(Source: "China Economic Times" 2025-12-30)
When the Central Economic Work Conference systematically summarized the understanding of the laws of economic work under the new situation, it proposed the "five musts" for doing a good job in economic work. Among them, "we must work hard to cope with external challenges", which has basic and traction significance and profoundly reveals the fundamental methodology of economic work at present and in the future. At present, the world is undergoing major changes unseen in a century. The international economic and w88 order is undergoing profound adjustments. Factors such as geopolitical conflicts, rising protectionism, and intensified technological competition are intertwined and superimposed. The external uncertainties faced by my country's development have significantly increased. In this context, the key to seizing the initiative in development lies not in whether the external environment can be improved, but in whether the own system is stable and whether the capabilities are strong. Working hard on internal strength is not a stopgap measure, but the fundamental way to respond to external challenges. It is a strategic choice to firmly base the certainty of development on its own supply system, demand structure and institutional capabilities. The more severe the external situation is, the more we must firmly hold the initiative and certainty of development in our own hands.
1. An inevitable choice under the profound changes in the external environment
Currently, the external environment in which our country is developing is undergoing profound changes. The adjustment of the international economic and w88 order is accelerating, technological competition and geopolitical games are intertwined, and external shocks are long-term and structured. Against this background, it is urgent to systematically examine the impact and transmission mechanisms of external challenges on my country's economic operations. At the same time, the development and changes of things are determined by internal factors, and external factors work through internal factors. The results of external shocks depend on the internal certainty of our economy.
First, as global w88 frictions continue to increase, w88 policy uncertainty increases, and the external circulation is blocked, only by working hard on internal strength can my country grasp the certainty of economic growth. The global w88 system has become more fragmented. In the "Trump 2.0" era, the U.S. w88 policy toward China not only continued high tariffs, but also showed a tendency of "decoupling and breaking links." Tariff threats and more aggressive w88 barriers have brought systemic risks to Sino-U.S. relations; the EU has begun to move toward protectionism, proposing new w88 rules such as foreign subsidy regulations and carbon border adjustment mechanisms. The Central Economic Work Conference proposed “better coordinating domestic economic work and international economic and w88 struggles” in response to this trend. The increasing w88 friction will become an external challenge that our country needs to face in the long term. Faced with the obstruction of external circulation and the instability of external demand, our country must take the initiative to survive by enlarging the domestic market and smoothing the domestic circulation. The supporting conditions and basic trends for my country's long-term economic growth have not changed. Looking inwards and practicing hard on internal skills can better cope with external shocks.
Second, the intensity of global competition in key technologies and industries continues to rise, and industrial and supply chains are being “de-risked” and reconstructed. In the face of external technological restrictions, only by hardworking on internal strength can my country grasp the certainty of independent opening up. The current fierce global technological competition and geopolitical struggle have brought about a decline in production efficiency and an increase in costs, hindering my country's industrial development and the improvement of its global division of labor status. The U.S. "Chip Act" restricts high-tech exports to China, and my country's semiconductor and other industries are facing "stuck" problems; geopolitical conflicts have intensified risks in my country's supply chain, the security of important logistics channels is threatened, and the supply of key mineral resources is uncertain. Qualitative changes in the external technological environment mean that the logic of "making is worse than buying" has completely failed. my country must take the initiative in development by achieving independent control over key links in the industrial chain. The stronger the resilience of my country's industrial and supply chains and the more complete the supply system, the more capable it is of breaking through technological limitations and occupying a favorable position in the global division of labor.
Third, the global economic development momentum is insufficient, and the game between great powers continues to evolve. Faced with insufficient external momentum, only by hardworking on internal strength can our country grasp the certainty of managing the international space. Global economic growth tends to slow down and faces certain downside risks. Global aggregate demand is weak. The slowdown in growth means that countries have entered a stage of stock competition. The scope and intensity of the game between great powers is increasing. Some Western countries regard my country as their main strategic competitor. New rules such as green and low-carbon are accelerating the institutionalization, and the global competition landscape is being reshaped. Only by constraining external uncertainties within a predictable and manageable institutional framework can we hedge against the uncertainty of the external environment with the certainty of high-quality development, maintain strategic focus and win the initiative in the complex game of great powers. By taking the initiative in opening up through the power of institutional innovation, my country can not only resist the slowdown in global economic growth, but also provide the world with broader market opportunities and better technology supply, and inject more stability into global economic development.
