TIAN Xuan: ‘Focusing on Domestic Circulation’ Does Not Mean Closing Doors, But to Further Open-up

Time: 2020-08-12 12:13 Print


Recently, the concept of ‘dual-circulation’ is attracting much attention. The key to the concept of ‘dual-circulation’ is the reasonable understanding and construction. On one hand, ‘centring on domestic economic cycle’ does not mean to withdraw from international division of labour, or turning from China’s open-up strategy, but entering into a new level of open-up. In fact, China’s domestic circulation is absolutely not operating behind doors, but through reconstructing global industry chains and the layout of trade chains to make the global circulation better serves the domestic circulation. On the other hand, ‘domestic market advantages’ should not be translated as China’s market is large enough to take in all the production capacity of export-oriented enterprises, but to use the market to help enterprises go over the temporary difficulties, stabilize business function, and promote competitiveness.

The shock of the pandemic has stimulated the structural and systematic problems in China, while it will also push forward the reform and become the motive for innovation. The recent economic strategies in China reveals the stable prediction of micro-individuals, to achieve the expansion of consumption, which is key to China's economic development. Tian Xuan believes that, under the external uncertainties, it is consensus to expand domestic market demand. Consumption, as the stabilizer of domestic demand, is key to economic development. At present, there are about 600 million populations with monthly income under 1000 RMB, which shows large space for expansion of consumption. In the face of large potential market, it is a lasting effort to promote consumption. It does not mean one-sided buy and sell in the policy level, and cannot be realized in one instant. It should be supported by consumer's prediction of stable income. Thus, to ensure employment is one of the key elements to sustain social stability and promote domestic consumption.


How to show a country's economic inclusiveness and resilience in its mid-term/long term plan? Tian Xuan believes that, it is required to have a clear understanding of current situation to make an accurate recognition of future development goals. At present, the imbalance and inadequacy of China’s social economic development is revealed in three aspects. First is regional imbalance and inadequacy, where the average living standard and income is relatively low in some western regions. The second is the imbalance of the industry development. While e-business and fintech is taking the lead in the world market, some other industries are still far behind. The third is the imbalance of people’s income.

The current economy is still difficult and complex, with big instability and uncertainty. We must make plans for current situation, and also the long-term strategy. Tian Xuan thinks that, after 40 years of growth, China is facing the period of opportunity. China, at present, has confidence in its systematic advantages, and has a large market. It also has 40 years of infrastructure since opening-up as well as utilized industry and constantly improving business environment. These are all the progresses of 40 years’ opening-up, and also the basis and key for future development.