What does China’s ‘dual circulations’ development paradigm mean and how it can be achieved?

Abstract

ABSTRACT According to the law of economic development, the proportion of domestic circulation in a country’s economy increases with the growth of economic size and the enlargement of service industry, both caused by the rise of income. In the new development paradigm, the Chinese government puts forward the idea of “taking the domestic circulation as the mainstay”, which reflects this basic economic law. However, the policy of “making full use of the domestic and international markets and resources” is still equally important. Therefore, the new development pattern includes the idea of “the domestic circulation and international circulation reinforcing each other”. To implement the new development paradigm, the most important things are to tap the growth potential through structural reform, deepen reform to improve the efficiency of domestic circulation and deepen the opening up to make better use of international resources so as to promote development and raise income level.