Don’t misunderstand the “domestic cycle” as self-sufficiency and self-digestion
Column
"The new development pattern is by no means a closed domestic cycle, but an open domestic and international double cycle", which virtually refutes the argument of "self-sufficiency and self-digestion".
On August 24, General Secretary Xi Jinping pointed out at a symposium of experts in the economic and social fields hosted by Zhongnanhai that it is necessary to promote the formation of a new development pattern in which domestic and international cycles are the mainstay and the domestic and international dual cycles promote each other. This new development pattern was proposed in accordance with the changes in my country's development stage, environment, and conditions. It is a strategic choice to reshape my country's new advantages in international cooperation and competition. He particularly emphasized that the new development pattern is by no means a closed domestic cycle, but an open domestic and international double cycle.
Some people have a one-sided understanding of "mainly the domestic cycle"
In the recent period, great changes have taken place in the international and domestic environment of my country's economic and social development. The global pandemic of the new crown pneumonia epidemic has not only severely impacted domestic supply and demand, but also caused a temporary interruption and readjustment trend in the global supply chain.
In particular, international trade protectionism has not bowed its head due to the epidemic, but has intensified under the instigation of individual countries. The concept of the "double cycle" new development pattern was put forward under this complicated background.
It is worth noting that since the "double cycle" concept was put forward, some people have misunderstood the concept.
One of the most typical is the one-sided understanding of the phrase "domestic cycle as the main body", while ignoring the key point of "domestic and international dual cycles mutually promoting each other"-in their interpretation, "internal cycle" means Self-sufficiency and self-digestion, no external circulation.
The main reason for this misunderstanding is probably the temporary supply chain interruption caused by the global pandemic of the new crown pneumonia epidemic and the reality that trade protectionism has sometimes risen.
There is no doubt that insisting on focusing on the domestic cycle is not only based on the basic principles that China must adhere to as a large country, but also based on the basic national conditions of China's sufficient domestic demand and huge potential.
China cannot do without the world, and the world cannot do without China
But focusing on the domestic cycle does not contradict the international cycle. In fact, the two are not contradictory, but an indivisible organic whole that promotes, merges and complements each other.
Judging from the reality, over the past 40 years of reform and opening up, China's economy has been deeply integrated with the world economy. At present, my country has trade relations with almost all countries in the world. The total foreign trade in 2019 exceeded 31 trillion yuan, accounting for about 35% of GDP. Whether it is the volume of foreign trade or the scale of attracting foreign investment, China is at the forefront of the world.
Not only that, foreign trade has also provided our country with more than 100 million jobs and created a large amount of fiscal revenue. The many benefits it brings are reflected in all aspects of national economic development.
And China's development has also brought many benefits to the world. Today, China's growth has contributed one-third of the world's economic growth, and it has also created a large number of employment opportunities, fiscal revenues and development opportunities for trading countries.
Even in the context of the rapid increase of uncertainties in the current international economy, China’s international cycle has remained basically unimpeded-although it has been disrupted or even destroyed by various kinds, China’s determination to further open up has not shake.
Statistics released by the customs show that although my country's foreign trade has experienced a 3.2% year-on-year decline in the first half of this year, the decline has gradually narrowed. In the first half of the year, many foreign-funded enterprises continued to expand their investment in China, with 320 large foreign-funded projects with an investment of more than US$100 million.
Facts fully show that China cannot do without the world, and the world cannot do without China. Adhering to the domestic cycle is to insist on taking the initiative to deal with the new changes in the domestic and international environment; to adhere to the domestic and international double cycle is to adhere to the development concept of common development and accelerate the formation of a community with a shared future for mankind. The two are dialectical and indivisible unity.
Therefore, promoting the formation of a new development pattern based on the domestic big cycle and the mutual promotion of the domestic and international double cycles is not only to create a more favorable development environment for China, but also an important strategic measure to accelerate the formation of a new international economic order as soon as possible. To misread it as a refusal to open to the outside world and relying solely on self-sufficiency is obviously a misunderstanding.
□Li Changan (Professor of the National Institute of Opening-up, University of International Business and Economics)