Abstract: Demand management and supply management are the means of macroeconomic management, and the focus of macroeconomic management are different in the different stages of economic development. In the rapid growth of China's economy, demand management played an important role, however, China's economic development has entered "the New Normal", and the main contradiction of economic development is shifted from the demand side to the supply side, so China needs to carry out the structural reform of supply side in three aspects of factor, industry and system to improve the quality and efficiency of economic development, based on correct methodology including innovation leading, endogenous driving, pattern transformation and structural optimization, besides, China needs to learn from other countries' successful experience.