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What is China’s Dual
Circulation Strategy and
Why Should Foreign
Investors Take Note?
By Zoey Zhang, China Briefing, Dezan Shira & Associates
• China’s dual circulation strategy seeks to spur China’s domestic
demand on one hand and simultaneously develop conditions to facilitate
foreign investment and boost production for exports on the other.
• Thus, the two-pronged strategy refers to the parallel emphasis on an
‘internal circulation’ and an ‘international circulation’ and a shift towards
becoming a demand and innovation-driven economy.
• While on its own merit, the DCS is not an inwards-looking strategy,
the focus on tapping into China’s internal consumption patterns and
domestic markets aims to buffer the impact of global economic headwinds
and unpredictable external events on China’s economic and financial
stability. The strategy is also, in more simpler terms, a culmination of
China’s intentions to become more self-reliant as well as increase its export
market exposure.
3 AMCHAM SOUTH CHINA
What is China’s Dual
Circulation Strategy and
Why Should Foreign
Investors Take Note?
By Zoey Zhang, China Briefing, Dezan Shira & Associates
• China’s dual circulation strategy seeks to spur China’s domestic
demand on one hand and simultaneously develop conditions to facilitate
foreign investment and boost production for exports on the other.
• Thus, the two-pronged strategy refers to the parallel emphasis on an
‘internal circulation’ and an ‘international circulation’ and a shift towards
becoming a demand and innovation-driven economy.
• While on its own merit, the DCS is not an inwards-looking strategy,
the focus on tapping into China’s internal consumption patterns and
domestic markets aims to buffer the impact of global economic headwinds
and unpredictable external events on China’s economic and financial
stability. The strategy is also, in more simpler terms, a culmination of
China’s intentions to become more self-reliant as well as increase its export
market exposure.
3 AMCHAM SOUTH CHINA
