Expanding New Growth Potentaial for Domestic Demand through High-Level Synergy between New Demand and New Supply: The Primary Focus of China’s Strategy to Expand Domestic Demand

Abstract

Expanding domestic demand is the strategic cornerstone for fostering a new development paradigm. The in-depth implementation of the strategy to expand domestic demand should transcend the traditional perspective, placing greater emphasis on expanding the domestic demand system and optimizing its structure, while positioning the expansion of new domestic demand as the primary focus and strategic priority. By allowing new demand to drive new supply, and new supply in turn to generate new demand, a robust synergy between the two can be achieved. In the long-term strategy of fostering industrial upgrading, improving economic quality, and transforming development models, it is essential to align the expansion of new domestic demand with the promotion of new supply, thus effectively integrating short-term demand management with long- term supply-side regulation. To expand the scope for domestic demand growth, structural domestic demand policies should be implemented. In terms of consumer demand, efforts should focus on stimulating new demand in digitalization, intelligence, new products, and new services to promote the upgrading of consumption structures. Regarding investment demand, priority should be given to production investment in new products and services, new infrastructure, and human capital, thereby forging new advantages in international cooperation and competition through new domestic demand and driving the international circulation with a robust domestic circulation . As for implementation mechanisms, industrial innovation should be led by new demand and new markets created by new supply, while better leveraging the role of the government to continuously bolster the endogenous drivers of economic growth.

Keywords

new demand / new supply / expanding new domestic demand / structural domestic demand policy

Rights & permissions

Higher Education Press