In the face of multiple severe shocks such as the Sino-US trade friction, the COVID-19 epidemic, and the deep recession of the world economy, people are now increasingly aware that the formation and development of a strong domestic market is not only to digest domestic surplus under supply-side structural reforms, but also to build a new development paradigm featuring dual circulation, in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay in the new stage of high quality development.What are the effects of a strong domestic marketA strong domestic market undoubtedly increases the complexity of the national economic system and poses major challenges to the country's infrastructure and market governance capabilities. However, its inherent network characteristics can smoothly achieve huge economic effects that cannot be achieved by a small country economy: One is the effect of economies of scale. The second is the effect of resource siphon. The third is the effect of system improvement. The fourth is the effect of division and coordination.Promote the formation of a strong domestic market with institutional innovationIt is necessary to improve and optimize the supply side and stimulate the increase of factor productivity. The first is the reform of the income distribution system; the second is to strengthen competition to promote regional market integration; the third is to focus on equal access and fair competition, correct the imbalance of the industrial structure, improve the business environment of the real economy, and improve the investment desire and investment ability of private enterprises.
