Scholars' views

Usher New Globalization with New Development Pattern

The proposal of the CPC Central Committee on formulating the 14th Five-year Plan for economic and social development and the long-range objectives through the year 2035 (hereinafter referred to as the Proposal) adopted at the Fifth Plenary Session of the 19th CPC Central Committee makes the strategic decision for construction a new development pattern in which domestic and foreign markets boost each other, with the domestic market as the mainstay. General Secretary Xi Jinping stressed that: The new development pattern is not a closed domestic market, but an open pattern of domestic and foreign markets boosting each other. Rather than read the promotion of grand smooth domestic economic circle as a passive policy in response to the increasingly complex international environment and the obvious weakening traditional international circulation, we shall, standing at the height of world history, construe it as an initial choice to reshape relations with the world. Its purpose is to realize the virtuous circle of the national economy by relying on the domestic market and form new advantages of China's participation in the international economic cooperation and competition with high-quality development, ultimately leading to new globalization with high-level opening and contributing Chinese wisdom and strength to the promotion of a community with a shared future for mankind.

I. Huge world changes and new economic globalization

As the objective requirement and inevitable result of the development of social productive force, economic globalization has promoted the flow of commodities and elements and enhanced exchanges and cooperation for people around the world. Economic globalization in history was formed gradually in the process of the establishment and development of the capitalist mode of production. The exploitation and plunder by some people to others above the development is the essence of the capitalist mode of production. Therefore, the economic globalization led by the capitalist mode of production could not achieve inclusive development, easily giving rise to hegemonism and power politics, triggering closed confrontation in international relations, and forming a conceptual zero-sum game of you lose, I win or you win, I lose.

The new economic globalization is guided by the concept of human community with a shared future, upholds the principle of extensive consultation, joint contribution and shared benefits, and insists on the equality of all nations regardless big or small, strong or weak, rich and poor. It expands cooperation by seeking the combination of interests of all nations and improves global economic governance oriented by opening-up, powered by cooperation and aimed at sharing to make economic globalization built on openness, inclusiveness and win-win cooperation and focus on enhancing development inclusiveness, thus economic globalization can benefit every country and nation and make it develop towards a more open, inclusive, beneficial, balanced and win-win direction.

Profound changes unseen in a century, the entry of socialism with Chinese characteristics into a new era, and the consequent profound changes in China's relations with the world are distinctive features of the 21st century, which are fundamentally reshaping the space and pattern of coexistence between socialism and capitalism. The coexistence and competition between the two systems is the key to shaping the course of profound changes unseen in a century and decides whether to let economic globalization return to the closed confrontation and exploitation and plunder basis, or to promote the new economic globalization based on openness, inclusiveness, and win-win cooperation. In 2020, at the historic juncture of the Two Centenary Goals, China will soon finish the building of a moderately prosperous society in all respects and realize the first centenary goal, while embarking on a new journey toward the second centenary goal of fully building a modern socialist country. In such a context, the Proposal has made the strategic decision of constructing a new development pattern and emphasized promoting national economy based on the virtuous cycle of economic development level to form the new advantages of China's participation in the international economic cooperation and competition, benefiting to open more energetic, inclusive and sustainable new economic globalization, promoting the building of a community with a shared future for mankind.

II. Based on the domestic market to open a new situation

The profound changes unseen in a century are significantly featured by the accelerated decline of western advanced capitalist countries, such as the US and Europe, and the collective rise of emerging markets and developing countries. According to purchasing power parity data published by the International Monetary Fund (IMF), the share of the seven most advanced capitalist countries -- the United States, the United Kingdom, France, Germany, Japan, Italy, and Canada -- in the world economy has fallen below 50% since the 2008 financial crisis, and the emerging markets and developing countries represented by China accounts for more than 50% of the world economy. The changes in the international economic pattern show that the current series of global problems for the social development of human beings can no longer be effectively solved in the original western-centric international political and economic order. Only by abandoning the old thinking of the zero-sum game and actively fostering a new concept of win-win cooperation to build a new international division of labor system and global value chain, jointly promoting the building of an open world economy, can we open up a new chapter in a changing world.

