Abstract: Supply side structural reform is the only way to adapt to and lead the new normality of economic development. From the international financial crisis in 2008, China’s factor supply conditions of economic growth change fundamentally gradually, the capital output ratio, population and total factor productivity decrease, which constantly weaken the basis of long term economic sustainable development, and push reforms to restructure economic momentum. On dealing with the relationship between government and market, perfecting the market system, improving resource distribution efficiency, the supply side structural reform should include key areas such as finance, taxation, price, state owned enterprises, land, social security, science and education, and investment. On the basis of distinguishing the reform’s macro economic impact, structural reforms which are conducive to the steady growth should be launched preferentially, followed by those reforms which have short term tightening effects but long term expansion effects, finally promote the complicated and sensitive reforms，in order to fully liberate and develop productive forces, and promote economic growth in medium and high speed.

Key words: structural reforms, total factor productivity, new normality