As a key park to undertake the policy of free trade port, Yazhouwan Science and Technology City in Sanya, Hainan will be built into a national deep-sea science and technology innovation center, a gathering place for deep integration of "Southern Silicon Valley" and Industry-University-Research City. The picture shows Nanshan Port, Yazhouwan Science and Technology City, Sanya. Xinhua News Agency reporter Yang Guanyu photo
The the Political Bureau of the Communist Party of China (CPC) Central Committee meeting held on July 30th pointed out that the current economic situation is still complicated and severe, with great instability and uncertainty. Many of the problems we encounter are medium and long-term, so we must understand them from the perspective of protracted war and accelerate the formation of a new development pattern with domestic macro-cycle as the main body and domestic and international dual-cycle promoting each other. This is a major strategic deployment made by the CPC Central Committee based on the situation at home and abroad.
The domestic and international double circulation is not internal and external, nor is it external and internal. The two are dialectical and unified, influencing, blending, promoting and complementing each other. To create a new development pattern, we must firmly grasp the "main body" of the domestic macro-cycle, give priority to ourselves, make better use of the domestic and international markets and resources, and constantly cultivate China’s new advantages in participating in international cooperation and competition.
Form a new development pattern of double circulation with domestic big circulation as the mainstay.
The COVID-19 epidemic broke out suddenly, the world economy suffered heavy losses, the global demand market shrank, and the international situation presented an unprecedented complex pattern. According to the latest World Economic Outlook Report issued by the International Monetary Fund, the global economy will shrink by 4.9% in 2020, including 8% in developed economies and 3% in emerging markets and developing economies. In this context, the proposal of China’s "double-cycle" strategic pattern has been closely concerned by all parties.
"We must realize that the’ double cycle’ strategy is not an expedient measure under the epidemic." Yao Jingyuan, a special researcher in the State Council Counselor’s Office and former chief economist of the National Bureau of Statistics, said in an interview that accelerating the formation of a new development pattern with domestic macro-cycle as the main body and domestic and international dual-cycle promoting each other is a strategy of strengthening the country made by the CPC Central Committee based on the great changes that the world is experiencing in the past century, facing the contradictions and problems in the stage of China’s economic transformation to high-quality development, and combining its own advantages and characteristics.
Taking the domestic macro-cycle as the main body means making efforts to open up all links of domestic production, distribution, circulation and consumption, giving full play to the advantages of China’s ultra-large-scale market, and taking meeting domestic demand as the starting point and foothold of economic development; The domestic and international double cycles promote each other, emphasizing the domestic economic cycle does not mean closing the door, but by exerting the potential of domestic demand, the domestic market and the international market can be better connected and promoted.
What is the basis for China to form a new development pattern of "double circulation" with domestic big circulation as the main factor?
From the perspective of supply, after more than 40 years of reform and opening up, China has the most complete and largest industrial supply system, and it is the only country in the world with all industrial categories in the United Nations industrial classification. The competition in most industries in China is fierce, and enterprises can reap both economies of scale and competitive effects.
On the demand side, China has a huge market scale and is the most potential consumer market in the world.Yao Jingyuan calculated an account for the reporter: China has more than 100 million market players, more than 170 million talents with higher education or various professional skills, and a huge domestic demand market formed by 1.4 billion people, including more than 400 million middle-income groups. "At present, China’s consumption potential has yet to be released. If people’s income increases, the market demand will be even greater, and relying on domestic demand will strongly support the overall economic growth."
The super-large-scale market advantage shows that China’s economy has both potential and attraction.On the one hand, under the background of globalization, it can attract global superior resources and form production capacity in China to meet the domestic market demand; On the other hand, based on the domestic market demand, some products with obvious economies of scale can produce "home market effect" in China and produce export competitiveness, thus forming a new development pattern of "taking domestic big cycle as the main body and domestic and international double cycles promoting each other".
