China rises from SEZs to global economic anchor

However, President Xi has said many times that a "dual circulation" strategy is in no way a reversal of opening-up policy. Even without the pandemic or foreign attempts to limit trade, it is only natural that a huge economy with rapidly rising wages and incomes will lead many companies to focus on production for Chinese consumers.

Over the last few years, a huge number of reforms have shown that foreigners are very welcome to participate in and compete for this market. The new Foreign Investment Law that took effect on Jan 1 this year, stated that foreign companies can invest in almost all areas of the economy, excluding only a short negative list of strategic or sensitive industries.

Reforms now allow, or soon will, foreigners to own 100 percent of companies in many areas of financial services and automobile production. Soon, foreign companies will be able to have 100 percent ownership in oil and gas exploration.

Undeniably, domestic demand cannot replace external demand. The new "dual circulation" development pattern requires balancing domestic and external demand to form a well-operating "two-wheel drive". An efficient internal circulation contributes to boosting external circulation. External circulation vitalizes internal circulation to upgrade.

Despite obstacles to economic globalization, China, as the center of the global value chain, has close ties with many countries and regions. China can assist other countries to accelerate their own economic recovery and development.

China's government strongly welcomes such international giants as Apple and Tesla because they force domestic competitors to up their game. Chinese suppliers to such companies are forced to meet the most exacting international standards, improving the whole business ecosystem.

China is already the largest trading partner of over 120 countries and regions, including Japan, Germany and the European Union. China is the largest export market for many countries. Data from the Federal Statistical Office of Germany showed that bilateral trade reached 205.7 billion euros ($243.5 billion) in 2019, and China has been Germany's largest trading partner for four consecutive years.

According to Eurostat, in the first seven months of this year, the total import and export volume of the 27 EU member states and China was 328.7 billion euros, an increase of about 2.6 percent year-on-year, with China overtaking the United States as the EU's largest trading partner for the first time.

China has maintained its position as ASEAN's largest trading partner for 11 consecutive years. It has become Africa's largest trading partner for 10 consecutive years, and has become the largest trading partner of South America and the second-largest trading partner of Latin American countries.

Innovation is a driving force for China's internal circulation upgrading. Shenzhen, the hub of China's high-tech research and development, has gathered a bevy of Chinese startups and tech giants including DJI, Huawei and Tencent.

R&D investment in China's Silicon Valley accounted for 4.93 percent of local GDP in 2019, compared with 3.81 percent in 2012.Shenzhen is an "important engine" for the Guangdong-Hong Kong-Macao Greater Bay Area to establish a technological and financial center in South China.

In the future, Shenzhen should deepen its regional connection and synergistic development with Hong Kong and Macao, giving full play to its role as a prototype that explores and innovates institutional mechanisms and development models suitable for China's full integration into the international community.

Shenzhen also should give full play to its role as a new global benchmark for high-quality development, the digital economy, smart cities and sustainable development.

The writer is the president of the Center for China and Globalization, a non-governmental think tank based in Beijing.

The views don't necessarily reflect those of China Daily.