OPINIONS Observer: China's 'dual circulation' policy to foster open economy on higher level with more opportunities


Observer: China's 'dual circulation' policy to foster open economy on higher level with more opportunities

By Xu Zheqi | People's Daily app

19:50, September 21, 2020


The latest official statistics show China's economic recovery accelerated in August, as retail sales rose for the first time this year by half a percent from a year ago, value-added industrial output climbed 5.6 percent, and exports by 9.5 percent.

This indicates a brighter economic prospect as well as prominent outcomes in China's efforts to coordinate epidemic containment and socio-economic development.

Some western media attributed China's recent economic recovery to its measures of enhancing domestic consumption, and even said that the new development strategy -"dual circulation"- is a sign that China is turning its back on the world.

This interpretation, however, is completely at odds with what the new policy is about.

The "dual circulation" development pattern, a concept first mentioned by Chinese President Xi Jinping in May, means a new development mode takes the domestic market as the mainstay, while letting domestic and foreign markets boost each other.

This dual-cycle development mode is never a closed domestic loop, but an open dual-cycle of domestic and international growth.

On various occasions, President Xi has reiterated the opening of the economy, drawing in foreign investment and treating foreign businesses equally.

Take the latest meeting to deepen China's overall reform. President Xi stressed the "dual circulation" development pattern, pointing out that China will continue to promote the innovative development of foreign trade, implement new development concepts, focus on building a new development pattern, enhance supply-side structural reforms and technological innovation, further promote trade facilitation and optimize the foreign trade environment.

It can clearly be seen that the formation of this new development pattern is a strategic decision made in accordance with China's development stage, environment and conditions.

"The Chinese economy has entered a new phase of development featuring a dual cycle. Fundamentally speaking, the basics of the dual-cycle development phase are built on two wheels. One is the Chinese domestic market and production factors, and the other is high-quality opening-up," said top Chinese economist Li Daokui, at a summit forum during the 2020 China International Fair for Trade in Services.

China will further tap into its domestic demand, expand opening-up, and share more of its development dividends with the world. With lower level of tariffs, shorter negative lists, more convenient market access and a more attractive business environment, China will foster an open economy on a higher level, providing more opportunities to the world.

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