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Insight | Liu Qiao: 'Dual circulation' strategy is not closed economy

October 25, 2022

The implementation of China's "dual circulation" policy does not represent a move towards a closed economy, said Liu Qiao, a top economist, on Wednesday.

Aerial photo taken on Sept. 14, 2020 shows the view of downtown areas in Shenzhen, south China's Guangdong Province. (Photo: Xinhua)

On Sunday, President Xi Jinping delivered a report at the 20th National Congress of the Communist Party of China (CPC) held in Beijing. In a nearly two-hour address, Xi called for the rejuvenation of the Chinese nation on all fronts "through a Chinese path to modernization and accelerating creation of the 'dual circulation' development pattern."

Liu, dean of the Guanghua School of Management at Peking University, said one of the highlights of report is the interpretation of Chinese modernization, a term which appeared in a Party report for the first time.

"Worries of Chinese modernization or 'dual circulation' leading to a closed economy are a misinterpretation," Liu told the People's Daily. "A high quality, high-level opening up and deepening of reforms is the most important course China must take to realize modernization."

Zhao Chenxin, spokesperson for the National Development and Reform Commission, on Monday also refuted the idea that China is building a self-sufficient economy and pledged an unswerving effort toward opening up at a media briefing.

"Economic globalization is irreversible in the world today, and no country can pursue development behind closed doors," Zhao said. ”We will not change our commitment to opening up wider and a globalization that is inclusive and beneficial for all."

The foreign trade dependence of China has declined from more than 60 percent in 2006 to 34 percent in 2021. Liu said this trend reflects an economic rule likely to be seen amid the economic expansion of a major country like China.

"The reduction means more products produced and services provided are consumed by domestic consumers." Liu said. "Therefore, it's vital to establish a great market that is unified and highly-efficient at home."

Xi said in the report that China's gross domestic product has grown to 114 trillion yuan (about $17.7 trillion) from 54 trillion yuan in the past decade and accounts for 18.5 percent of the world economy.

"Choosing a closed development path would mean China is willing to cede more than 80 percent of the global market," Liu said. "It's a strategic choice unlikely for any modernizing country."

Resource: https://peoplesdaily.pdnews.cn/opinions/-dual-circulation-strategy-is-not-closed-economy-says-top-economist-liu-qiao-281905.html

By Li Bowen | People's Daily app

10:49, October 21, 2022