"The key to realizing such a new development pattern of’ double cycle’ based on domestic big cycle is to improve the quality of domestic economic supply and tap China’s consumption potential through supply-side structural reform." Huang Qunhui, director of the Institute of Economics of the Chinese Academy of Social Sciences, believes that it is necessary to exert efforts from the supply side, deepen the structural reform of the supply side, solve the technical "bottleneck" problem and institutional obstacles in China’s economic cycle through technological innovation and institutional innovation, and improve the quality of economic supply. At the same time, it is necessary to expand effective investment and promote consumption, with the focus on accelerating investment in new infrastructure, new urbanization and major projects, and actively introduce a series of consumption incentive programs for residents.
In Yao Jingyuan’s view, to establish a new development pattern, the most fundamental thing is to liberate the productive forces through reform. "First, we should further improve the market economic system, give full play to the decisive role of the market in allocating resources, so that capital, land, labor, technology and other factors can flow more freely and smoothly, let the market determine prices and prices reflect demand, and at the same time let competitors compete fairly and let the market survive the fittest. Second, we should take improving people’s livelihood as the foundation and strive to raise people’s income level. There is still huge room for us to expand consumption and improve the domestic consumer market. "
Gongshu District, Hangzhou City, Zhejiang Province, with the help of the advantages of live broadcast platform, helped huangping county, Guizhou Province, actively explored a new development model of "non-genetic inheritance+e-commerce live broadcast+poverty alleviation and agriculture development", and launched a special exhibition of Miao Yin commodities with the characteristics of "Phoenix coming out of the mountain and Miao Yin entering Hangzhou". The picture shows the live broadcast. Gu Yanshe
Expanding domestic demand has become a strategic basis.
Domestic demand is the basic driving force of China’s economic development. Expanding domestic demand is an inevitable requirement to meet the people’s growing needs for a better life. Firmly grasping the strategic base point of expanding domestic demand and fully stimulating China’s super-large-scale market advantage and domestic demand potential will effectively promote China’s economy to overcome difficulties and minimize the losses caused by the epidemic and the external environmental impact.
Since the outbreak, global trade has suffered heavy losses, and many foreign trade enterprises are in trouble. On June 22nd, the General Office of the State Council issued the Implementation Opinions on Supporting Export Products to Domestic Sales, which encouraged many foreign trade enterprises. Foreign trade enterprises not only try their best to stabilize the "basic disk" of foreign trade orders, but also begin to respond to the strong attraction from the domestic demand market.
For foreign trade enterprises that need to expand the domestic demand market, it is not easy to be "marketable". "Many companies have been making foreign trade orders for a long time, and they don’t understand the circulation mode of the domestic market. Some companies have heard of’ building explosions’, but they are very strange about how to do it; Some enterprises have done well in the international market and entered domestic supermarkets, but consumers are unfamiliar with its brand and have a weak desire to buy. " Li Jiangbo, deputy director of the Business Operation Department of Zhejiang Provincial Department of Commerce, believes that while encouraging foreign trade enterprises to independently expand sales channels, government departments should be good "guides" and give targeted guidance.
As a major foreign trade province, Zhejiang recently issued "Several Opinions on Promoting Foreign Trade Enterprises to Explore the Domestic Market", giving full play to its advantages in e-commerce resources, proposing to promote the transformation of foreign trade enterprises to online sales by means of webcasting, online celebrity delivery and other emerging ways, and at the same time supporting platforms such as Taochang, Netease YEATION, Lianhua Whale Selection and SF Optimization to deepen docking cooperation with industrial cluster enterprises in the province.
Since March, a caviar product named Kaluga has frequently appeared in live broadcast rooms and variety shows. This Chinese-made caviar comes from Hangzhou Qiandao Lake Sturgeon Technology Co., Ltd. Xia Yongtao, deputy general manager of the company, said that in 2019, Xiaolong Technology exported nearly 92 tons of caviar, accounting for about 35% of the global market share. In 2020, Xiaolong Technology plans to export 110 tons of caviar, but due to the epidemic, at present, this target has been lowered to about 87 tons.
