【摘要】In the new normal, China must develop a new economy in order to foster new engines of growth. The new economy differs from the traditional economy in many respects,such as its underlying drivers and technical, industrial and organizational characteristics.This paper reveals six aspects of the mechanism of the new economy, including firm entry strategy, new opportunities, market demand, transition of production factors, industry support and the role of the government. In addition, the operation of the new economy is explained in terms of its underlying drivers, internal operations and external environment.In the new economy, fundamental changes have occurred in monopoly, information asymmetry, externalities, public goods and information security necessitating a new regulatory approach. Regulatory reform is therefore inevitable. China should steadfastly transition from regulatory tightening to deregulation, from economic regulation to social regulation, from discriminatory regulation to fair competition, from the positive list to the negative list, from ex-ante review and approval to ex-post supervision, and from specialized regulation to integrated regulation. Innovations must be encouraged through the use of"regulatory sandboxes."