The 14th Five-Year Plan period will be a decisive stage for the transformation of the world. A new round of technological revolution and industrial revolution such as artificial intelligence, big data, quantum information, and biotechnology is gathering strength, inducing new ideas, new industries, new forms, and new patterns for Internet +, sharing economy, 3D printing, and intelligent manufacturing, etc., bringing tremendous change in global development and human production and life, which contains huge business opportunities and is creating huge demand. However, the global pandemic of COVID-19 has accelerated the changes in the world. Not only international trade, investment, and consumption are in recession, but the spread of unilateralism and protectionism has also caused a huge impact on the global industrial and supply chains. In this case, the Proposal has suggested adhering to the core position of innovation in the overall modernization construction in China, strengthening the national strategic ability of science and technology, promoting the in-depth integration of the Internet, big data, artificial intelligence, and other industries, and forging the digital industrial cluster with international competitiveness, which are conducive to seizing the major opportunities of technological change and playing the leading role of scientific innovation at a higher level and on a larger scale, thus providing a new driving force for China's innovation development as well as injecting new vitality into the new economic globalization.

Promoting innovative development based on the major domestic market will help exert the unique advantages of the Chinese system, improving the new system concentrating nationwide effort under the socialist market economy and fighting the critical battle for key and core technologies. Core technologies do not come by acquiring, purchasing, or begging. Only by giving full play to China's remarkable advantage of bringing together the needed resources to accomplish great tasks to improve the national innovation system, can we realize self-reliance and self-improvement in science and technology. On the one hand, we should make up for the shortcomings and solve the bottleneck of key and core technologies over a barrel. On the other hand, we should extend our advantages to consolidate and enhance the international leading position by forging killer technologies. However, it should also be noted that once core technologies are separated from their industrial chains, value chains, and ecosystems, it will be difficult to put them into practice and form a powerful force driving development. Therefore, promoting innovative development based on the domestic market is also conducive to giving full play to China's economic advantages of a complete industrial system and huge market potential, reshaping the industrial chain and supply chain by relying on the big domestic market, promoting the upgrading of industrial base and modernization of industrial chain, and implementing the new development concept into all fields and links of the national economy, thus forming the new advantages of China's participation in the international economic cooperation and competition based on high-quality development and supporting the reconstruction of the global innovation map and global economic structure.

III. Leading new economic globalization with domestic and international double circulation

The mainstay of the new development pattern is the domestic market, but it aims to the formation of a benign interaction between the domestic and international markets that promote each other. The development is rooted in the domestic to enhance our ability to withstand external risks and maintain steady and sound development of the national economy as the world enters a period of upheaval. In turn, a virtuous national economy market can provide strong support for improved opening up and enable China to better integrate into the world in a smoothly connected domestic and international market, to promote the reshaping of the global industrial chain and supply chain and form a more stable and balanced global economic cycle.

First, we should make good use of the domestic market and speed up the formation of a new pattern of comprehensive opening in all aspects and areas by continuously expanding market opening, so that the world can share the new opportunities brought by China's development. The Proposal puts forward to build a new system of a higher-level open economy through a series of measures, such as promoting trade and investment liberalization and facilitation, improving the system for foreign investment management based on pre-establishment national treatment and negative list, granting a greater reform autonomous right to the pilot free trade zone, and steadily promoting the construction of Hainan Free Trade Port, to attract global resources with the domestic market and provide new impetus for new economic globalization. It is worth mentioning that the Proposal calls for exerting well the important exhibition platforms such as China International Import Expo etc, which is a great decision made by China aiming at propelling a new round of high-level opening-up, suggesting China's consistent position in firmly promoting free trade and actively realizing the coordinated development of import and export, indicating that China is practically committed to promoting new economic globalization on the basis of inclusiveness, openness, and win-win results.

Second, we should build a new platform for international cooperation to propel the world to develop towards a more balanced and sustainable direction. The international cooperation of the Belt and Road Initiative is a practical platform for China to promote the construction of a human community with a shared future. On the basis of equality and free will, the construction of the Belt and Road Initiative considers the interests and concerns of all parties and emphasizes equal participation and risk sharing, without the closed system and development in a destructive way. We persist in the win-win cooperation, advocate common prosperity development, adapt to the historical trend and tide of the times for the development of social productive forces and universal communication, and respond to the common aspiration of people around the world for peace, development, cooperation, and win-win outcome. Up to now, more than 150 countries and international organizations have signed cooperation agreements with China on co-building the Belt and Road Initiative. The Proposal regards the promotion of co-building high-quality development of the Belt and Road Initiative as an important measure to implement high-level opening and open up the new prospect win-win cooperation, which means to deepen international production capacity cooperation, expand two-way trade and investment, promote the development of multilateralism and free trade, and contribute Chinese solutions to the promotion of new economic globalization by constructing a mutually beneficial industrial and supply chain cooperation system, based on policy communication, infrastructure connectivity, unimpeded trade, accommodation of funds and people-to-people bond.

Source: Nankai University News

Source: Tianjin Daily

February 1, 2021, page 9