The experience of international development shows that the mutual promotion of domestic circulation and international circulation is the important competitive advantage of major economies. As a typical developing economy, our country should play the advantage of super-large-scale domestic market. Instead of relying on external demand to passively adapt to the competition of economic globalization, we have gradually shifted to relying on domestic demand to actively create opportunities for global development. Through the implementation of the strategy of economic globalization based on domestic demand, we should promote the modernization and high-quality development of the industrial chain under the mutual promotion of the domestic and international dual circulation. The key for China to fostering a new development paradigm with domestic and international circulations reinforcing each other is to upgrade the industrial base and modernize the industrial chain.The policy orientation of fostering a new development paradigm with domestic and international circulations reinforcing each other is as follows: First, we should continue to deepen the supply-side structural reform, improve the total factor productivity of China's economy, and promote high-quality supply in the domestic market. Second, we should continue to deepen the reform of income distribution and improve the income distribution pattern of domestic residents, so as to expand the scale of domestic demand and optimize the structure of domestic demand. Third, we should continue to open up wider and implement the strategy of economic globalization based on domestic demand. Finally, it is necessary to further perfect the fault-tolerant and error-correcting mechanism in China's institutional innovation.
