Zheng Yongnian: what kind of effective supply does China need? In order to realize the sustainable economic development, the Chinese government has put forward the new concept of "supply side" reform, but it is definitely not a simple application of Western supply to China. If this concept is to be effective in China, it is necessary to answer a lot of questions related to China’s economy. Western supply school is to answer the question of the west, as well, the Chinese supply school needs to answer the question of China. From the point of view of economic policy, there are at least a few key questions that should be answered: what is excessive? Where is the shortage of supplies? Where is the supply of the wrong? Over the supply of this reform is the need to deal with the three go, that is, to capacity, to inventory and to leverage. The production capacity and inventory is actually a return to things, and leverage is a matter of the system. Capacity and inventory can be in a short period of time to be able to deal with, but the "lever" that is, the transformation and removal of the system is a relatively long-term thing, it is difficult to be achieved overnight. Excess inventory and production capacity, which is related to the adjustment of the industrial structure. Through the "go" to facilitate the adjustment of the industry will be an effective way, however, the problem here is how to digest inventory and production capacity? Is the internal or external digestion, or both at the same time. If there is no practical plan, "go" is not easy, but in this regard, there is no profound study and study. More seriously, the emphasis on "go" at the same time people should be investigated whether there is a new excessive supply? In China’s policy environment, it is very important to discuss this issue. The reason is very simple, the new policy caused by the "follow suit effect" often quickly lead to the distortion of policy. In this regard, I have repeatedly discussed over the years, China’s excessive financial and internet. Over the financial aspects, to a large extent, China is taking place in the United States in 2008 before the situation. Since 2008, the United States has accepted the lessons of over finance, through re industrialization to revive the real economy, making the economy began to embark on a healthy development direction. While China is in the opposite direction, over the financial and Internet based in the rapid decline of the real economy. Financial excesses is a serious challenge to the internationalization of China’s economy. On the one hand, the financial internationalization has its own needs, because China is already a capital surplus country, need to be internationalized, and go to the world. The excess capital and capacity is "behind the rational Belt and Road Initiative" initiative, also contributed to the economic projects including AIIB. However, in terms of financial internationalization, China has not enough financial strength, there is not enough operating experience. So in the interaction with the international capital, inadequate. It is undeniable that in recent years, the pace of capital outflows in the. All of these phenomena have led people to think about the problems in which there is insufficient supply. Here again there is a big direction of China’s economic development. To sum up, the era of simple expansion has passed, now is the time to build a quality economy, the pursuit of a refined high value-added economy. People need to think and act in accordance with the general direction, in the framework of the concept, it is necessary to.