Abstract: Under the new economic background,a series of new changes have occurred in the production system in terms of factor markets,innovation strategies and manufacturers' behaviors.Specifically,workers are both labors and information capital owners,information becomes a new factor of production innovation strategies increasingly open,and manufacturers pay more attention to probe the underlying demands of consumers.Under this background,China's production system faces the following prominent problems:the waste of resources and overcapacity in the production system,the group and regional differences in the production system under “digital divide”,and the obvious differentiation of labor factors in the production system.The strategy and policy of supply-side structural reform under the change of production system driven by the new economy is to deal with the relationship between government and market in the supply-side structural reform,to drive the match of supply and demand by innovation,to vigorously develop artificial intelligence,digital economy and other new industries,and to achieve coordination of supply-side structural reform and macro policies.

Key words: new economy, production system, supply-side structural reform