ABSTRACT
Some researchers believe that the factors leading to the decline of China’s economic growth comes from insufficient external demand related to the world financial crisis, which is a cyclical factor. The decline of the potential growth rate caused by supply-side factors due to the relative scarcity of production factors and by the change in the rate of total factor production is a trend factor and cannot be reversed. This chapter explains China's population change, its impact on economic growth, and the trend of government policy changes and look forward to the prospect of China's economic and social development. Supply-side structural reform focuses on achieving an effect of increasing the potential growth rate through an improvement of labor participation, fertility rate, human capital, and total factor productivity. China’s economic development has entered a new normal, which brings new challenges as well as rare opportunities.
