Tourists shop at a duty-free shopping mall in Sanya, South China's Hainan province, on March 12, 2020. (Photo: Xinhua)

To better uphold the new dual-circulation development pattern, which takes the domestic market as the mainstay while letting foreign and domestic markets reinforce each other, China must gradually transform its investment-based internal cycle into one that is consumption-based, according to Chen Deming, former minister of commerce and president of the China Association of Enterprises with Foreign Investment.

For that purpose, China must repair consumption power, reduce the unemployment rate, diminish the mortality rate of enterprises and maintain basic stability in the balance of payments, he said.

Chen made the remarks on Friday at the 7th China and Globalization Forum 2021 in Beijing, organized by the Center for China and Globalization and being held from July 20 to 30.

Also honorary chairman of the CCG, Chen said the expansion of imports can meet domestic demand for production expansion and consumption stimulation, adding the nation also needs to beef up exports and maintain sufficient foreign exchange.

Currently, China's export earnings, especially that from exports of mechanical and electrical products, are mainly made by foreign-funded enterprises and Taiwan-funded enterprises. Therefore, continuously opening up to the rest of the world, shortening the negative list for foreign investment and especially expanding the opening-up of the service trade are expected to be long-term policies in China, he said.

According to Zhu Guangyao, former vice-minister of finance and an advisor to CCG, China has taken the lead in controlling COVID-19 to realize economic recovery, making a great contribution to stabilizing global supply chain. This also demonstrates the resilience of Chinese economy and its ties to the world economy, he said.