the fifth plenary session of the 19th cpc central committee took "accelerating the construction of a new development pattern with the domestic cycle as the main body and the domestic and international double cycles mutually promoting" as an important content of the guiding ideology of economic and social development in the "14th five-year" period, and made important arrangements. this is a strategic choice to upgrade china's economic development with the times and to create new advantages in china's international economic cooperation and competition.
it needs to be noted that since the reform and opening up, china has actively participated in the international cycle to achieve "both markets and resources abroad", and formed a "world factory" development model. under these conditions, china has rapidly enhanced its economic strength, improved people's lives and achieved decades of rapid economic growth. at present, with changes in the global political and economic environment, the traditional international cycle has weakened significantly, and the principal contradiction in chinese society has changed. the contradictions and problems in china's development are mainly reflected in the quality of development. this requires us to focus on domestic development and rely more on the domestic market to achieve economic development. we will give greater prominence to the quality of development and strive to improve the quality and returns of development. to sum up, we need to run our own affairs well, promote the formation of a grand and smooth domestic economic cycle, better attract global resources and factors, realize the mutual promotion of domestic and international cycles, and form new advantages in participating in international economic cooperation and competition.
we will continue to expand domestic demand as the strategic basis
in building a new pattern of development, the key is to adhere to the strategic basis of expanding domestic demand, and make production, distribution, distribution and consumption more dependent on the domestic market, thus creating a virtuous circle in the national economy. to be specific, we need to make real efforts to improve the adaptability of the supply system to domestic demand, so as to achieve a higher level of dynamic balance between demand driving supply and supply creating demand, so that the domestic market becomes the main source of final demand, and make full use of the advantages of china's super-large market.
with a population of 1.4 billion and a per capita gdp of more than us $10,000, china's consumer market has huge room for growth. in recent years, the demand for food, clothing, housing and transportation has been continuously upgraded, and the construction of urban and rural infrastructure needs to be further improved. education and health and other aspects of the demand space is broad, education industry and health industry rapid development, but it is still difficult to meet the ever-expanding demand; cultural and environmental needs are rising, and new industries, new forms of business and new models are emerging in these fields... compared with the huge scale of the market and demand, china's current supply system is difficult to adapt to the new situation and new changes in the new stage of development. in this regard, we should stick to the strategic direction of supply-side structural reform, further stimulate the vitality of the domestic market and meet market demand in a timely and effective manner.
we will rely on science and technology to strengthen our weak areas
the strength of science and technology has a direct bearing on the change of world political and economic forces, and also determines the future and destiny of all countries and nations. in today's world, core and high-end technologies are the "weapon of the nation". whoever plays the "first mover" in scientific and technological innovation in the new round of scientific and technological revolution and industrial transformation will be able to seize the first opportunity and win huge advantages in long-term development. based on the new stage of development, we must maintain the central position of innovation in china's overall modernization drive, make self-reliance and self-improvement in science and technology the strategic underpinning of national development, and step up research and development in science and technology to consolidate existing strengths and create new ones.
scientific and technological innovation is a capital-intensive activity, and the investment of capital is also a significant factor. during the 14th five-year plan period, we need to pay more attention to the foresight and frontier nature of scientific and technological innovation. we need to achieve an average annual increase of over 7% in r&d spending across the country, and strive to make our investment intensity higher than the actual level during the 13th five-year plan period. to achieve self-reliance and self-improvement in science and technology, it is necessary to build a solid material foundation and intensify the construction of scientific and technological infrastructure such as large scientific installations and scientific and technological innovation centers. realize the free-standing self-improvement needs to arouse the enthusiasm of talents of science and technology, the key is to continue to deepen reform of science and technology system, innovating the mechanism of transformation of scientific and technological achievements, to effectively improve enterprise technology innovation ability, promote innovation elements to the enterprise cluster, promote production, depth fusion, and to strengthen the education to cultivate innovative talents, respect for talent growth rule and rule of scientific research activity itself, we will strive to cultivate a number of internationally qualified strategic scientific and technological personnel, leading scientific and technological personnel and innovation teams.
we will comprehensively deepen reform and strengthen internal driving forces
to accelerate the building of a new pattern of development, we need to continue to make the best use of reform as a key step.
economic structural reform is the focus of comprehensively deepening reform. we should continue to improve the socialist market economy and properly balance the relationship between the government and the market so that the market will play a decisive role in resource allocation and the government will play its role better. we will further leverage the leading role of economic structural reform and coordinate reforms in other areas to form strong synergy in reform.
deepening supply-side structural reform is a strategic direction we must adhere to. we need to put quality first and give top priority to performance. we need to effectively change the growth model, promote changes in the quality, efficiency, and growth drivers of economic development, adjust the supply structure to better meet market demand, and increase investment in strategic emerging industries, modern manufacturing, and service industries.
in ramming the existing advantages to create new advantages
the new pattern of development is not a closed domestic cycle, but an open domestic and international cycle. by making good use of both domestic and international markets and resources, we can not only meet domestic demand, but also significantly raise the level of china's industrial and technological development.
on the one hand, realizing the mutual promotion of domestic and international double cycles can optimize the allocation of resources on a global scale, further meet the demand of domestic production and consumption, and make the domestic big cycle more smooth and of higher quality.
on the other hand, realizing the mutual promotion of domestic and international double cycles can continuously improve the quality and efficiency of china's economic development in the international cooperation and competition, continuously improve the modernization level of industrial chain and supply chain, and constantly enhance china's position in the global industrial chain and value chain.
to this end, while running our own affairs well, we need to continue to open up to a wider range, in a wider range of areas and at a deeper level, and do a better job of attracting global resources. in particular, we need to adapt to the new features and requirements of the new stage of development and build a new system of a more open economy.
to realize the mutual promotion of both domestic and international cycles, we should not only consolidate our existing advantages, but also seize the opportunity to create new advantages.
for example, china is the only country in the world that has all the industrial categories listed in the industrial classification of the united nations. it has formed an independent and complete modern industrial system, with good infrastructure and high-quality skilled workers, and has prominent comprehensive advantages in the industrial chain. especially in the face of the challenge of the covid-19 pandemic, china has played a huge role in maintaining the stability of the global industrial chain and supply chain based on its significant industrial advantages. in the future, we need to build more innovative industrial chains with higher added value through opening-up and cooperation, so as to enhance the resilience of industrial chains and further enhance the level of industrial advantages.
like, our country has 1.4 billion people, including more than 400 million moderate income group is formed by large scale domestic demand market, this not only for the traditional industries and emerging industry development provides a solid market foundation, but also for the development of new industries and the iteration of the new technology to provide broad market space, to attract international resources, strong meet the demand of domestic market and industrial upgrading needs.
for another example, china has obvious advantages in the development of digital economy. according to the digital china development report (2020), china's digital economy has become the second largest in the world, with the added value of core industries in the digital economy accounting for 7.8% of gdp. it is fair to say that in some emerging fields, china stands at the same starting line as many developed countries and has achieved development advantages in some specific areas. in the next stage, we also need to make good use of both domestic and international markets and resources, give full play to the advantages of massive data and rich application scenarios, promote the deep integration of digital technology and the real economy, so as to promote the transformation and upgrading of traditional industries, generate new industries, new forms and new models of business, and strengthen new drivers of economic development.
in this regard, while consolidating the existing advantages, china's industrial chain supply chain should be organically embedded into the global industrial chain supply chain and become an indispensable part of it, so as to effectively create new advantages for participating in international cooperation and competition.
source: state-owned assets and administration commission of the state council