The “Dual Circulation” strategy: China’s response to declining international economic connectivity1

ABSTRACT

The rise of protectionism in Europe and the US, as well as downward trends in international trade, investment, and production, are major aspects of the current decline in international economic connectivity. The lockdown due to the COVID-19 pandemic has additionally weakened relations between economies. All these considerations have prompted economic planners in China to redefine strategies for future development. The response to these disruptions have been a development paradigm, dubbed “Dual Circulation, " referring to the partial separation of “internal circulation, " the domestic cycle of production, distribution, and consumption, from “external circulation, " based on export demand. “This paper shows that due to timely adjustment of economic policies in the past, “Dual Circulation” is a highly feasible and optimal solution for the continuation of China’s development based on the most suitable level of international economic connectivity. © 2023 selection and editorial matter, Liu Zuokui and Branislav Ðordevic;individual chapters, the contributors.