Good market environment need of the hour

In a guideline document on the country’s economic and social development in the next five years and beyond, the top authorities said China should form a strong domestic market and adopt a “dual circulation” development pattern for building a high-standard domestic market system.

It shows that the authorities have realized the fundamental role of a powerful domestic market in the “dual circulation” economic system. Only by developing the domestic market can China further expand consumption, guide production and achieve high-quality development.

A strong domestic market is a typical feature of a major economy, given that economic development and social progress usually go hand-in-hand with domestic market prosperity. As the global economic and political environment undergoes profound changes, a strong domestic market not only provides guarantees against risks to the global economy but also serves to counter protectionism and unilateralism.

The world’s second-largest economy, China, is also the world’s second largest consumer of goods, thus having a solid domestic market base. With strong market demand potential, China will realize the organic combination of international and domestic market resources, and promote the transformation and upgrading of domestic industrial structure.

From a domestic perspective, with the continuous improvement in people’s living standards and domestic consumer demands becoming increasingly diversified, building a strong domestic market cannot only meet consumers’ demand for personalized goods, but also their demand for high-quality services and high-end technologies in the pursuit of a better life.

To make the “dual circulation” development pattern successful, China should build a strong domestic market that is not only large in size, but also fully open and well-regulated. The country should make continuous efforts to expand its market capacity to reduce dependence on the external market and enhance its ability to fend off external risks. China is developing a new type of industrialization, informatization, urbanization and agricultural modernization, which, along with the world’s largest middle-income group and ever-rising consumption demands, can expand its domestic market capacity.

A strong domestic market requires the establishment of a high-quality supply system. It also requires the establishment of a set of sound institutional, legal and policy systems to raise market efficiency, reduce enterprises’ burden and lower their transaction costs. A good market environment is also needed to raise enterprises’ operation quality, improve consumption quality, expand domestic demand, and improve the level of consumption.