Supply and demand are the two basic aspects of the inherent relationship in the market economy, and they are in a dialectical relationship that is opposite and unified. Since the new era, in the face of the complex and changeable domestic and international situation, the Party Central Committee has placed great importance on coordinating the expansion of demand and the optimization of supply, and has continuously deepened its understanding of the law-based relationship between aggregate supply and aggregate demand, thus promoting high-quality development to a new. General Secretary Xi Jinping clearly proposed at the Central Economic Work Conference in 2024 that in our practice, we have continuously deepened our understanding of the laws governing work, and one of them is that "we must coordinate the relationship between aggregate supply and aggregate demand and keep the national economic cycle unblocked." This understanding of the not only reflects the rich practice and successful experience of China's macroeconomic governance in the new era, but also provides theoretical guidance for the smooth national economic cycle and the formation of higher level of dynamic balance between supply and demand, and more importantly, it has made an important contribution to the construction of a self-reliant knowledge system of Chinese economics. It of great academic value and practical significance to accurately grasp the theoretical breakthrough and innovation of "coordinating the relationship between aggregate supply and aggregate demand".

Deepening systematic recognition of the law of supply and demand
Total supply and total demand determine the important macroeconomic aggreg such as the overall output level of an economy, thus determining the basic pattern of macroeconomic operation. Total supply refers to the sum of all final goods and services that a country or can provide within a certain period of time, reflecting the optimal production capacity of the economy under specific conditions. The factors affecting total supply mainly include traditional production factors such as capital and, as well as other important factors such as technology, institutions, and growth policies. Total demand refers to the total demand for goods and services by the whole society, including domestic demand foreign demand. The factors affecting total demand mainly include household consumption, investment, net exports, government expenditure, monetary policy, and fiscal policy, etc. When the factors affecting total supply total demand change, the momentum of macroeconomic operation will change accordingly, and the general price and total output of the economy will also change accordingly. The macro-control department can influence total supply and total demand by introducing economic policies.
For a long time, we have attached great importance to the balanced development of total supply and total demand in the macrocontrol and macroeconomic governance of socialism with Chinese characteristics. As early as the "Eighth Five-Year Plan", it was clearly proposed that efforts should be made to maintain basic balance between total social demand and total social supply. The "Eleventh Five-Year Plan" also clearly requires that we should continue to do a good job in balancing total and total supply, especially strengthening institutional coordination, planning coordination, and policy coordination. It should be seen that the macro-control and macroeconomic governance of socialism with Chinese characteristics are not to the goal of short-term stability, but aim to achieve a variety of important goals such as short-term stability, long-term growth, and macroeconomic structure optimization. short-term stability goals, it is mainly necessary to exert efforts from the total demand. For important goals such as long-term growth and macroeconomic structure optimization, it is necessary focus more on total supply, and pay attention to strengthening the coordination and cooperation between total supply and total demand. It is thanks to the scientific regulatory concept of balanced development of total and total demand that China's economy has successfully responded to challenges such as the Asian financial crisis at the end of the last century and the international financial crisis in 200.
Since the 18th National Congress of the Communist Party of China, the Central Committee has placed greater emphasis on the relationship between aggregate supply aggregate demand, and has deepened its understanding of the regularity of this relationship as the domestic economic development stage and the domestic and international environment and conditions change.
First, taking-side structural reform as the key link, we have focused on optimizing aggregate supply to better meet changes in aggregate demand. General Secretary Xi Jinping first proposed the concept of “ply-side structural reform” in 2015. The reason why we put forward the supply-side structural reform is that the main contradiction we were facing at that time on the supply side. As the economy and society continue to develop, the demand of residents continues to upgrade, but the quality of products and services provided by enterprises does not keep up the changes in demand. To better adapt to the changes in aggregate demand, it is necessary to push forward the supply-side structural reform. From a long-term perspective and in of international experience, the fundamental driving force of economic development must come from the supply side. To advance supply-side structural reform, the main thrust is to improve the quality of the system, reduce ineffective and low-end supply, expand effective and mid- to high-end supply, and enhance the adaptability and flexibility of the supply structure to changes in demand and to improve total factor productivity.