Shanghai Planetarium, Pudong Art Museum, and others have extended their opening hours and held night events; The application of intelligent technology in scenic spots such as West Lake in Hangzhou and Huajiang Canyon Bridge in Guizhou helps tourists book and purchase tickets, providing real-time information reference for tourists; Jiangsu's hosting of the "Su Chao" competition has driven a continuous increase in cultural and tourism consumption... Recently, many places have optimized product and service supply, and consumer vitality continues to be released. The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China has made new strategic arrangements for "building a strong domestic market and accelerating the construction of a new development pattern", proposing to "lead new supply with new demand, create new demand with new supply, and promote the benign interaction between consumption and investment, supply and demand". During the 15th Five Year Plan period, China's development environment is facing profound changes, with a significant increase in external uncertainties. It is of great significance to enhance the endogenous driving force and reliability of the domestic circulation and accelerate the construction of a new pattern of economic growth driven by domestic demand. The new demand leadership is reflected in the expansion and upgrading of residents' consumption, emphasizing the fundamental role of consumption in economic growth and the organic unity of meeting people's needs for a better life. According to statistics, in the first three quarters of this year, the contribution rate of final consumption expenditure to economic growth reached 53.5%, fully leveraging its role as the main engine of economic growth. Specifically, there is a clear trend of personalized, diversified, and quality-oriented consumption among residents, especially with the rapid growth of service consumption. The per capita service consumption expenditure of residents accounts for about 46% of the per capita consumption expenditure. The creation of new supply is reflected in the active response and creative guidance of the supply side to changes in demand, emphasizing the dynamic adaptation of the production system to the demand system. Data shows that in the first three quarters of this year, there was a strong trend of investment and expansion in emerging fields. Investment in the automotive manufacturing industry, railway, shipbuilding, aerospace, and other transportation equipment manufacturing industries all maintained double-digit growth year-on-year. Urban renewal, people's livelihood, and other areas have gradually become new investment priorities. Promoting a positive interaction between new demand and new supply is an important lever for shifting the economy from high-speed growth to high-quality development, and provides strong support for the transformation of development momentum, upgrading of economic structure, and improvement of people's livelihood needs. Currently, the consumption structure of Chinese residents is accelerating towards quality, service, and personalization, which poses new requirements for the existing supply system. We must adapt to the development trend of new demands and use them to drive supply side structural reform and innovative development. Focusing on improving the quality of physical consumer goods, promoting the transformation of production methods, and driving the aggregation of capital, technology, talent and other factors towards the pursuit of quality and innovation. At the same time, we will focus on accelerating and expanding service consumption to create new growth points. For example, the consumption of services such as cultural tourism, sports, health care, and childcare, as key areas of quality demand, has enormous market space and development potential. Driven by diversified demands, the service industry has blossomed in various forms, achieving a win-win situation of industrial growth and improvement of people's livelihoods. In addition, it is necessary to strengthen new business models, open up new tracks, and tap into even larger demand markets. For example, the consumption preferences of young people are shifting from "cost-effectiveness" to "emotional price ratio", paying more attention to emotional experience and personal identity. Driven by this, "blind box economy" and "guzi economy" have emerged as new hotspots and growth poles in the consumer market. Empower new supply with new technologies and create new demand. New supply can perceive the trend of consumption upgrading and improve people's quality of life through technological and model innovation. On the one hand, achieving precise supply-demand matching through big data and artificial intelligence; On the other hand, innovation in core technologies is driving the emergence of new industries and consumption. Major technological breakthroughs can define a completely new market, giving rise to new industrial and consumer chains. Taking new energy vehicles as an example, in the first three quarters of this year, China's production and sales of new energy vehicles increased by over 30% year-on-year, with a market penetration rate of 46.1%. New demands such as charging stations, intelligent vehicles, connected cars, and battery recycling have emerged, giving rise to multiple trillion dollar new markets. In addition, the quality and brand building empowered by technology can effectively stimulate potential upgrade needs. For example, some technology companies have developed their own technologies to create distinctive high-end products and services, successfully achieving a leap from a follower to a market leader and becoming a model of high-end domestic products. To achieve a virtuous cycle of supply and demand interaction, effective guarantees from relevant institutional mechanisms are indispensable. The top priority is to focus on building a supply and demand docking platform, driving innovation through scenarios. For example, Chengdu, Sichuan Province has released a list of supply and demand for scientific and technological innovation achievements in fields such as artificial intelligence and biomedicine, to assist in the transformation of scientific and technological achievements and lead new demand with new supply. Secondly, optimize the direction of government investment and unleash the potential of both supply and demand sides. At the national level, efforts are being made to promote the "dual" construction and directly expand effective demand. In 2024, a total of 1.72 million units (rooms) of affordable housing, affordable rental housing, and public rental housing will be built and raised nationwide. This year, related work will continue to advance. During the 14th Five Year Plan period, the number of national level manufacturing innovation centers increased to 33, breaking through nearly 700 key common technologies and laying a solid foundation for the expansion of new industries. In addition, efforts should be made to gradually eliminate unreasonable consumption restrictions and enhance the efficiency of the supply and demand cycle. For example, in the field of service consumption, gradually relax market access for high-end medical, cultural tourism, elderly care, etc., attract social capital to enter, and optimize supply. Some cities have successively introduced measures to relax market access, promoting the landing of a number of major foreign investment projects in fields such as healthcare and value-added telecommunications, which is a beneficial exploration. The blueprint has been drawn, set sail again. Guided by new demand and supported by new supply, we will promote a positive interaction between new demand and new supply, and write a new chapter of high-quality development. (Xinhua News Agency) Author: Mao Zhonggen (Dean and Professor of China Western Economic Research Institute at Southwest University of Finance and Economics) Wang Pengfan (Lecturer at Southwest University of Finance and Economics)