'Dual circulation' policy to boost global economic growth

China's strategic focus on strengthening self-sufficiency while deepening opening-up will build up its economic resilience and boost global economic growth, economists observed.People visit the renovated East Nanjing Road Walkway in east China's Shanghai, Sept. 12, 2020. [Photo/Xinhua]

Their analysis came following the country's recently strengthened commitment to establishing a "dual circulation" development pattern, in which domestic and foreign markets complement and reinforce one another, with the domestic market as the mainstay.

Dual circulation is seen as a strategic and win-win choice for China to reshape its international cooperation and new competitive edge, said renowned economist Justin Yifu Lin, honorary dean of the National School of Development at Peking University.

It does not mean the country will close its doors to the outside world. Instead, domestic circulation and international circulation will complement each other. A more open domestic market will thus do nothing but contribute to the world economy, said Lin.

He noted that dual circulation underlies the message of rebalancing the economy, moving from one driven by exports and investment toward one more focused on domestic demand.

In recent years, consumption growth has accounted for more than half of China's total growth, with the role of exports diminishing drastically, according to Lin.

Such a shift in orientation is in line with China's pursuit of high-quality development and high-level opening-up, and will offer a strong boost to global trade and the world economy, said Lin.

Analysts say that while China will continue its economic exchanges with other countries, its domestic market, as it grows, will naturally require more imports and facilitate foreign investors tapping into the domestic market.

Zhu Min, chairman of the National Institute of Financial Research at Tsinghua University, said China has proved to be an important engine of global economic growth as the world economy suffers from the impact of the COVID-19 pandemic.

China recorded 3.2 percent year-on-year growth in the second quarter, rebounding from a contraction of 6.8 percent in the first quarter and making it the first major economy to return to growth across the world, Zhu said, adding that this has highlighted the great resilience and vitality of the Chinese economy.

Indeed, the country's solid economic recovery from the COVID-19 epidemic can hardly be ignored. The latest data shows China's industrial output expanded at a faster pace in August, while retail sales, a main gauge of consumption, rose for the first time this year.

Other leading indicators, including the purchasing managers' index, electricity consumption and excavator sales, all pointed to further recovery in economic activities after the country brought the COVID-19 epidemic under control.

China continues to play a pivotal role in the world economy, and the long-term positive trend of the Chinese economy will not change, said Zhu. "China will make even greater contributions to the world economy."