According to reports, in February this year, there was a backlog of 3 tons of caviar in the warehouse. With the gradual recovery of the market in March, enterprises decided to "save themselves" through e-commerce live broadcast. The flagship store of Xiaolong Technology Tmall has become a starting point for revitalizing resources. The data shows that from January to May this year, the sales of e-commerce channels of Xiaolong Technology exceeded 7.2 million yuan, compared with 2.8 million yuan in the same period last year.
Under the epidemic situation, a general consensus is that foreign trade enterprises should seize the opportunity of strategic transformation of economic development, actively explore the domestic market and make full use of the two markets and resources.
Since the beginning of this year, affected by the epidemic, Tianjin Jinlun Bicycle Group, as a labor-intensive foreign trade enterprise, once struggled and even planned to close its overseas factories.
Jinlun Group has been deeply involved in overseas markets for many years, but Yang Yufeng, the general manager of the group, realized that it should pay attention to cultivating the domestic market. Jinlun Group established a "Bicycle Life Experience Hall" in Tianjin, and entered online sales in an all-round way. A few days ago, the data of Golden Wheel Group in the first half of the year was released, and the domestic sales reached more than 30 million yuan, almost twice that of last year.
Expanding domestic demand does not mean giving up foreign trade, and forming a large domestic market does not mean giving up international competition.While the domestic market is developing steadily, foreign trade enterprises are actively looking for changes, and with the help of new models and technologies, they are looking for opportunities in times of crisis to stabilize their foreign trade market.
Under the assistance policy of Tianjin wuqing district Municipal Government, Jinlun Group received more than 1 million yuan in water and electricity fee relief in the first quarter. The financing support of banks has solved the urgent needs of enterprises, and customs facilitation measures have also helped enterprises to reduce logistics costs and further help enterprises seize the international market.
With the gradual recovery of overseas bicycle market, Jinlun Group’s factory in Czech Republic is gradually returning to normal, and the intelligent adjustment booster and fall warning bicycles planned to be listed in August will also meet overseas consumers as scheduled. Not long ago, the Czech factory signed a new order for 100,000 bicycles with customers. "This shows that the market is restoring confidence." Hou Yunpeng, head of the Czech factory, said.
Scientific and technological innovation is an inexhaustible motive force to drive development. In order to unblock the blocking point that affects the domestic macro-cycle, we must tackle the weak links in the industrial chain and supply chain and break through the problem of "sticking the neck" of key technologies.
Qin Lei, general manager of Guangdong Huibo Robot Technology Co., Ltd. said that domestic robot companies have done quite well in robot design and algorithm, but the localization rate of hardware such as circuit boards, chips and controllers is still relatively low. "We began to explore the use of domestic chips as control screens last year. If it is successfully industrialized, it will greatly reduce production costs."
The door to China’s opening is getting bigger and bigger.
The development of China cannot be separated from the world, and the development of the world also needs China.
On June 1st, the Central Committee of the Communist Party of China and the State Council issued the "Overall Plan for the Construction of Hainan Free Trade Port". Hainan Free Trade Port, a special area that comprehensively deepened reform and experimented with the highest level of opening policy, officially entered the initial construction stage.
"The Master Plan for the Construction of Hainan Free Trade Port expresses China’s determination to promote globalization with practical actions in today’s complex and severe global trade environment." Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, believes that Hainan Free Trade Port strives to achieve the highest level of opening, which shows that China’s long-standing policy of all-round integration into the world economy will not waver, and China will continue to participate in the development of the world economy by continuously increasing its opening up.
On June 24, the negative list of foreign investment access in the 2020 edition of the National and Pilot Free Trade Zones was announced as scheduled. The number of items in the national list has been reduced from 40 in 2019 to 33, and the number of items in the Pilot Free Trade Zone has been reduced from 37 to 30, and China’s openness to foreign investment has been further improved.
