China’s new economic strategy to rely on domestic market is not a closed-door policy, Beijing advisers say

China’s new economic strategy to rely on domestic market is not a closed-door policy, Beijing advisers say

China’s new economic strategy of “dual circulation” is focused on competition and opening up, and not intended to severe ties with other parts of the global economy, according to economists and government advisers.

The new economic strategy announced by President Xi Jinping two months ago intends for China to lean towards its domestic market for growth and technological advancements and is widely perceived as Beijing’s inward-looking response to a hostile outside world.

But while the process of economic liberalisation should be increased in preparation for a long-term technology and economic rivalry with the United States, the plan also includes lowering barriers for investors and a motivation to secure regional trade pacts, the economists and advisers said.

“The priority on domestic circulation has indicated the importance of supply-side structural reform to increase domestic competition and higher-level opening,” said Peng Wensheng, chief economist of China International Capital Corporation on Monday.

“Internally, we should have further deregulation, tear down market barriers and promote the reform of state-owned enterprises with the guideline of competitive neutrality.”