China will take advantage of a high-level opening to promote the dual-flow development model, which should not only help boost domestic consumption, but also attract foreign resources, the country’s top trade official said on Monday. .
While increasing domestic demand and ensuring the fluidity of internal circulation – the domestic cycle of production, distribution and consumption – China will continue to stimulate exports and imports, as well as attract foreign direct investment, strengthening thus its global cooperation efforts, said Minister of Commerce Wang Wentao.
The official said the dual circulation paradigm will be the centerpiece of the global effort and propel China towards high-quality, sustainable growth.
The new model makes the internal market the backbone of the economy, while national and international markets support each other.
He said China was pushing for the implementation of the Comprehensive Regional Economic Partnership Agreement. It is also actively advancing the negotiations for a tripartite free trade agreement between Japan and South Korea. In addition, the country actively adheres to various free trade agreements and investment agreements.
All of these efforts have helped form a network of free trade zones, facilitating a high level of global trade liberalization, Wang said.
As China actively plans to join the Comprehensive and Progressive Agreement on Trans-Pacific Partnership, or CPTPP, in order to move forward with reform and opening up at all levels, the Ministry of Commerce has led a lot of preliminary work and also established informal contacts with relevant parties.
The CPTPP, which came into effect on December 30, 2018, is a trade agreement between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Their global GDP represents 13% of the world economy.
Since the Chinese economy has been deeply integrated into the global economy, with interests more closely linked than ever before, demand management is another practical solution to stabilize foreign trade and foreign investment, said Zhang Yongjun. , researcher at the China Center based in Beijing. for international economic exchanges.
“The domestic market cannot be separated from the world market and external circulation could stimulate internal circulation. It is a key factor in demand management,” he said.
Sun Yibiao, member of the 13th National Committee of the Chinese People’s Political Consultative Conference, said China should actively participate in digital technology-based business activities, tax reform of digital products and services in accordance with the rules of the organization. world trade, as well as to take part in the formulation of related global rules.
In addition to improving digital intellectual property protection, China should start with relatively easy-to-achieve goals such as exploring digital certificates and protecting consumers’ rights and interests to promote the negotiation of new trade rules. digital in the regions. , including the savings involved in the Belt and Road initiative, said Sun, who is also a former deputy minister of the General Administration of Customs.
He said China should accelerate the digital transformation of foreign trade to cultivate new business formats and better position its manufacturers in global supply chains.
Digital commerce includes products and services delivered in digital form, such as software and cloud computing, as well as forms of commerce supported by digital technologies, such as cross-border e-commerce, he said.
The national policy adviser said the measures can strengthen the global disposition of Chinese e-commerce platforms and manufacturers, and build more overseas warehouses, exhibition and trade facilities, and trading centers. services to improve their presence in the market.
Through its pillar role in supporting the global industrial chain, China’s foreign trade grew 32.2% on an annual basis to reach 5.44 trillion yuan ($ 837.3 billion) over the course of the first two months of the year, according to the latest data from the General Customs Administration. .