Abstract: To form a unified, open, competitive and orderly domestic market as soon as possible is the basis and premise of building a new development pattern of dual circulation. At present, the development of factor market lags far behind the commodity market, and the obstacles mainly include vertical administrative governance, horizontal administrative governance and enterprise market power. Among them, the deep-seated reason why vertical administrative governance hinders the formation of a unified market is that China's modernization process aimed at catching up with and surpassing western countries is still in progress, and the growth catch-up strategy in the catch-up system needs to give more play to the role of the visible hand of the government. The reason why horizontal local government governance hinders the formation of a unified domestic market is that Chinese local governments have formed a serious corporate tendency in the market-oriented reform, and the leading industrial policy of local governments has become a means and tool to divide the market. Therefore, it is necessary to explore the path and policy choice of the construction of domestic unified market from seven aspects: scale, structure, function, mechanism, organization, space and environment.
