[new theory of practice] the new development pattern is an open domestic and international dual cycle

 [new theory of practice] the new development pattern is an open domestic and international dual cycle

On the afternoon of August 24th, general secretary Xi Jinping chaired an Expert Symposium on economic and social fields. In the forum of benefit by mutual discussion, general secretary Xi Jinping pointed out that during the 14th Five-Year period, China should build a new pattern of development by opening the national economic cycle. He further stressed that the new development pattern is not a closed domestic cycle, but an open domestic and international dual cycle. Chinas position in the world economy will continue to rise, and it will be more closely linked with the world economy. It will provide broader market opportunities for other countries and become a huge gravitational field to attract international commodities and factor resources.

It is a major revision of Chinas long-term economic development strategy to build a new development pattern of domestic and international dual circulation, which is based on the smooth circulation of national economy. There are some doubts in the society about the revision of such a strategy. Some people think that the emphasis on domestic circulation is that international circulation is not important, and that it is necessary to go back to the old road of independent and closed circulation. More people worry that if Chinas domestic demand is not expanded effectively, the existing huge production capacity can not be digested and absorbed in the absence of international circulation, which will lead to economic recession, employment difficulties and income reduction.

In fact, as general secretary Xi Jinping has repeatedly stressed in his recent series of speeches, the new development pattern to be formed in the strategic objectives is mainly to amend the market gravity center that depends on Chinas economic development instead of going through a closed door plan. As we all know, Chinas strategy of participating in economic globalization in the past few decades is to use comparative advantage to enter the global value chain dominated by multinational companies in developed countries to carry out international OEM. The main feature of this strategy is to make use of other peoples market rather than our own market: raw materials, machinery and equipment and technology are obtained from abroad, and then processed and assembled in China, and the finished products are transported to developed countries. As the input and output markets are outside, the market focus linking Chinas national economic cycle is abroad. The main reason why we want to use other peoples market rather than our own market is that our countrys economic development level was low in the past, our own market capacity was too small and underdeveloped, and the market function was incomplete. We call this kind of economic globalization by using the western market as away globalization. In the international environment of peace and development, China has made huge dividends by relying on this mode of globalization.

However, from the perspective of the development of big countries, away game globalization is a strategy that can not be sustained for a long time. There are many problems, mainly including the following: first, it is easy to rely on the market and technology of western countries, resulting in the undesirable characteristics of dependent economy, which is a very dangerous development pattern for the economy of large countries. Especially when the international environment changes greatly, it is easy to make the national development lose its independence and autonomy; second, with the improvement of the development level, away from home is the key to the development of the country The globalization model tends to make insufficient use of its own development resources, especially the important competitive advantage of its gradually growing market capacity; the third is to make use of other peoples market, which is easy to be thought to damage other peoples industrial base and lead to serious trade and economic friction; fourth, to make progress for others for a long time It is difficult to cultivate independent brand and technology and obtain high value-added in the competition by undertaking international OEM and receiving R & D and designed orders from other countries. With the impact and novel coronavirus pneumonia and the new crown pneumonia epidemic, the last away from home globalization has come to an end.

During the period of the 14th five year plan, we should upgrade the economic globalization with export as the main feature in the away field as soon as possible to the strategic mode of home globalization with the main feature of taking advantage of Chinas huge domestic demand. In short, it is to make our domestic demand open to all countries in the world, and turn our market into a global market and a magnetic field siphoning advanced global production factors. The world market or global market is not a geographical concept, not divided by regions, but an open or not concept: your market is only open to your own country, that is, the domestic market. If it is open to all countries in the world, it is the global market. In this way, first, domestic demand has become the tool, resource and means for China to realize the strategic transformation of home court globalization; second, after Chinas market has become a global market, a new round of globalization will be carried out in our home court, and the opening of domestic demand market is a greater opening to the outside world; third, domestic demand can be used to promote external demand, that is, on the one hand, domestic demand can be used to siphon the worlds advanced production factors On the other hand, relying on the huge domestic demand, we can realize the advantages of scale economy and differentiation, and encourage Chinese enterprises to go out, go up and go in.

