After three decades of rapid economic growth,China has become an upper-middle income country,although there are still hundreds of millions of people living below the UN defined,two-dollar-a-day,poverty line.Further economic growth at a reasonably high speed is required for China to become a high-income society within the next two decades.Achieving and maintaining a decent level of economic growth has become increasingly difficult because of various types of constraints,including a tight supply of labor,an inefficient financial sector,the tightening of environment regulations,rising social unrest,and growing intational economic friction.To unleash China’s growth potential,China needs and plans to deepen economic reform.This paper analyzes China’s comprehensive reform program to be implemented during the 12th Five-year Plan and beyond.This paper discusses some,but not all,of the reforms aimed at improving the supply side of the economy,that is fiscal and taxation reform,SOE reform,further opening market for competition,investment in R&D and human capital development,and further opening-up to the world.A simple VAR model is employed to analyze the impact of those reform measures on China’s future growth.It is hoped that these reforms,carried out in a coordinated way,will significantly improve efficiency on the supply side of China’s economic