Optimizing the Path of Development

The downward trend of the global economy has been obvious since the beginning of 2020， due to the impacts of the COVID-19 pandemic. The IMF forecasts that it will probably shrink by 3 percent by the end of the year.

China is determined to mitigate this trend through vision and innovation. With 30 percent of its GDP growth largely dependent on foreign trade in the past， China now carves out a new development pattern for economic development in which domestic and global markets can boost each other.

In fact， new consumption trends such as those related to fashion， customized products and services， information， and the AI field have been popping up across the country along with the sustained growing demand in areas like health care， nursing， medical care， culture， education， and security. All this has made consumption the primary driving force for Chinas economic growth over the past years.

Most recently， the latest mode of online consumption has become popular since the outbreak of the pandemic. China has a gigantic market and is now bracing for an expansion in consumption， which has been an impetus for Chinas economic growth and also the ultimate goal to improve its peoples livelihood.

China has the worlds largest and also most comprehensive industrial system. It is now in the midst of a new round of industrialization， urbanization， agricultural modernization， and informatization， bringing huge demands for investment. To further unleash market vitality， facilitate its function in market regulation， and increase investment efficiency， the Chinese government recently issued The Guiding Opinions for Building a More Complete System and Mechanism for Market-based Allocation of Factors to speed up the marketization of land， promote the rational flow of labor， improve the multi-level， open capital market， boost the technology market， cultivate and develop the data market， and advance the market-oriented reform on prices of these production factors. Through a series of reform measures， an institutional foundation will be solidly reinforced for domestic economy.

As economic globalization is impaired by the raging COVID-19 pandemic and trade protectionism， China needs to gradually shift its reliance on the traditional international economic circular mode， and effect the transition from the opening-up only of commodities and production factors liquidity to the opening-up at a deeper level in regards to institutions and mechanisms. Therefore， China will continue to enhance its business environment and attract more inbound foreign investment and human talents. In addition， it will make full use of the Belt and Road Initiative， the global public goods， to ramp up the exchange and cooperation in terms of production factors like capital， technology， human talents， and management with other countries. Furthermore， China will carry out reforms for the convenience of investment and trade by bringing into full play the role of free trade pilot zones， free trade ports， special economic zones， development zones， and tariff-free zones as the frontier for opening-up， to further promote Chinas cooperation with world.

China will commit itself to a higher level of opening-up by actively building a community of health for humankind， promoting global anti-pandemic cooperation， sharing much-needed COVID-19 medical experience， and proactively guaranteeing the provision of anti-pandemic medical materials. It will also promote cooperation in the fields of technological innovation and promotion to advance the regular flow and cooperation of international innovative technology and expert personnel， protect the rights and interests of innovators， and share the benefits of innovation outcomes. China will also seek to improve the coordination in global financial system governance and strengthen the international coordination in monetary policy and financial regulatory policies to prevent and avoid systematic financial risks.

In conclusion， in Chinas new development pattern where the domestic and international economic cycles interact with each other， the domestic economic cycle is the basis and guarantee for Chinas overall economic development， which can boost the global one. Meanwhile， the latter is the extension and supplementation of the former. The relationship between the domestic and international economic cycles is also in a dynamic change. By coordinating the domestic and international market， China is poised to promote high-quality development and deepen opening-up.