Abstract: From the perspective of global value chain division of labor, based on the supply-demand relationship of intermediate goods, this paper examines the connotation, form, structure and nature of the dual circulation development pattern. In the past, China's dual circulation development pattern, which was dominated by the international big circulation, is different from the new development pattern featuring dual circulation, in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay. There are important differences in the operating mechanism of the industrial chain, the logic of capital flow and the development effect. The essence of the new development pattern is to build an independent and strong modern economic system under the conditions of a global value chain dominated by China, highlighting the fundamental purpose of using autonomous and controllable technologies to produce and mainly meet domestic needs. The starting policy for entering the new development pattern should start with adjusting the capital / labor income ratio, and carry out policy reform with the content of protecting workers' rights and increasing workers' welfare. In the process of changing the development pattern, attention should be paid to preventing possible cyclical risks from factor competitiveness, market utilization, technology sources and credit system.
