(Source: "Guangming Daily" 2025-04-24 Page 15)

[Financial Analects]

Recently, the complex and severe external situation has caused my country's export-oriented economy to face greater challenges to a certain extent. Enterprises' exports to the United States have been hindered, and they are facing higher costs and a more difficult market environment. But at the same time, we must also see that external demand is facing the adverse effects of increasing uncertainties, which will force my country to reduce its dependence on external circulation, give full play to the advantages of my country's ultra-large market, strengthen the construction of a large domestic market, thereby promoting the domestic circulation, promoting domestic demand, and building a new development pattern with the domestic circulation as the main body and the domestic and international dual circulations reinforcing each other.

The ultra-large domestic market provides our country with strategic depth to resist external shocks. "China's economy is a sea, not a small pond." my country has a population of more than 1.4 billion, the largest middle-income group in the world, and constitutes the world's second largest consumer market. This ultra-large-scale market has huge development resilience, potential and room for maneuver. By reducing transaction costs and eliminating regional barriers, it can effectively activate huge consumption and investment potential, disperse external shocks, reduce dependence on a single export market, and build endogenous power guarantees for my country to respond to external shocks and promote high-quality development.

To promote the construction of a unified domestic market, we must reconstruct the national unified market rules system. It is necessary to improve the dynamic adjustment mechanism of the negative list for market access, deepen the reform of "decentralization, regulation and service", streamline approval matters and processes, optimize the business environment, and strengthen anti-monopoly and anti-unfair competition law enforcement. Building a national unified factor market and breaking down barriers to factor flow should not only promote the cross-regional flow of traditional production factors, but also activate the circulation momentum of new production factors such as data. Relying on the data exchanges in Beijing, Shanghai, and Shenzhen, a national unified data element trading system will be established. Clean up local protective policies, establish a negative list for cross-regional factor flow, break down local professional qualification barriers, promote the flow of talents, and promote the real-time migration of household registration, pension insurance, and medical insurance accounts across the country. It is necessary to optimize the regional coordination mechanism, effectively narrow the regional development gap and release more regional domestic demand potential by breaking down regional barriers and strengthening inter-regional industrial collaboration. Promote the balanced layout of new infrastructure such as 5G base stations and data centers. Promote the coordinated development of urban agglomerations and metropolitan areas and build an integrated regional market pattern. Promote the gradient transfer of industries in the east, middle and west, and promote inter-regional industrial collaboration. Support the development of specialty industries in the central and western regions and enhance industrial competitiveness.

Deepening supply-side structural reform is the key to strengthening the construction of a large domestic market. At present, my country's economy has shifted to a stage of high-quality development, and the traditional factor-driven model is unsustainable. It is urgent to release new momentum through supply-side structural reforms to achieve the transformation from "quantitative expansion" to "qualitative improvement" and provide structural support for the construction of a large domestic market. Through technological innovation and industrial upgrading, we will increase the supply of high-quality products and services on the supply side, improve supply quality, optimize the supply structure, stimulate market vitality, and meet the people's high-quality consumption needs. Through policy support and institutional guarantees, we will create a market environment conducive to innovation, implement key core technology research projects, break through technical bottlenecks in key areas, encourage enterprises to increase investment in R&D, promote in-depth integration of industry, academia and research, and accelerate the transformation of scientific and technological achievements. Promote industrial upgrading and reconstruct the supply and demand adaptation system. Promote the intelligent and green transformation of traditional industries, expand mid-to-high-end supply, and solve the mismatch between supply and demand. Cultivate "specialized, specialized and innovative" enterprises, focus on making up for shortcomings, lengthening longboards, and forging new ones to ensure the stability and smoothness of the industrial chain and supply chain.

Boosting consumption is the key to building a unified national market, which can transform the advantages of ultra-large-scale markets into growth momentum for domestic demand. As final demand, consumption is not only related to people's livelihood, but also to economic growth. It directly determines the cycle efficiency and sustainability of social reproduction. Its scale expansion and quality improvement have a multiplier effect on stabilizing employment, optimizing supply structure, and promoting technological innovation. To further boost consumer confidence, we need to implement actions to increase the income of urban and rural residents, improve the wage growth mechanism, increase the proportion of labor remuneration in primary distribution, appropriately increase the basic pension for retirees, and increase the disposable income of the people. At the same time, we should improve the social security system, reduce the people's burden on medical care, education, elderly care and other aspects, so that the people dare to consume and are willing to consume. Increase efforts to cultivate and create new growth points such as new consumption scenarios and new business formats. Encourage and support enterprises to use new technologies and new models to innovate, create new consumption scenarios such as trendy night markets and trunk markets, develop new business formats such as the experience economy and ice and snow economy, and encourage the development of new consumption models such as new retail, live streaming, and cultural and tourism consumption integration to meet the diverse and personalized needs of consumers. Promote the upgrading of the consumption structure, expand the supply of service consumption, increase the supply of service consumption areas such as education, medical care, elderly care, and childcare, improve the quality and level of services, and meet residents' upgraded needs for service consumption.

Expanding investment is an important means to strengthen the construction of a large domestic market and promote domestic demand. Through precise and effective investment, we can accelerate the cultivation of new productive forces and make up for the shortcomings of the industrial chain. We should focus on basic, public welfare and strategic emerging industries, reconstruct the logic of fiscal fund allocation, and focus on "stuck" technical problems, shortcomings in people's livelihood, and strengthening the layout of strategic emerging industries. Continue to promote the "two emphasis" and "two new" strategies and optimize the investment layout. Focus on the implementation of major national strategies and the construction of security capabilities in key areas, intensify the expansion of the implementation of the "two new" policies, provide greater support for large-scale equipment updates and the replacement of old consumer goods, and study the inclusion of more products and fields with wide market demand and high replacement potential into the scope of policy support. Activate the vitality of social capital participation, break down hidden barriers to market access, optimize the social capital investment ecology, innovate market-oriented financing tools, and encourage social capital to participate in investment in strategic emerging industries and future industries.

(Authors: Lan Qingxin and Zhang Xiaofeng, both professors at the National Institute of Opening up, w88 casino)

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