Among the three methods to analyze China's economic prospect, demand side analysis and supply side analysis both have pros and cons. We propose that the correct way is to primarily use Marxist theories and tools in the analysis while borrowing useful ideas and techniques from Western economics. In addition, to correctly interpret the “supply side structural reform”，we must understand that the gross，structure and short-long term problems exist in both supply side and demand side, with structural reform necessary on both sides.We should clearly differentiate structural reform and structural adjustment. To cope with economic downturn，we must have overall coordination and deepened reform，enhanced supply and demand sides, and both long and short term considerations.

Editor: Zhong Yao

Studies on Marxism.2016.No.4.