Hong Junjie: "Dual cycles" promote each other, and high-quality development can be expected
(Source: "Guangming Daily" Page 02 2020-07-09)
On May 14, 2020, the Standing Committee meeting of the Political Bureau of the CPC Central Committee proposed for the first time “building a new development pattern in which domestic and international dual cycles promote each other.” During this year’s Two Sessions, General Secretary Xi Jinping once again emphasized the need to “gradually form a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other.” Building a new development pattern based on "dual circulation" is a major strategic plan of the Party Central Committee to promote the development of my country's open economy to a higher level in the context of significant changes in the domestic and international environment.
In the early days of reform and opening up, my country relied on its abundant labor force and other factor endowments to vigorously develop export-oriented foreign w88 and strive to integrate into the global value chain. Under the guidance of the basic national policy of reform and opening up, my country's economy has grown rapidly and its international competitiveness has rapidly improved. It has become the world's largest trader of goods for many consecutive years and occupies an important position in the global value chain. Currently, the world is undergoing major changes unseen in a century. The outbreak of the COVID-19 epidemic and its rapid spread around the world, coupled with multiple unfavorable factors such as Sino-US w88 friction and the WTO facing its biggest crisis since its establishment, have caused a sharp increase in uncertainty in the international environment. The third wave of globalization has entered a stage of deep adjustment. Under the overall requirement of high-quality development of the domestic economy, my country's future economic development requires stronger endogenous power, and the traditional factor cost advantage is no longer sustainable. Against this background, the Party Central Committee reviewed the situation and proposed the major strategic concept of building a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other.
Our country’s economy has the characteristics of sufficient potential, strong resilience, and large room for maneuver. It is not only a “global factory” but also developing into the world’s largest market. Taking the domestic cycle as the main body aims to make full use of my country's complete industrial system, give full play to my country's huge market advantages and innovation potential, stabilize the industrial chain and economic operation, and effectively hedge against growing international risks. The new development pattern of domestic and international mutual promotion aims to organically coordinate the two overall domestic and international situations. The synergy of the two markets and the two resources will provide greater space for my country's economic development and industrial upgrading. It is also the need to create a relatively good external environment for my country's development. The "dual circulation" strategy helps us seize the initiative in the international division of labor and ensure the safe and stable operation of our country's economic system. It is a grand strategy that effectively responds to the increasingly complex international environment and ensures that our country's economy achieves high-quality development. It requires scientific planning and active implementation.
First, expand domestic demand, stabilize operations, and improve the domestic circulation system. In terms of expanding domestic demand, while promoting traditional consumption, we will actively cultivate new consumption, strive to solve the problem of domestic market segmentation, and build a unified market. According to statistics, as of March 2020, the number of online shopping users in my country reached 710 million, and the number of online payment users reached 768 million. It can build social e-commerce and other service platforms, build a cloud consumption ecosystem, and use cloud consumption as an important fulcrum to create consumption increases. In terms of optimizing and stabilizing the domestic industrial chain, we should actively learn from foreign advanced technologies while actively strengthening independent innovation, using the spirit of time and waiting to make up for the shortcomings of core technologies, supporting the layout and development of key industrial chains, their core links and chain owner enterprises in my country, and improving the level of domestic regional value chains to prevent international risks. Making good use of the different comparative advantages of the eastern, central and western regions of my country and implementing comprehensive policies to promote the rational layout and coordination of industrial chains among regions will not only free up more space for the development of mid- to high-end industries in economically developed regions, but also promote relatively backward regions to achieve sustainable economic and social development.
Secondly, promote openness, optimize the environment, and promote double-cycle benign interaction. The current global economy has been highly integrated. We are among you, and you are among us. There is no turning back in opening up to the outside world. We can only move to a higher level. We should continue to expand opening up to the outside world, give full play to the role of foreign-invested enterprises as a bridge, actively use free w88 zones (ports) to do pilot work, and connect with high-standard international economic and w88 rules. We need to be alert to the risks of industrial relocation and the security of overseas supply of commodities, increase opening up, and continue to optimize the foreign investment environment. At the same time, we should continue to improve our country's high-standard free w88 zone network, especially complete the implementation of RCEP (Regional Comprehensive Economic Partnership Agreement) as soon as possible, and strive to promote China-Japan-ROK free w88 zone negotiations. Through high-quality promotion of the "Belt and Road" construction, we will strengthen connectivity in all aspects, create a new benchmark for international economic and w88 cooperation, and promote the domestic and international dual circulation to achieve positive interaction at a higher level and in a wider space.
Finally, promote innovation, empower people, and build a three-dimensional industrial chain system. As a new round of scientific and technological revolution is brewing and ready to take off, we should adhere to the strategy of strengthening the country through science and technology, focus on building a high-level talent team, improve innovation systems and mechanisms, accelerate the construction of new infrastructure such as 5G, artificial intelligence, big data, and industrial Internet, and give new momentum to the "dual cycle". Promote the upgrading of traditional industries and assist the development of emerging industries through innovation. While striving to stabilize my country's important position in the global value chain, we will make great efforts to actively build a global industrial layout with China as the mainstay, and build a multi-level and three-dimensional industrial chain system covering local, regional and global based on comprehensive consideration of factors such as competitiveness, cost and safety. Efforts should be made to consolidate the Asian production network with my country as the core platform, strengthen industrial integration with countries along the "Belt and Road", focus on the co-construction and mutual integration of the value chains of developed countries and developing countries, and feed back the high-quality development of the domestic economy.
(Author: Hong Junjie, Director of the Department of Economics and Dean of the w88 casino of International Economics and w88, w88 casino)
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