‘Domestication’ of the Chinese economy
At a time when the world economy is reeling under the Covid-19 crisis, China has embarked on a new development paradigm to re-establish its position as a global economic power. This is evident in its 14th Five-Year Plan (2021-25) announced by the government in July 2020 which is enshrined with novel concept called ‘dual circulation.’
This development paradigm is centered on domestic circulation with a “dual circulation” model in which domestic circulation and international circulation promote each other. China adopted since 1979 an ambitious export driven model by making full use of domestic and international markets and resources. As the new model is emphasising on domestic circulation, many key China watchers have started pondering whether China plans to transition from export driven growth model to a domestically consumption driven economy.
China has been a major player in…