China accelerates inward economic pivot with plan to create a ‘unified domestic market’
- Beijing has released new guidelines for a ‘highly efficient, rules-based’ domestic market that analysts say aims to tackle fragmented production and resource use
- Efforts will also be made to clean up preferential policies that disadvantage foreign companies, while protecting property rights, market access and fair competition
China has doubled down on its strategy to make the economy less dependent on the outside world by releasing plans for a “unified domestic market”, as geopolitical tensions and domestic coronavirus outbreaks add to supply chain disruptions.
The strategy aims to promote more efficient production, distribution, circulation and consumption, while making China an even bigger magnet for global companies and investment, according to guidelines released on Sunday by the Central Committee of the Communist Party and the State Council.
“[We should] step up building a unified national market that is highly efficient, rules-based, fair for competition and fully open, and push China’s market shift from big to strong,” said the guidelines, which have only just been made public after being approved by President Xi Jinping in mid-December.
Analysts said the policy aims to tackle market fragmentation, while the business community has raised concerns about administrative interference and called for more concrete details.
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