Double circulation makes China a world market

ILLUSTRATION. Chinese President Xi Jinping is seen on a media center screen as he speaks at the opening ceremony of the Third China International Import Expo (CIIE) in Shanghai, China, Thursday (4/11/2020). REUTERS / Aly Song

Source: Channel News Asia | Editor: SS Kurniawan

KONTAN.CO.ID – BEIJING. President Xi Jinping is trying to assuage concerns the ruling Communist Party’s latest building strategy could hamper trade. And, promised China will open more widely and become a “world market”.

“The plan that calls on Chinese industry to pursue independence in technology and focus on domestic markets and suppliers will benefit the people of all countries,” Xi said in a speech delivered via video link while opening the China International Import Expo in Shanghai, Wednesday (4/11), as quoted Channel News Asia.

The strategy, titled “Double Circulation”, is part of the economic blueprint that the Chinese Communist Party announced last week for the next five years.

The strategy asks companies to focus on domestic consumers and technology sources or internal circulation, not exports and foreign suppliers or external circulation.

Also Read: Xi Jinping: China is vulnerable to all kinds of risks that increase significantly

China believes in opening up

The Communist Party last week called on China to become a self-sufficient “technology force” as a feud with Washington cuts off access to US components for makers of smartphones and other technology products.

The development plan has sparked complaints that Chinese vendors may be subsidized or protected from foreign competition in violation of Beijing’s free trade commitments.

“China will embrace the belief in opening up,” Xi said. “The dual circulation approach will make China a world market”.

Xi’s remarks were an attempt to deflect complaints about restrictions on foreign access to China’s burgeoning industry, by highlighting the developing country’s status as a market for imported goods.

Also Read: Xi Jinping: The Chinese nation will never tremble in the face of threats

China is the first major economy to start the struggle to recover from the novel coronavirus pandemic. Their retail sales edged above pre-pandemic levels in the third quarter of this year.

Beijing has announced market opening steps over the past three years, including ending restrictions on foreign ownership in auto manufacturing.

However, its trading partners complain Beijing restricted access to finance and other industries for two decades, after joining the World Trade Organization (WTO).

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