2. The inner logic and strategic significance of hard training in internal strength
Currently, the global political and economic system is undergoing in-depth restructuring, and the globalization process has entered a stage of deep adjustment. The rise of technological nationalism and the rising demand for security in industrial and supply chains have led to structural changes in the external conditions on which the traditional growth model relies. Against this background, the external constraints faced by my country's economic development continue to increase, and the growth path that relied on the expansion of external demand and factor input in the past has approached the bottleneck range of diminishing marginal effects. To cope with this historic transformation challenge, the core point is to shift to a new development paradigm centered on "internal strength cultivation" and achieve endogenous reshaping of growth momentum.
“Working hard to cultivate internal strength” is not an abstract slogan, but a fundamental change in the development focus and resource allocation logic, that is, from excessive attention to external uncontrollable factors to the systematic shaping and improvement of internal capabilities. Specifically, this shift is reflected in three closely connected dimensions: first, to promote the transformation of technological innovation from following introduction to leading from the source, focusing on building an effective transformation mechanism from basic research to industrial application, and cultivating independent innovation capabilities in key and frontier areas; second, reducing institutional transaction costs through deepening reforms, creating a fair and predictable market environment, and stimulating the long-term vitality of various entities; third, building a modern industrial system that takes into account safety and international competitiveness, promoting the upgrading of industries to intelligence and green, and comprehensively improving the resilience of the industrial chain. These three dimensions support each other and together constitute the endogenous driving force to respond to external challenges and consolidate the foundation for long-term development.
In the context of a significant increase in global economic and political uncertainty, turning to internal strength cultivation has far-reaching strategic significance beyond short-term adjustments. First, it is a stable cornerstone for coping with external shocks and ensuring development security. In the context of weakening global economic linkage and intensified risk transmission, the vulnerability of economies often stems from internal structural shortcomings and insufficient capabilities. By systematically cultivating internal strength, especially continuous investment in independent technological innovation and industrial chain resilience, we can significantly reduce external dependence on key technologies and core components and lay a solid foundation for national economic security. Second, it is a power conversion hub to break through growth bottlenecks and cultivate long-term competitiveness. According to the endogenous growth theory, the fundamental source of long-term economic growth lies in the accumulation of knowledge and human capital and the optimization of systems. When the driving force of traditional factors weakens, only through continuous internal investment, that is, increased investment in R&D, education, skills training and institutional innovation, can total factor productivity be effectively improved and a fundamental transformation from factor scale driven to innovation efficiency driven be achieved. Third, it is an indicator signal to optimize development expectations and guide long-term optimal allocation of resources. In an environment of uncertainty, market entities are prone to short-term behavior. Collaboration between the government and enterprises to promote in-depth internal strength cultivation can send a clear signal to society to firmly promote market-oriented reforms, protect property rights, and encourage long-term innovation. This strategic determination can effectively correct the deviation of market expectations, guide financial capital from asset speculation to investment in the real economy and innovation, and encourage human capital to shift from short-term arbitrage to long-term accumulation of professional capabilities, thus forming a new pattern of resource allocation in a virtuous circle in the whole society. Fourth, it is a prerequisite for participating in and shaping the future global economic and w88 governance system. Future global competition will increasingly be characterized by competition in rules, standards and governance models. Without the support of core technologies and advanced industries, it will be difficult to have a substantial say in the formulation of emerging rules such as digital w88 and technical standards. Solid internal strength is the guarantee for institutional openness, enabling our country to no longer passively accept international rules, but based on its own development practices, actively contribute China's solutions, and become a co-shaper of the global governance system.
