China must unblock internal circulation, No 4 official says in warning of weak domestic demand

The domestic market, or the internal leg of that approach, would be of central importance to China’s new growth structure and needs to function more smoothly to shield the economy against global uncertainties, said Wang Huning, head of the Chinese People’s Political Consultative Conference (CPPCC), at a meeting of the political advisory body on Monday.

A strategy that kicked off four years ago amid rising geological rivalries, with an eye on seeking greater self-reliance while remaining open to the outside world, it was China’s “strategic deployment to seize the initiative in development”, the party’s No 4 official was quoted as saying by the official Xinhua news agency.

The policy was reiterated as economic activity remains weak and low revenue and profits continue to trouble the private sector, adding pressure on leadership’s economic growth goal of 5 per cent growth for all of China this year.

“Smoothing out domestic circulation is a strategic choice to boost economic growth and create new advantages for our international economic cooperation and competition,” Wang said at Monday’s meeting.

Presenting their research findings at the meeting, themed “unblocking internal circulation”, leaders of minor political parties pointed to a series of issues, including a more efficient logistics system, a unified national market, the bigger role played by innovation, and better coordinated regional development, Xinhua said.