Yu Miaojie: China’s “dual circulation” development pattern amid changing China-US relations

Peking: On October 15, Professor Yu Miaojie from the National School of Development at Peking University talked about how Chinese economy can open a new chapter amid the unprecedented changes and the once-in-a-century coronavirus pandemic. He pointed out that we need to take full advantage of the “dual circulation” development pattern for China’s economic growth.

Yu began by elaborating on the background of the “dual circulation” development pattern. The world today is in the midst of great changes that have not been seen in a century. Given the circumstances, boosting China’s economy through the “dual circulation” development pattern has become an urgent task.

Moreover, Yu made an introduction to China’s strength in adopting the “dual circulation” development pattern. China has deeply integrated into global value chains but there is still room for improvement. As the only country with a full range of industrial sectors listed by the United Nation’s International Standard Industrial Classification (ISIC), China enjoys a vast market and a complete industrial chain. Besides, China’s industrial agglomeration chain is conducive to professional specialization. Enterprises also enjoy the benefits of lower transaction costs, mainly manifested as a friendlier business environment, lower labor costs, shorter distance to market, and so on.

Yu also offered his insights on how to better implement the “dual circulation” development pattern. To improve the domestic economic circulation, we need to “open up internally” and promote factor marketization, trade liberalization, investment facilitation, etc. To stimulate the external economic circulation, we need to strengthen multilateral systems, including giving impetus to the implementation of the Belt and Road Initiative, developing regional economic partnerships, and so on. China is now in an important period of strategic opportunities, so it is important to set a targeted goal and follow the trend of the times.