Economic dual circulation is a new economic development strategy proposed by China in order to adapt to the new situation of economic globalization and the new stage of China's economic development. The core of this strategy is to focus on the mutual promotion of domestic and international dual circulation, while adhering to the domestic cycle as the main body. Here are just a few of the benefits of dual circulation:
Strengthen the driving force of domestic demand-driven growthEmphasizing the domestic cycle can better give full play to the advantages of China's super-large-scale market and stimulate the potential of domestic demand, so as to promote industrial upgrading and technological innovation and promote high-quality economic development.
Enhance the stability and resilience of the domestic economyWhen the international environment changes, the domestic circulation can be used as a buffer zone to reduce the impact of external shocks on the domestic economy and ensure that the economy operates within a reasonable range.
Promote the linkage of domestic and international marketsThe domestic and international dual circulation is not closed, but through open cooperation, the two markets and two resources are better connected, and the market space and resource access channels of Chinese enterprises are broadened.
Improve China's position in the global industrial chainWith China's technological progress and industrial upgrading, China can play a more important role in the global industrial chain and enhance its global economic influence by participating in the international circulation.
Achieve high-quality developmentWith the domestic cycle as the main body, we can force the domestic economic restructuring, accelerate technological innovation, and promote industrial transformation and upgrading, so as to achieve high-quality economic development.
Promote structural optimization and upgradingEmphasizing the dual circulation, especially the domestic circulation, can promote a more rational allocation of resources to the real economy, scientific and technological innovation and green economy, and promote the transformation of the industrial structure to a more optimized and advanced form.
Improve people's livelihood and well-beingThe economic dual cycle can better meet the growing needs of the people for a better life and improve the people's sense of gain, happiness and security through the smooth domestic industrial chain and the first chain.
In general, the dual economic cycle will help China's economy maintain stable growth in a complex and volatile international environment, achieve a qualitative leap from large to strong, and further move towards a new journey of building a modern socialist country in an all-round way.
In recent years, due to the epidemic, war, some protectionism and other reasons, China's economic dual circulation strategy has also faced considerable challenges in practice. In practice, the main challenges or the dilemma of "dual circulation" may include the following:
Lack of scientific and technological innovationThe domestic cycle requires scientific and technological innovation as a support, but at present, China is still controlled by others in some key core technologies, which is a key obstacle to the formation of a domestic cycle as the main body.
The expansion of domestic demand is limitedExpanding domestic demand is an important part of the dual circulation strategy, but it is difficult to expand domestic demand due to factors such as residents' income level, social security system and consumption environment.
The stability of the industrial chainIn the current international environment, it is a challenge to ensure the stability and security of the industrial chain, which requires resource allocation and risk management on a global scale.
Balance of opennessHow to further expand opening up, attract international capital and technology, and promote international circulation while maintaining national and industrial policies is a problem that needs to be solved by the dual circulation strategy.
Regional development is unevenThe domestic cycle requires all regions to complement each other's advantages and develop in a coordinated manner, but at present, there is an obvious imbalance in regional development in China, which poses a challenge to the smooth operation of the dual circulation.
To overcome these predicaments, China needs to unswervingly promote supply-side structural reforms, improve total factor productivity, strengthen intellectual property protection, and promote scientific and technological innovation and industrial upgrading. At the same time, we will strengthen the counter-cyclical adjustment of macroeconomic policies, expand domestic demand, optimize the consumption environment, and improve residents' consumption capacity. In addition, deepening reform and opening up, improving the socialist market economy system, and improving the efficiency of resource allocation are also the keys to promoting dual circulation.
In short, the new development pattern of dual circulation is an important way for China's economy to move towards high-quality development, and only by facing and solving the dilemma in the dual circulation can China's economy sail steadily and far.