The supply-side structural reform is to promote structural adjustment, correct the distortion of factor allocation, expand effective supply, improve the adaptability and flexibility of supply structure to demand changes, improve total factor productivity, better meet the needs of the broad masses of the people, and promote sustained and healthy economic and social development.

The fundamental purpose of supply-side structural reform is to improve the level of social productive forces and implement the people-centered development thought. While moderately expanding the total demand, we should de-capacity, de-stock, de-leverage, reduce costs and make up shortcomings, strengthen high-quality supply from the production field, reduce ineffective supply, expand effective supply, improve the adaptability and flexibility of the supply structure, and improve the total factor productivity, so that the supply system can better adapt to the changes in the demand structure.