, and the innovation of institutional supply centered on reforms and modernization.