Abstract: In the traditional self-reinforcing positive feedback domestic economic circulation, export is an important dynamic and linking variable like real estate. If these two variables are blocked in operation, it will lead to huge economic and financial risks. The essence of building a new development pattern is to achieve a high level of self-reliance, and completely adjust the demand structure, input structure (including technology sources, etc.), foreign exchange revenue and expenditure, reserves, and credit expansion methods. In this process, we need to take measures to prevent possible cost driven traps in economic operation, as well as risks such as market segmentation blocking circulation, failure of innovation mechanism switching, and instability of RMB value, etc.
