Demand response (DR) is an effective tool which resolves inconsistencies between electric power supply and demand. It further provides a reliable and credible resource that ensures stable and economical operation of the power grid. This paper introduces systematic definitions for DR and demand side management, along with operational differences between these two methods. A classification is provided for DR programs, and various DR strategies are provided for application in air conditioning and refrigerating systems. The reliability of DR is demonstrated through discussion of successful overseas examples. Finally, suggestions as to the implementation of demand response in China are provided.