Abstract: This paper explored the ways of transforming and updating the sports goods in China under the guidance of supply side reform by sorting out the principal theories of the supply school and Reagan economics and the grounds on which China's supply side reform was set forth and its theories, policies and thoughts based on an identification of the relationship between supply and demand and by referring to the current situation of the consumption of sports goods through an overview of relevant references and logical analysis. It reveals that 1) China supply side reform is neither a duplicate of the supply school, nor a Chinese version of Reagan economics. Rather, it is a brand-new thought rooted in the concrete conditions and practices of China. 2) There exists a predicament characterized with lack of supply and dislocation of supply and demand in sports goods. 3) The disparity in the information concerning the supply and demand of the market, the relatively low concentration of the market, the singleness of the technique intensity and the loss of social responsibility are the main cause of the supply and demand dilemma of sports goods in China. 4) In addition, “double innovations”, “double modernizations”, “double reductions” and “double arrangements” can serveto design new thoughts that can parallel the predicament in the conditions that the efforts in propelling the growth of sports goods industry are secured and relevant policies in addressing the potential problems that may arise in the process of reform are issued by the state.