TheCentralEconomicWorkConferencerecentlystatedthatadheringtothestrategicfocusofexpandingdomesticdemandandformingastrongdomesticmarketaretwoimportantbolstersinbuildinganewdevelopmentpattern.Wemustseetheimportanceandurgencyofexpandingdomesticneedinthishistoricalmoment.Theideaofpromotingeconomicdevelopmentbyexpandingaggregatedemandandtakingconsumerdemandasthebasicfootholdhasbeenclearlystatedinthe11thFive-YearPlan.Atpresent,weneedtotakesmoothcirculationofthenationaleconomyasourstartingpoint,increasedomesticconsumerdemandssoastomakeproduction,distribution,circulation,andconsumptionrelymorethehomemarket,andthesupplysystembettermatchdomesticdemands,soastocreateahigherlevelofdynamicbalancewheredemandpullssupply,andsupplycreatesdemands.Therefore,itisnecessarytobetterunderstandthepolicyimplicationsofstraighteningoutcirculationofthenationaleconomy,aswellasthesignificanceofpromotingthe"dualcirculation"inwhichdomesticcirculationplaysaleadingrole.Sincethecoronavirusoutbreak,alleconomieshavebeenimpacted.ForChina,theinternationalcirculationwasgreatlydisruptedbecauseofthedeclineofexternaldemandandChina-UStradefriction.Thus,weneedstrongerdomesticinvestmentandconsumption.ItisnotentirelyaccuratetodefineChina’sdevelopmentasexport-oriented.Datashowsthatmorethanone-thirdofthegoodsproducedwereexportedtotheinternationalmarketin2006.Afterthat,theproportionkeptfalling,tolessthanone-fifthin2019.Inotherwords,in2019,80%ofthenationaleconomywasdomesticcirculation.Alargereconomymeansalargermarket,andstrongerdomesticspendingpower,andtheGDP'sstrongerdependenceonthedomesticcirculation.WithChina’sGDPcontinuestogrowintermsofitsproportionintheworldeconomy,theproportionofexportsinGDPdecreasesaccordingly.Moreover,alongwithimprovingincomelevels,China’sindustrialstructurehasundergonemajorchanges.TheservicesectorwillcontinuetotakeanincreasingpercentageofChina’sGDP.Thefactthatmostitemsservicesectorsarenon-tradablewouldalsolowertheshareofexportsinGDP.AsIseeit,ontheonehand,thetraditionalwayofChina'sparticipationininternationalcirculationwillfacemorechallengesandpressure.Ontheotherhand,theturnindevelopmentalphasesbringsChinaimmenseanduniqueinternaledgeandpotential,whichwillbefavorableconditionsforChinatomeetthosechallenges.Atpresent,weshouldproceedfromthenewstageofdevelopment,buildanewdevelopmentpattern,seizetheopportunity,andpromoteaseriesofinitiativestoexpanddomesticdemand.Toreleasethepotentialsindomesticdemand,weneedtoresorttoeffectiveinstitutionalarrangementsforguidingconsumption,savings,andinvestment.I.Optimizethestructureandqualityofsupply,andtopromotetheadaptabilityofoursupplysystemtodomesticdemand.Wecanstartbyenhancingthelinkbetweenourinnovationandindustrialchains,strengtheningcoretechnologyresearchprojects,andtacklingbottleneckproblems.Weshouldalsoputmoreeffortsinadvantageousareastoproduceunparalleledtechnologies,andlayasolidindustrialfoundationinbasicmanufacturing,technology,andmaterialtocreatenewgrowthpoints.II.Releasethepotentialsofconsumptionthroughreforms.Weshouldoptimizeincomedistributionandadjustincomelevelsbetweendifferentareasandgroupssoastofurtherimprovetheeffectivenessofpublicspendingineducation,medicalcare,old-ageinsurance,andchildcare,andatthesametimedeepenthereformofland,financeandotherfactormarketstoreleasethepotentialsofinvestment.III.Handlewelltherelationshipbetweentappinginternalpotentialsandopeningup.Weshouldrevitalizeallformsofinvestment,redoubleoureffortsindevelopingdigitaleconomy,andencourageinvestmentinnewinfrastructure,andcreatesecureenvironmentforpeopletoconsumefreeofworries,soastopromotefurtherreleaseofdomesticdemandpotentials.ContributedbyChenCi,directorofEconomicsDepartment,PartySchoolofCPCYunnanprovincialpartycommitteeTranslatedbyRenMeiqi