This new development pattern of dual cycle is obviously not to do without foreign markets, let alone to engage in self-economic cycle, but to allow the open domestic market to play a decisive role in resource allocation and economic growth, and to change the forms, methods and ways of Chinas participation in international industrial competition. It is not only necessary to replace two ends in the world and great progress with an open domestic market system cycle In addition, we should link the domestic market with the international market, and promote and drive domestic enterprises to participate in the international market cycle with the open domestic market. Obviously, this is a completely different development strategy from away game globalization. The specific performance is as follows: first, with the promotion of Chinas global market position, it will become a new trend to come to China to earn money, start an undertaking and innovate, and Chinas position in the world economy will continue to rise; second, the trend of Chinas market and the fluctuation of demand will greatly affect or even determine the trend of the world market, so Chinas relationship with the world economy will be more closely; third, with the development of Chinas economy, Chinas position in the world economy will continue to rise With the continuous development of Chinas market potential and the continuous expansion of the actual market scale, China will provide more market opportunities for other countries; fourth, Chinas market will become a tool and place for other countries economic growth, so it will also become a huge gravitational field to attract international commodities and factor resources.

The significance of promoting economic globalization at home lies in: firstly, it helps to aggregate the administrative region economy in Chinas fragmented state into an open regional economy, and to transform the scattered and narrow regional market into a large-scale unified and open domestic market; secondly, it transforms the use of other peoples market into the use of our own market, which fundamentally changes Chinas economic globalization Third, the formation of domestic open market is conducive to siphoning the global advanced innovation elements. If we can create some platforms to absorb advanced global production factors, such as global livable cities to absorb advanced high-tech talents, it will greatly promote the formation of innovation and development pattern, which is conducive to the realization of industrial chain climbing to the middle and high-end and high-quality economic development.

In fact, even if there is a huge change in Chinas economic strategy from globalization to globalization, Chinas autonomous economic environment has not changed. On the one hand, there is no country in the world that can accommodate the long-term export of Chinas huge production capacity, and it is impossible to completely leave its own industries in the fierce competition of cheap Chinese products for a long time. Chinas economy is gradually returning to the form of global economy based on domestic demand. It is only in accordance with the requirements of economic law that China automatically corrects the deviation of its economic system operation and single unsustainable economic behavior. On the other hand, over the past decade, with the continuous expansion of economic scale and the continuous rise of per capita income, the degree of dependence on foreign countries of Chinas national economy has slowly declined from more than 60% in the highest years to about 30%. Moreover, this index is still decreasing in these years, while the proportion of domestic final consumption demand is rising.

From the perspective of international experience, the experience of world economic development proves that in the process of becoming a big country economy, the formation of domestic demand oriented economy is inevitable. At present, the developed countries with large global population and market size basically belong to this kind of domestic demand led economic form. The most typical example is the United States. The United States is a typical global economic system based on domestic demand. First, the high income level of American people and the large population imposed by purchasing power make the final demand scale of the United States always in the largest position in the world, and it is also the main condition for the managers of market driven global value chain; second, the strong domestic market demand and other non economic factors shape the long-term strong position of the US dollar and induce global production The flow of factors to the United States has led to a large number of exports from other countries pursuing export-oriented strategies, so that the United States can obtain long-term low-cost elements and products; third, because of its huge domestic market and strong attraction, the United States has many opportunities for success, and it is also the country with the largest absorption of various global elements, especially advanced innovation elements. For example, the United States is developing rapidly Among the developed countries, the country that absorbs the most FDI is also the country with the highest concentration of top talents in the world. It must be pointed out that the United States is a country dominated by domestic demand, and it can not be denied that it is still the country with the highest comprehensive openness in the world.

Therefore, it is absolutely necessary and possible for Chinas globalization strategy to shift from the away game to the home court. The new development pattern of domestic and international dual cycle, which is mainly constructed by unblocking the national economic cycle, is bound to be the new development pattern of open domestic and international dual cycle. It will not only comprehensively improve Chinas comprehensive opening degree in the world, but also make Chinas development mode more easily recognized and accepted by all countries in the world, and become an important part of the organic operation mechanism for building a community of shared future for mankind part.