Observation on unblocking domestic circulation under the new development pattern

2022-04-26

The epidemic situation in the 21st century and the changes in the past century are intertwined, economic globalization has encountered a countercurrent, the pattern of international economic cycle has been deeply adjusted, and China's economic development situation has attracted attention. Based on China, expanding domestic demand, unblocking circulation and strengthening the market have become the inevitable choice for China to pursue sustainable development under more complex and changeable environmental conditions. "We must give full play to the advantages of domestic super large-scale market" 34.8%! This is China's dependence on foreign trade in the first quarter of this year, which reached 67% more than a decade ago. In sharp contrast to this downward trend, since the international financial crisis in 2008, the contribution rate of domestic demand to China's economic growth has remained high, even more than 100% for seven years. The growth of domestic demand has effectively made up for the decline of foreign demand. In recent years, globalization has encountered a countercurrent and unilateralism and protectionism have spread. In 2022, the global epidemic continued, and the conflict between Russia and Ukraine accelerated the change of the world pattern. "Never before in history has so many countries experienced economic recessions at the same time, suffering from the loss of capital, jobs and livelihoods." World Bank President marpas is deeply worried about the current situation of "overlapping global crises". "We expect global economic growth to decline further in 2022 and 2023." International Monetary Fund President Georgieva said. Recently, the organization lowered its global economic growth forecast this year to 3.6%. Facing the challenges of the external environment, how can China, which is deeply integrated into the world, take the road of sustainable development? "Facing the future, we should gradually form a new development pattern with domestic circulation as the main body and domestic and international double circulation promoting each other." "We must give full play to the advantages of the domestic super large-scale market, add impetus to China's economic development and drive the recovery of the world economy by prospering the domestic economy and unblocking the domestic cycle." This is not only China's response to changes in the international situation, but also a strategic choice to grasp the initiative of development. "Taking the domestic circulation as the main body is the reflection of the basic law of economic development." Lin Yifu, President of the Institute of new structural economics of Peking University, believes that the larger the country's economic volume, the higher the proportion of domestic circulation. Historical data show that the characteristics of the economies of large countries are dominated by domestic demand and internally recyclable. As the world's second largest economy and the largest manufacturing country, the relationship between domestic economic cycle and international economic cycle is also continuously adjusted. According to the data, the proportion of exports in China's total economy has decreased from 35.4% in 2006 to 17.4% in 2019. "We can't wait for the market to change. We should take the initiative and respond actively." Although the company's foreign trade market has been booming, with the increase of uncontrollable factors, Zhejiang Hualong JuShui Technology Co., Ltd., mainly engaged in valve R & D and production, began to strategically expand the domestic market. "The transfer of exports to domestic sales is not a simple change of market. The key is to have good products." Sun Qibin, deputy general manager of foreign affairs of Hualong JuShui, said that under the layout of domestic and international double circulation and the integration of domestic and foreign trade, the production of enterprises increased against the trend, and the domestic sales in the first quarter increased by 11.2% year-on-year. Putting the foothold of development at home, unblocking the domestic cycle and expanding and strengthening the domestic market is not only conducive to resolving the impact of external shocks and the decline in foreign demand, but also conducive to ensuring the basic normal operation of China's economy and the overall stability of the overall social situation under extreme circumstances. Connect "supply" and "demand" to smooth the virtuous cycle of economy 3.3% - this is the growth rate of total retail sales of social consumer goods in the first quarter of this year. In the first two months, this figure reached 6.7%, a new high since August last year. However, due to the frequent occurrence of domestic epidemics, there was a negative growth in March. To smooth the domestic circulation, the key is to connect supply and demand. Under the epidemic, the growth rate of investment and consumption is weak, and the blocking points of industrial chain and supply chain are prominent. How to expand effective supply and stabilize the basic domestic demand? The total grain output has exceeded 1.3 trillion Jin for seven consecutive years, and the output of more than 220 kinds of industrial products ranks first in the world... China has formed a strong production and supply capacity, which is a solid foundation for a virtuous cycle of China's economy. With more than 1.4 billion people and more than 400 million middle-income groups, the super large market has always been the foundation for China's economic development and resisting external risks. Unblocking the industrial chain and the supply chain and releasing the supply capacity are the key to the development of the supply side. Build an online supply and demand docking platform for automotive chips, and guide vehicle and parts enterprises to optimize the layout of the industrial chain... In view of the "lack of core" and other problems in the automotive industry, relevant departments have issued a number of measures. In the first quarter, the production and sales of new energy vehicles exceeded 1.2 million, with a year-on-year increase of 1.4 times. Improving supply level through innovation, making products more marketable, and stimulating demand through effective supply are the direction of the supply side. Reduce crude steel production capacity and lay out advanced manufacturing industries such as high-end equipment, automobile and new materials; A total of 1.559 million 5g base stations have been built and opened, more than 2400 "5g + industrial Internet" projects are under construction, and the "digital intelligence" transformation of the manufacturing industry is "accelerating"... A series of measures take the supply side structural reform as the main line to make the "skeleton" of Chinese manufacturing stronger and promote supply to high quality. "In the past two years, there have been many 'talking' appliances at home!" Pan Jun, a resident of Zhaojia Town, Zhuji City, Shaoxing, Zhejiang Province, said that smart speakers, floor sweeping robots and home cinemas have become "good hearts" of many villagers. "The escalating consumer demand is accelerating the reform of the supply side, and more marketable goods will further release the potential of domestic demand." Wang Yun, a researcher at the China Macroeconomic Research Institute, said. Since the beginning of the year, China's consumer market has generally maintained a recovery