Facing the changes in the international political and economic environment and the adjustment of industrial structure, the central government proposed that we should give priority to domestic demand, and gradually establish an international and domestic "dual-circulation" development pattern. Liu Zhibiao, dean of the Yangtze River Industrial Economics Research Institute of Nanjing University and distinguished professor of the Yangtze River Scholars, pointed out that using the domestic market is neither self-reliance nor closed door, but emphasizing further opening-up. In the background of Sino-US conflicts and the COVID-19 pandemic, the coordination mechanism of product division has been shaken. On the one hand, the coordination mechanism of large-scale division of labor worldwide has encountered serious challenges; on the other hand, the instant delivery system of multinational companies has been destroyed, which will lead to the reorganization and change of global industrial chain, that is, inward-looking tendency. From a vertical perspective, the global industrial chain will be shortened; and from a horizontal perspective, the industrial chain will gather in one region. The inward-looking tendency of future industry in multinational corporations is similar to China's dual embeddedness mode of global value chain competition, that is to say, they both compete dynamically in regional clusters by absorbing foreign capital. In the face of a trend of global industrial chain reorganization, we must focus on domestic demand, gradually establish an international and domestic "dual-circulation" development pattern, build world advanced manufacturing clusters, improve capabilities of basic industries, and enhance modernization of industrial chain. We should therefore, base ourselves on opening-up at home, and foster nationalization of regional strategy to form regional market, and on this basis construct a unified domestic market.
