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Understanding 'dual circulation' and what it means for world

Xinhua | Updated: 2020-09-06 07:37
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Spill-over effect

Although the domestic circulation is anchored on meeting internal demand, deeper digging of China's super-large market, along with continuing opening-up efforts, will help lift the global economic recovery, Liu added.

While detailed policies of the "dual circulation" are yet to be fleshed out, authorities are already walking the talk for better connectivity of the two markets.

At the 15th meeting of the central committee for deepening overall reform on Sept 1, Chinese authorities emphasized the need to link the construction of a new development pattern with the implementation of a strategy for coordinated regional development and the construction of pilot free trade zones (FTZs).

Coordinated regional development strategies including western development and the revitalization of northeast China can help remove market barriers to ensure domestic circulation, while pilot FTZs serve as key platforms to connect the two markets.

China's pilot FTZs attracted robust foreign investment and trade in the first seven months of the year despite challenges from the COVID-19 pandemic, playing a positive role in stabilizing foreign trade and investment amid a sluggish international market.

The country's six pilot FTZs launched in August 2019 in the regions of Shandong, Jiangsu, Guangxi, Hebei, Yunnan and Heilongjiang, as well as Shanghai's Lingang Area, a new section of the Shanghai pilot FTZ, attracted 13.11 billion yuan (about 1.9 billion US dollars) of foreign investment during the January-July period, official data showed Wednesday.

The country will continue to pursue the high-quality development of the pilot FTZs and grant them more space to advance reform and opening-up so that they can take the lead in forming the dual circulation, said Tang Wenhong, an official from the Ministry of Commerce.

On Friday, the country announced that it will support Beijing in setting up a pilot FTZ and building a national comprehensive demonstration zone for expanding opening-up in the services sector.

China will also ease market access in the services sector and actively expand the imports of high-quality services.

When it comes to the discussion of dual circulation, Liu said, "In nature, the internal market remains an open market."

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