"This revision has mainly improved the opening level of service industry, manufacturing industry and agriculture. As an important way to expand opening up, the negative list is getting shorter and shorter, which means that China is fully open in a wider scope, a wider field and a deeper level. " Zhang Jianping, deputy director of the Academic Committee of the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce and director of the Regional Economic Cooperation Research Center, said.
There are less than 100 days before the opening of the third China International Import Expo(CIIE). Against the background of the epidemic, this special China International Import Expo(CIIE) has fully demonstrated China’s role as a big country that insists on opening to the outside world and promotes the common development of the world. According to Sun Chenghai, deputy director of China International Import Expo Bureau, the participation enthusiasm of enterprises from all over the world in China International Import Expo(CIIE) has not diminished, and the participation area of contracted enterprises has reached the planned target. Among them, the contracted area of consumer goods, medical equipment, medical care and other exhibition areas of enterprise business exhibition has already exceeded the planned area, and the phenomenon of "one booth is hard to find" has reappeared. "The average exhibition area of the world’s top 500 and leading enterprises in the industry will increase by 14% compared with the second session. The larger exhibition area reflects the exhibitors’ full recognition of the China International Import Expo(CIIE) and China markets. " Sun Chenghai said.
"China International Import Expo(CIIE) is a’ reassuring’ and gives us strong confidence to continue to take root in the development of China." Zhang Xiao, senior global vice president and president of Greater China of Varian, said that during the epidemic period, companies still increased their investment in China, and the high-end linear accelerator production line exhibited at the second China International Import Expo(CIIE) officially landed in March this year, making Beijing the R&D and production base of Varian’s most complete product line in the world.
At the Zhejiang Fair not long ago, AstraZeneca, an international pharmaceutical giant, officially "settled down" in Xiacheng, Hangzhou, and signed the headquarters in eastern China. "In the early docking process, we were moved by the sincerity and service efficiency shown by the local government." Huang Bin, vice president of AstraZeneca China, said frankly. But what makes them more tempted is that as AstraZeneca’s second largest market in China, Zhejiang has contributed more than 2.5 billion yuan in sales to the company every year. "Such a huge market is what every foreign-funded enterprise wants to firmly grasp."
Foreign-funded enterprises have rushed to the domestic market, which has created opportunities for smoothing the "internal circulation" of the domestic industrial chain. Through the introduction of high-quality foreign capital, China’s leading industries have accelerated the strengthening of the chain and built a smoother "internal cycle".
During the period of China International Import Expo(CIIE) last year, the Sino-Italian helicopter project in Pinghu, Zhejiang Province, with a total investment of 12.8 billion yuan was officially started in Jiaxing. "Take the Pinghu project as an example, it is very important for the aerospace industry in Pinghu and even in Zhejiang." Gao Xiuling, director of the Foreign Investment Division of the Zhejiang Provincial Department of Commerce, said that the project supporting the construction of a navigable airport will help Zhejiang introduce supporting suppliers in the upstream and downstream of the industrial chain and related modern service industries.
"The healthy development of the domestic macro-cycle is conducive to China enterprises to participate in the international macro-cycle, and actively participating in international competition can also improve the competitiveness of enterprises in the domestic market. The mutual promotion of domestic and international double cycles can cultivate new advantages for China to participate in international cooperation and competition under the new situation. "Cui Fan, a professor at university of international business and economics Institute of International Economics and Trade, said that in this new stage, opening up should be comprehensive and in-depth. It is necessary to promote the deep integration of China’s economy and the world economy, and make the mutual promotion of the two cycles become the main feature of the new stage of opening up.
Taking the domestic macro-cycle as the main body and the domestic and international dual-cycle promoting each other, the key is to do our own thing well and give impetus to deepening reform and opening up.
(The original title is "Accelerating the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international double cycles promoting each other. How to understand it? ",editor Zheng Mengying)
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