and development trend, but the recent local epidemic has many points, a wide range and frequent, putting pressure on the warmer consumption again. Encourage mass consumption of automobiles and household appliances; Strengthen the construction of supporting facilities such as community elderly care and childcare; Develop rural e-commerce and express logistics distribution... In view of the lack of consumption, the new promotion policies have been accelerated. In Beijing, an activity to promote green energy-saving consumption has just started. Consumers can receive green energy-saving consumption vouchers and buy 20 categories of goods such as air conditioners; In Chongqing, 19 consumption promotion measures reach the grass-roots level From the current point of view, stimulating consumption policy is a powerful starting point. In the long run, the core of expanding consumer demand is to increase the income of consumers. "The total economic output and the per capita income of urban and rural residents will reach a new level" and "the middle-income group will expand significantly" have been written into the 14th five year plan and the outline of long-term goals for 2035. Expanding effective investment is another important driving force for expanding domestic demand and steady growth. The year-on-year growth rate of national fixed asset investment accelerated to 9.3%, and 86% of the amount of special bonds issued in advance has been completed... In the first quarter, macro policies continued to exert force, transmitting a positive signal of steady growth of investment. "Giving full play to the traction of major projects and the leveraging role of government investment will promote the improvement of supply and create new growth points of consumption, which is conducive to the further release of the potential of the domestic market." Zhang Liqun, researcher of the Macroeconomic Research Department of the development research center of the State Council, said. Solve the blocking point and sticking point to make the flow of elements more smooth On April 10, a heavy document related to the national economic cycle appeared. The opinions of the CPC Central Committee and the State Council on accelerating the construction of a national unified market puts forward that "accelerate the construction of an efficient, standardized, fair competition and fully open national unified market, comprehensively promote the transformation of China's market from large to strong, and provide strong support for the construction of a high-standard market system and a high-level socialist market economic system." For a long time, although the Chinese market is large, it is "large but not strong": there are hidden barriers to the free flow of commodity elements, the construction of rules and standard system needs to be further unified, and the phenomenon of local protection still exists "This makes it impossible for China to give full play to its competitive advantage in the super large-scale market." Liu Zhibiao, President of Changjiang Industrial Economics Research Institute of Nanjing University, said that under the background of building a new development pattern and unblocking the domestic circulation, it is urgent to form a unified market. To form a unified market, we should create a fairer competitive environment. "A national list", insist on treating all kinds of market subjects equally, improve the system of equal protection of economic property rights of all kinds of ownership according to law... A series of measures will continue to stimulate the vitality of market subjects. "China has continuously strengthened its anti-monopoly and anti unfair competition law enforcement forces and strengthened the protection of the original innovation of innovative small and medium-sized enterprises, which makes enterprises focus more on innovation and creation." Said Cao Jun, chairman of Xi'an Xidian Jietong Wireless Network Communication Co., Ltd. To form a unified market, there should be unified standards and norms. At the beginning of this year, the opinions on promoting the integrated development of domestic and foreign trade and the plan for the construction of modern circulation system in the 14th five year plan were published. The construction of standards is one of the key points. "Let the rules come first and lay the cornerstone of market development; let the facilities be interconnected and improve the efficiency of market operation; let the standards be continuously improved and provide higher quality goods and services." Dong Yu, executive vice president of China Development Planning Research Institute of Tsinghua University, said. To form a unified market, we should "smooth the flow of goods". It has built the world's largest high-speed railway network and expressway network, with a world-class port group, more than 240 civil transport airports, express network and township network coverage of 98%. In recent years, the construction of China's transportation and logistics system has "accelerated". Logistics is related to the national economy and the people's livelihood. Since March, the domestic epidemic has occurred frequently, the smooth flow of people and logistics has been affected, and a large number of living and production materials have been "trapped" on the road. The highway bears more than 70% of the freight and passenger volume of the whole society. It is urgent to dredge the "intestinal obstruction" of transportation. It is not allowed to restrict the passage on the grounds of waiting for the nucleic acid test results, issue and use a sufficient number of national unified passes, tackle key problems one by one, and solve the prominent problems in key areas... On April 18, a teleconference was held in Beijing, and the Ministry deployed 10 measures to ensure the smooth flow of logistics and promote the stability of industrial chain and supply chain. Many departments also issued a notice to prohibit unauthorized blocking or closing of highways to ensure smooth freight logistics. At present, the problem of poor logistics in China is alleviating. What kind of big market to build will, to a large extent, determine the future face of China's economy. —— Since October 1 this year, the general principles for the construction of high standard farmland have been officially implemented to provide the latest unified national standards for the construction of high standard farmland; —— By the end of this year, the electronic license sharing service system of the national integrated government service platform will be basically completed; —— By 2025, the national unified power market system will be preliminarily completed, and the national market will operate in coordination with the provincial (District, city) / regional market; …… Only by dismantling the "roadblocks", clearing the "barriers" and opening up the blocking points, can the domestic market be effectively connected and form a benign interaction of mutual promotion of supply and demand and simultaneous production and marketing, so as to give better play to the great advantages of China's market resources and comprehensively promote the development of China's market from large to strong. Strive for strategic initiative in opening up and development Once upon a time, the outside world had doubts about whether unblocking the domestic circulation meant China's opening-up policy

Edit:He Chuanning    Responsible editor:Su Suiyue

Source:Xinhua

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