China News Service, Beijing, December 5 (Reporter Liu Liang) Tang Min, academic committee member of the International Finance Forum (IFF) and Counselor of the State Council of China, said on the 4th when attending the 18th Global Annual Meeting of the International Finance Forum that the “double cycle” proposed in China "Under the new development pattern, there are three specific starting points worthy of attention.

　　The first is to transfer the industrial chain and supply chain of production and daily necessities to the underdeveloped areas in the west.

He pointed out that the industrial chains for the production and daily necessities are mostly labor-intensive products, which are being transferred abroad in large numbers.

Instead of transferring these industries abroad, it is better to transfer them to the underdeveloped areas in western China.

At present, the western region has three main advantages, including that there is still some labor available. At the same time, doing so can also reduce the transportation and accommodation costs of the western labor force due to travel to work. The goods manufactured in the western region can also save transportation costs through the China-Europe Express train. .

　　The second is to make full use of cross-border e-commerce and new retail models to further open up the international market.

He pointed out that although some people believe that the traditional supply chain is now in the hands of large foreign companies, in fact, China can also turn passive into active through innovative sales models.

In particular, it can make full use of the current new cross-border e-commerce, Internet celebrity delivery and other new retail and new models to open up new hopes for China's manufacturing.

　　The third is to focus on the large market of 1 billion low- and middle-income people.

He pointed out that China currently has a middle-class market of 400 million, but after removing this group, there is still a market of 1 billion low- and middle-income groups.

In his view, the market of 1 billion low- and middle-income people still has huge development potential. In the next 15 years, a relatively part of the people will become the middle class, and the market space is huge.

In order to fully exploit the consumption potential of this part of the group, the key is to provide good products and the right products to realize the civilianization of products and services.

　　How can we realize the civilianization of products and services? He believes that there are two key points.

One is to remove unnecessary functions in existing products and services to greatly reduce product costs.

The second is to target the pain points and rigid needs of low-income people, and add these factors to the product.

In particular, some products can be specially designed for rural market groups.

In his view, if these markets are done well and accounted for, there is also great potential for development.

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