A strong, resilient, and reliable domestic circulation is the foundation and lifeline of our development. General Secretary Xi Jinping pointed out in the "planation of the Proposal of the Central Committee of the Communist Party of China on the Formulation of the 15th Five-Year Plan for National Economic and Social Development" "in the current and future period, we must insist on strengthening the domestic circulation, accelerate the formation of a strong domestic economic circulation system, and use the stability of the domestic to offset the uncertainty of the international circulation." The Central Economic Work Conference in 2025 further emphasized that "we must grasp the key focus of next year's work in the overall situation, and expand new spaces for the growth of domestic demand around strengthening the domestic circulation." Strengthening the domestic circulation and accelerating the formation of a domestic economic circulation system is the key to winning the strategic initiative in the future. We must focus on breaking through institutional blockages, eliminating bottlenecks, and deepening the construction of unified national market, using a strong domestic circulation to respond to new changes, shape new advantages, and achieve new breakthroughs.

1. Strengthen the connotation of the domestic big cycle
Strengthening the domestic big cycle means firmly bas the development on the strategic focus of expanding domestic demand. This is not only a "safety valve" to deal with the challenges of turbulent winds and waves or even shocking t under the unprecedented changes in the world in a century and to maintain economic stability, but also a "golden key" to build a comprehensive and long-term drive for the overall of Chinese-style modernization and to promote China from an economic power to a modernized power. The topic of domestic big cycle embodies a precise judgment and scientific grasp of the of economic development. It mainly has the following three breakthroughs.
First, it highlights the smoothness of the mechanism. In the past, China focused on promoting hard infrastructure such railways, highways, and ports, which connected the "arteries" of the national economy and built the physical foundation for the "world factory" to connect with the world.rengthening the domestic big cycle is key to shifting from focusing on the physical connectivity of hardware facilities to emphasizing the smoothness of the mechanism of rules and standards. By breaking industry monopies, market segmentation, and other invisible barriers, the market can operate more smoothly and effectively. By building an efficient, standardized, fair competitive, and fully open national unified big, key factors such as capital, technology, talent, and data can be optimally allocated according to market rules, market prices, and market competition. This leap is not only an in market efficiency but also a profound change in the mode of economic development and governance system. From whether the channel is "unblocked" to whether the efficiency is "high" it further promotes the close connection and efficient coordination of each link in production, distribution, circulation, and consumption. All kinds of economic elements are more smooth in the "micro cycle" enterprises, the "small cycle" of industries, and the "medium cycle" of regions, and finally achieve the optimal allocation of resources in the domestic big cycle
Second, it highlights strategic initiative. In an era of accelerated economic globalization, China has made eye-catching achievements more relying on the international circulation to integrate into the world economy. Now, facing the accelerated restructuring of the global industrial and supply chains, the undercurrents of unilateralism andism, and significant enhancement of uncertainties. Over-reliance on external markets will lead to the growth of the economy being easily constrained by external shocks, resulting in misallocation resources and loss of economic efficiency. The experience of other developed countries in the world also shows that, led by internal demand and internally recyclable, is a remarkable feature of a large developing to a certain stage. Strengthening the domestic circulation is never a passive defense, but a shift from the "away game" competition to the "home game" construction By upgrading and enhancing the internal circulation, we can not only enhance stability in withstanding external risks, but also strengthen China's bargaining chip and voice in the global economic and trade, thereby firmly grasping the initiative of development in the ever-changing international environment.
Third, it highlights the improvement of quality and efficiency. Strengthening the circulation is essentially about improving the quality of the economy and promoting its level. The domestic circulation can provide broad application scenarios and market demand traction for the cultivation and expansion of new productive, and promote a fundamental shift in the driving force of economic growth from factor-driven to innovation-driven. Creating new demand through new supply and promoting the growth of market size, building a Chinese "world market" with a unified domestic market as the base. At the same time, in this process, it can also release consumption potential, force the supply system improve quality and efficiency, improve the profit level of enterprises, pull the expansion of effective investment, and continuously promote the growth of employment and residents' income, thus forming a higher level the circulation system. The dynamic optimization process of pulling the supply upgrade by internal demand and creating new demand by high-quality supply not only makes the domestic circulation a "ballast" for the driving force of economic development, but also a "thruster" for the high-quality development, and provides a solid support for coordinating development and security and building a modern country in an all-round way.
2. Solid foundation to strengthen domestic circulation
After more than 40 years of development the reform and opening-up, China has accumulated significant strengths in terms of hardware capacity, market scale and institutional environment, which can support the domestic circulation. Conditions such as efficient framework, institutional fit, and suitable environment are maturing, which lay solid foundation for strengthening domestic circulation.
It has a comprehensive and efficient transport and logistics system and digital. China has built the world's largest high-speed railway network, highway network and world-class port group. The total mileage of the comprehensive multi-modal transportation network exceeds6 million kilometers. As of November 30, 2025, China's annual express delivery volume has exceeded 1.8 billion pieces for the first time The ratio of total social logistics costs to GDP in the first three quarters of this year has dropped to 14.0 percent, the lowest level on record. In addition to infrastructure, in recent years, China has promoted the construction of digital new infrastructure with a better scale. The total scale of computing power reaches the second largest in the world. A higher of "informational superhighway" has become the cornerstone from "Internet Plus" to "AI Plus". The construction of the unmanned system in the whole space advancing in an orderly manner. The logistics UAV, unmanned distribution vehicle and other systems drive the flow of logistics and information from two-dimensional space to three-dimensional space.