3. Practical path to transform external pressure into endogenous power
The key to practicing internal strength hard is to use reform as the traction, domestic demand as the fulcrum, innovation as the core, and governance as the guarantee to form an internal strength cultivation path that works together and achieves long-term results.
First of all, it is necessary to deepen reforms as a guide and establish a forcing mechanism to transform external shocks into the release of endogenous power. The uncertainty of the external environment is essentially a "stress test" of the operating efficiency and institutional resilience of the economic system. Under pressure, shortcomings are more easily exposed, and the space and urgency for reform are also magnified. To hone our internal strength, we must push forward reforms in key areas and key links with greater intensity, and break down institutional obstacles that restrict the smooth flow and effective allocation of resource elements. By deepening the market-oriented reform of factors, improving the fair competition system, and rectifying "involution" competition, we will guide capital, technology, talent and other resources to gather in areas with greater production efficiency and innovation capabilities. Only by allowing the market mechanism to operate truly efficiently can the cultivation of internal strength shift from "passive response" to "active enhancement."
Secondly, we must take strengthening the domestic circulation as the fulcrum and firmly install the "main engine" of economic growth in the country. Adhering to the dominance of domestic demand and building a strong domestic market are the most solid practical starting points for hard work on internal strength. Faced with the trend of increasing fluctuations in external demand and rising instability in the external cycle, we must increase the economic system's ability to absorb external shocks and its room for maneuver by smoothing the domestic cycle. On the one hand, by stabilizing employment, increasing income, and improving the social security system, we will consolidate the basic conditions for residents' consumption and enhance the stable support of consumption for economic growth; on the other hand, by improving the quality of supply and optimizing the supply structure, high-quality supply will better adapt to the upgrading of demand. At the same time, we will accelerate the construction of a unified national market, reduce institutional transaction costs, and improve resource allocation efficiency. The smoother the domestic circulation, the easier it is for external shocks to disrupt economic operations to be absorbed and mitigated internally.
Once again, we must focus on technological innovation and industrial upgrading to consolidate the internal strength base with the most strategic value. In the current international competition landscape, technology and industrial strength are key variables that determine development initiative. To work hard on internal strength, we must put the enhancement of independent innovation capabilities and the modernization level of the industrial system in a more prominent position. On the one hand, focusing on self-reliance and self-reliance in science and technology, we will accelerate the construction of an innovation system that is enterprise-centered, market-oriented, and deeply integrated with industry, academia, and research, and promote the efficient transformation of scientific research results into real productivity; on the other hand, we will strive to build a modern industrial system, promote the development of manufacturing in the direction of high-end, intelligent, and green, and enhance the integrity and resilience of the industrial and supply chains. Practice shows that what can really withstand the impact of "decoupling and breaking links" is not simple defense, but the advancement and competitiveness of one's own industrial system.
Finally, effective markets and promising governments must work together to provide a stable institutional environment for the cultivation of internal strength. Internal strength cannot be developed by a single subject. It must form a positive interactive pattern in which market vitality is fully released and government governance is accurately supported. On the one hand, we must continue to optimize the market-oriented, legal and international business environment, stabilize the expectations of market entities, and allow companies to dare to invest, innovate, and long-term layout; on the other hand, we must better play the role of the government, strengthen macro-control and risk prevention, and maintain the bottom line of no systemic risks. In the unity of "liberal release" and "good management", a dynamic balance between development vitality and safety bottom line is achieved, and long-term and stable institutional support is provided for the cultivation of internal strength.
In the face of profound changes and long-term uncertainties in the external environment, hard work on internal strength is not a periodic hedging strategy, but the fundamental path for the stable and long-term economic development of a large country. Only by continuously consolidating the foundation for its own development and building more certainty on the domestic demand system, industrial foundation and institutional capabilities can we enhance the resilience to respond to shocks and expand the room for maneuver in a complex and ever-changing external environment, maintain strategic determination in the face of high winds and waves, and win strategic initiative in the changing world.
(The author is the president and professor of w88 casino)
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