Beijing’s ‘dual circulation’ will alter trade dynamics

Significance

It closely interrelates with a policy of enhancing China’s economic self-reliance and providing autonomous economic development free from the threat of decoupling from Western economies. It sets a conceptual framework for government policies in various fields as well as for the business strategies of Chinese companies.

Impacts

• China will try to become self-sufficient in key production inputs such as machinery and components.
• Suppliers in Asia will adapt as China produces more at home but imports more low-end goods and advanced technology.
• China will be able to export products that it increasingly produces to fulfil its self-sufficiency goals.