It has a large and diverse market demand and industrial support. China has a population of more than 1.4 billion, which constitutes a super-large market. It maintained the world's second largest commodity consumption market and the largest online retail market. Domestic demand continues to act as the main engine of economic growth. The new generation of consumers by the Z generation has promoted the vigorous rise of emotional consumption and interest consumption. The active elderly population is growing, and there is a large space for "silver-age" in health care, cultural entertainment and education, tourism and leisure. The deep integration of digital technology and policy guidance have jointly exerted efforts to create a series of new formats, such immersive experience, smart business circle, cross-border integration and so on. At the same time, China is the only country in the world that has all industrial categories in the United industry classification. The overall scale of manufacturing industry has maintained the first place in the world for 15 consecutive years, and it also has the ability of rapid transformation from technology to and strong industrial chain collaboration advantage.
It has innovative elements and reform elements with strong potential and vitality. To strengthen the domestic circulation, the key is to promote efficient allocation of innovative elements. In terms of R&D investment, China implements the strategy of innovation-driven development, and the intensity of R&D investment in the whole society to increase. It has approached the average level of the Organisation for Economic Co-operation and Development (OECD). Key core technology research and development are accelerating, which directly gives to a new industry, new business format, and new business model represented by artificial intelligence. At the level of market entities, the vitality of the private economy has been continuously enhanced It has absorbed more than 80 percent of urban labor employment. A number of innovative and benchmarking enterprises represented by the "Six Dragons of Hangzhou" have emerged. the level of system and mechanism, deep reform has been carried out to empower innovation and the market. By continuously deepening the reform of "delegating power, improving regulation and services" and promoting the pilot reform of the comprehensive configuration of factors market, we have continuously released institutional and mechanism vitality and accumulated valuable experience. It has laid a solid institutional foundation
3. Identify and strengthen key paths for domestic circulation
The Fourth Plenary Session of the 2th CPC Central Committee clearly proposed to significantly boost consumption, expand effective investment, and resolutely break down obstacles and blockages that hinder the construction of a unified national market. Stthening the domestic circulation is not a simple patch-up of a certain link in the circulation chain, but a systematic restructuring of the innovation chain, industrial chain, and supply chain and a comprehensive reshaping of the driving force, key links, and chains of the circulation. We should systematically deploy and precisely implement policies for key fields and key links affecting the domestic, continuously enhance the endogenous driving force and reliability of the domestic circulation, and empower the construction of a new development pattern.
Significantly boost consumption. Consumption is the demand, and the key to boosting consumption is to broaden income channels, create new supplies, and create diversified consumption scenarios. We should meet the new consumer population structure and new industry trends, and promote the development of the consumer market from scale expansion to structural upgrading. We should expand digital consumption, guide enterprises to increase the R&D and supply of smart, wearable devices, smart cars, smart toys, smart pet supplies, and other products. We should innovate the "AI " consumer industry model, and improve the penetration of AI technology in the fields of audio-visual, culture and tourism, medical and health, and elderly care and childcare. We should accelerate the improvement of developmental consumption, solve problems of insufficient supply or low quality in the fields of education, medical care, and elderly care, expand high-quality public service supply, guide social capital into education, elderly care and medical care, and improve service standards in the fields of education, medical care, and elderly care.
Expand effective investment. Investment links production and consumption, and is a key measure to optimize the supply structure and improve the efficiency of the circulation. We should optimize the investment structure, focus on major national strategic deployment, and guide more funds to fields such as scientific and technological innovation, advanced manufacturing, green low-carbon, and people's livelihood security and safety, and solidly promote major projects that are beneficial in both short and long term. Improve the investment and financing mechanism, unblock the financing channels for investment projects, promote the healthy development of the new government-social capital cooperation model, encourage attract more private capital to participate in major projects and projects that address weak links. Guide local governments to innovate project planning and investment promotion methods, and resolutely curb behaviors such disorderly investment promotion and vicious competition in accordance with the requirements of building a unified national market. We encourage local governments to focus on investment in human resources, pay attention to people' livelihood and public services improvement. We will strengthen project planning and promote effective investment around the development of new productive forces and future industries
Unclog the institutional meridians. To strengthen the domestic circulation, the key is to break down various constraints. We need to deep the reform of the market-based allocation of factors, focus on breaking the institutional and mechanism barriers of core elements such as data, technology, and capital, improve the full-link norms for data property rights, circulation and transaction, and income distribution, and promote the free and orderly flow of factors. In view of the blockages in public data authorization operation copyright data use and other aspects, we should build a cross-sectoral, cross-industry data circulation and utilization ecology, and solve the dilemma of not daring to share and willing to circulate. At the same time, we should play an important role in organized innovation, promote institutional opening up and regional synergy. Actively connect with international high- economic and trade rules, create a first-class market-oriented, legalized, and internationalized business environment, and promote more fields to achieve mutual recognition of qualifications, common, and coordinated supervision. Fully clean up and abolish policies and measures that hinder the unified market and fair competition, strengthen anti-monopoly and anti-unfair competition law enforcement and accelerate the construction of a new regulatory mechanism covering all aspects of ex ante, in process, and ex post, and provide a solid institutional foundation for the efficient operation of the.