Discover and read the best of Twitter Threads about #DualCirculation
Most recents (8)
Our new report – China’s 14th Five Year Plan: A Contender for The European Green Deal? – examines #climate, energy & industrial strategies in the latest #FiveYearPlan, and offers a lookback on climate progress in the last 5 years in the EU & China e3g.org/publications/c… (1/7)
A look back at the pace of wind and solar development in the last 5 years as #China positions renewable energy as a "strategic emerging sector" in its 14th Plan. (2/7) 
The EU, while unable to compete with China on cost of manufacturing and research spending, remains more competitive on the capacity to innovate. The EU27 registers more green technology patents annually compared to China. bit.ly/3fwzdcV (3/7)
Xiao Gang says during 14th 5-Year Plan, China needs to carefully manage 5 relationships: that between inheritance & innovation, between the market & the government, between opening-up & independence, between development & safety, and between development strategies & tactics. 1/8
The Chinese government newly proposed that supply-side structural reforms should remain as the emphasis of efforts, while demand-side management also deserve due attention. 2/8
Xiao believes that to promote the new development pattern of #dualcirculation, the key is to balance the upgrade of the supply side and the expansion of consumer demands. 3/8
How Should China’s Economy Achieve Potential Growth amid the Secular Stagnation New Normal of Global Economy? by Cai Fang: new.cf40.org.cn/uploads/202009… 1/5
Secular stagnation,the new normal of global economy,and de-globalization are two major external challenges faced by Chinese economy.While the former features low interest rates,low inflation and low growth, the latter is likely to be aggravated by the #COVID19 outbreak. 2/5
In the meantime, China is also facing one of the most severe constraints to economic growth, that is, total population growth will enter the negative territory very soon, which will cause serious shortfall in aggregate demand. 3/5
10 measures proposed by Zhang Xiaohui, former assistant governor of the #PBC, to promote the #dualcirculation in financial services: mp.weixin.qq.com/s/tErN3tDdScZR…
1. Properly position the financial sector against the new backdrop featuring “dual circulation”. China’s financial system needs to step up a new wave of upgrade and reform. It should give direct #financing a bigger play based on technological innovations.
2. Financial supply-side structural reform shall continue to play a core role. China needs to improve twin-pillar regulatory framework (monetary¯oprudential policies) and make monetary policies more flexible; develop multi-tier capital market; boost #RMB internationalization.
Some say #RMB exchange rate shouldn't be allowed to fluctuate freely. But Prof Yu Yongding says this has been proven wrong, and the best proof against it is the debate as to whether RMB exchange rate should be allowed to breach the critical level of 7 against #USD...1/6
This issue sparked controversy in the middle of last year. One view was that once the RMB exchange rate breaks the 7/USD threshold it will enter a freefall by as much as 20% or even 30%, which should not be allowed to happen...2/6
However, it was proven wrong. Facing the critical juncture, the #PBC remained calm and patient and did not intervene. It turned out that RMB did not end up in a crash as expected; instead, its exchange rate gradually stabilized...3/6
The #dualcirculation with domestic circulation as mainstay underlines proactive opening up, says Xu Qiyuan, CF40 Resarch Department Head...1/7
China has accelerated opening up since May 2020. However, the external environment is becoming "more unstable and uncertain"- foreign supply chains on the supply side are unstable, protectionism on the demand side prevails, and the global economy is in deep recession...2/7
As a result, international circulation will encounter shocks, the effect of opening up will be affected, and China could even face a passive situation in opening up...3/7
Boosting domestic demand &accelerating the formation of a new development pattern in which domestic &international markets reinforce each other should be the focus for China’s economic strategy in the next stage.The implication of “building a complete domestic demand system”: 1/6
1. The building of a complete domestic demand system must focus on stabilizing market expectations and increasing investment enthusiasm of the private sector. 2/6
2. Focus on improving the efficiency of resource allocation through supply-side structural reform, as at present there are still many weak links on the supply side with the ongoing consumption upgrading. 3/6
To build a complete domestic demand system in short term, China needs to streamline domestic circulation as soon as possible and accelerate the recovery of domestic economy, according to a recent paper by Huang Qifan: new.cf40.org.cn/uploads/202008… 1/5 #dualcirculation
1. Strengthening weak links, invigorating the economy, and building comprehensive innovation chains that can support the development of a science and technological power. 2/5
2. Advancing Industrial 4.0 by accelerating the industrialization of digital economy and the digitization of the traditional industry through the development of new infrastructure. 3/5
