>Due to quick demographic transition and increasing labor demand，it is necessary for China to further exploit the potentialities for labor supply so as to keep comparative advantages of economic development and race against time for changing economic structure and reforming institutions.To elaborate the issue，three aspects are addressed in this chapter.First of all，it is time for China to make good use of its potential of labor supply.On the one hand，this is partly because of relative short period of demographic dividend；on the other hand，this is because China spends more time on economic restructuring compared to other neighboring countries or areas.Second of all，the potentials include using aged labor forces，increasing labor force participation，accumulating human capital，and increasing labor market flexibility.Thirdly，several institutional factors that leave room to increase labor supply，including urban housing system，education，health care，and arrangement for retirement，etc.，are discussed.