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China's "dual circulation" development paradigm, a major strategy
championed by Chinese President Xi Jinping and featuring domestic and
overseas markets reinforcing each other with the domestic market as the
mainstay, is under the spotlight during the country's ongoing annual
"two sessions." The 14th Five-Year Plan (2021-2025), a draft outline of which has
been submitted to the country's top legislature and political advisory
body for deliberation and discussion, will further clarify how China
will implement the "dual circulation" strategy and achieve high-quality
development. Unleashing domestic demand is crucial to driving China's growth, but
this new development paradigm does not mean China will backpedal on its
opening-up, officials and experts have said. STRATEGIC DECISION In May 2020, the leadership of the Communist Party of China made a
strategic decision to foster a new development pattern where domestic
and foreign markets can boost each other, with the domestic market as
the mainstay. "Making the domestic market the mainstay does not mean we are
developing our economy with the door closed," Xi told a symposium of
entrepreneurs in July last year. By giving full play to the potential of
the domestic market, both domestic and foreign markets can be better
connected and utilized to realize robust and sustainable development, he
said. China will follow the new development philosophy, foster a new
development paradigm, and pursue high-quality development by staying
committed to deepening reform and opening wider to the world, Xi said
when delivering a speech via video at the third Paris Peace Forum in
2020. He stressed that China will also work with the rest of the
international community to keep the global industrial and supply chains
stable and to foster an open world economy. China on Friday unveiled a draft blueprint for economic and social
development over the next five years and clarified the long-range
objectives through the year 2035, setting policy priorities for a new
development stage that is crucial for the country to achieve socialist
modernization. The draft outline includes comprehensive and targeted measures
echoing China's new development philosophy, said Xin Ming, a professor
at the Party School of the CPC Central Committee (National Academy of
Governance). PARALLEL EMPHASIS Jochen Goller, chief of BMW Group Region China, said China's new
development pattern of "dual circulation" is an effective strategy
customized to the strength of the Chinese domestic market. "'Dual circulation' puts a parallel emphasis both on domestic and
international circulation. A high-level opening up certainly serves this
end, brings win-win outcomes both for Chinese and multinational
companies," he noted. Alexander Lomanov, deputy director at the Institute of World Economy
and International Relations of the Russian Academy of Sciences, said the
transition to the "dual circulation" model is an important stage in the
development of China's economic policy. "It has its own internal logic and the Chinese leadership has stressed the importance of domestic demand for years," he noted. WIN-WIN CHOICE Dual circulation is seen as a strategic and win-win choice for China
to reshape its international cooperation and new competitive edge, said
Justin Yifu Lin, former World Bank chief economist and honorary dean of
the National School of Development at Peking University. "China's economy has been deeply integrated into the global economy.
As China enters the new stage of development, its ties with the world
economy will get even closer," said Ji Zhiye, former head of China
Institutes of Contemporary International Relations who is also a member
of the National Committee of the Chinese People's Political Consultative
Conference. Ji said the international capitals are optimistic about the Chinese
market thanks to the country's business environment and economic
resilience. Zarko Obradovic, member of the Serbian parliament and president of
the Friendship Group with China, said China's new development pattern
featuring "dual circulation" would help the country take advantage of
the development of the domestic market and make China an ideal economic
partner. Boga Thura Manatsha, senior lecturer at the Department of History of
University of Botswana, said that China needs the world for its economy
to continue growing and the global economy also needs China to make a
sustained comeback. "It is basically a win-win scenario," he said, noting that as the
whole world, especially developing countries, has been hit hard by
COVID-19, China has a critical role to play in reviving the world
economy. Enditem
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