Abstract: China's comparative advantage in the past lay in the high cost-effectiveness of its production factors, while its future core competitiveness will stem from a unified and expansive domestic market. Once China establishes a strong domestic market, its influence in global affairs will increase significantly. The primary contradiction in China's economy today is no longer "inability to produce", but rather "inability to sell". In China, the supply side is a fast-changing variable, while the demand side is a slow-changing variable. The fundamental causes of the domestic market's underdevelopment lie in imbalances in tax and incentive mechanisms, the orientation of performance evaluation and statistical systems, the limitations of the export-oriented model, and constraints imposed by the income distribution structure. Building a robust domestic market requires coordinated reforms in both macro- and micro-level policies, presenting at least four major opportunities for enterprise development: significantly expanded market space; supply chain optimization; technological innovation and collaboration; and reduced factor costs to enhance international competitiveness. Building a robust domestic market represents a major boon for all Chinese enterprises.


