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Associate Professor of the National University of Singapore: China’s construction of a new development pattern will benefit the world economy.

Associate Professor of the National University of Singapore: China's construction of a new development pattern will benefit the world economy.

This is a container stored at the dock in the bonded port area of Qinzhou, Guangxi (drone photo) taken on November 19. ( Photo by Zhang Ailin, Xinhua News Agency)

Singapore, December 13 “The new development pattern of double circulation provides a new way of thinking and solutions in dealing with China’s relations with the world, which will certainly have a positive impact on world development.”

Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy of the National University of Singapore, said in a written interview with reporters a few days ago.

He said that China’s acceleration of the construction of a new development pattern with the domestic large circulation as the main body and the domestic and international double cycles to promote each other is a strategic change that China takes the initiative to make according to the changes in its own comparative advantages, and also responds to the new changes in the external environment in a timely manner.

Gu Qingyang said that after decades of development, China’s comparative advantage has fundamentally changed. The income and purchasing power of domestic residents have been greatly improved, forming a fast-growing middle-income group, and a relatively complete production system and enterprise development ecosystem have been built.

In order to adapt to the change of comparative advantage, it is necessary to adjust the export-oriented model in the past and pay attention to the balance between investment and consumption.

He believes that the new development pattern will play a positive role in establishing a relatively complete industrial chain and supply chain in China, meeting the increasing consumption demand in China and promoting consumption upgrading.” Shifting attention from meeting external needs to internal circulation and smooth industrial linkage will force the establishment of domestic innovation systems and ultimately achieve high-quality development.

Judging from the effect of economic growth, the establishment of a domestic circulation system can leave more value-added parts of the production, circulation and consumption cycle chain at home, which is more amplified by the multiplier effect than the export-oriented economic model.

Gu Qingyang said that the new development pattern will also have an important impact on the world. In the face of long-term severe external challenges, how China maintains economic stability and actively participates in globalization is of great significance to the development of the world economy.

The double cycle is conducive to China’s stability and response to the uncertainty of the international environment through a controllable domestic cycle. Opening up and globalization remain China’s best choices. By continuing to participate in the division of labor in the global industrial chain, the internal and external circulation can promote and complement each other, forming a multidimensional three-dimensional industrial chain and supply chain.

He stressed: “The double-cycle system is essentially a higher level of openness and higher quality of domestic development, and is by no means a closed country. Only when China is stable can it be conducive to world stability. China’s opening up to the outside world will benefit global development.

Gu Qingyang said that whether it is the domestic cycle or the international cycle, the improvement of China’s domestic demand is the key. Domestic demand is not only the source of profits of domestic enterprises and the main pull of the domestic cycle, but also promotes the international cycle.

At present and in the future, the consumption of end-products in developed countries such as the United States is weakening. Under such circumstances, boosting China’s domestic demand plays a pivotal role in the world economy.

“By participating in the world circulation system, China will open China’s domestic market, industrial chain and supply chain to the world, which will drive world economic growth and play a supporting and driving role in the recovery of the world economy in the post-epidemic era.” He said.

Gu Qingyang believes that on the one hand, China can continue to participate in the existing international economic circulation system, on the other hand, it can open up new international circulation channels through the construction of the Belt and Road Initiative and regional economic cooperation.I

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