Advertisement
US-China relations
Opinion
SCMP Editorial
Editorial
SCMP Editorial

China can continue to open up and also focus on domestic growth

  • ‘Dual circulation’ strategy does not mean isolation for the nation, which is only too willing to reach out to the rest of the world

2-MIN READ2-MIN
‘Dual circulation’ strategy does not mean isolation for the nation, which is only too willing to reach out to the rest of the world. Photo: Warton Li
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.
China’s rise cannot be prevented by an American government fearful of the United States losing its global dominance. But the no-holds-barred tactics adopted by the administration in Washington, and likely to continue no matter what the outcome of elections in November, make the process challenging, so policy modification is necessary.
A focus on domestic growth rather than exports has given the impression that Beijing’s strategy involves isolating the nation. But that is far from the case, as President Xi Jinping indicated recently; an open-door approach remains as strong as ever.

Xi reaffirmed a commitment for Beijing to work with all countries, regions, companies and investors at a recent symposium in Beijing. His pledge came as Chinese diplomats and officials are shoring up relations with governments and businesses to deter them from joining Washington’s push for a new Cold War with China.

Advertisement
The approach, outlined in May and likely to be included in the 14th five-year plan next year, is known as “dual circulation”, and aims to offset external shocks and uncertainty. With the Covid-19 pandemic having rocked the global economy, the worsening trade, technology and ideological war with the US, and growing anti-Chinese sentiment in some parts of the world, it makes sense.

Xi reaches out to ‘US states, local councils, businesses’ despite hostility

Beijing has been boosting domestic consumption since the global financial crisis in 2008. China has quickly become one of the world’s leading consumer markets and it has one of the most complete supply chains. US hostility, particularly where technology is concerned, has drawn in American allies and raised the spectre of decoupling. The long successful model of driving economic growth through exports can no longer be relied on and self-sufficiency in vital areas of production are a necessary hedge against external threats.

Advertisement
Advertisement
Select Voice
Select Speed
1.00x