Think Tank

Continuously enhancing and leveraging the advantages of a super large scale market

2026-01-14   

The super large scale market is a significant advantage for China's economic development and an important strategic resource for participating in international competition. It is not only a stabilizer for economic operation, but also a driving force for shaping new momentum and advantages. The period of the 15th Five Year Plan plays an important role in the basic realization of socialist modernization, serving as a bridge between the past and the future. The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China pointed out that China's economic foundation is stable, with many advantages, strong resilience, and great potential. The supporting conditions and basic trends for long-term improvement have not changed. The advantages of the socialist system with Chinese characteristics, the advantages of a super large market, a complete industrial system, and abundant talent resources are more prominent. The advantage of a super large scale market is not only reflected in the scale effect, but also a systematic advantage that includes multiple dimensions such as expanding increment, improving quality and efficiency, and facilitating circulation. During the 15th Five Year Plan period, China's development environment is facing complex changes. It is necessary for China to deeply understand the essence of the advantage of a super large market, continuously enhance and fully leverage this advantage, and seize the strategic initiative to solidly promote high-quality development in the world's century long changes. Strong confidence and determination lie in the great power game, where the market itself is a scarce resource and an important bargaining chip. The proposal of the "Fifteenth Five Year Plan" emphasizes that "a strong domestic market is the strategic support for Chinese path to modernization". The key to forming a strategic foundation lies in the breadth, depth, and resilience of the domestic market, which provides strong support for China to maintain strategic determination and achieve technological self-reliance and self-improvement. Faced with trade protectionism and external technological blockades, a super large market can provide alternative growth space for enterprises, accelerate the process of key technology research and localization, and especially provide more patient capital and application scenarios for the long-term development and application of hardcore technology. China has expanded its influence in participating in global economic governance by relying on the large market. From international experience, economies with larger market sizes have greater say and room for maneuver in international trade negotiations, standard setting, and rule negotiations. China has become an indispensable and important node in the global industrial and supply chains. More and more multinational companies are laying out key links in their supply chains in China to be close to the end consumer market, reduce logistics costs, and respond quickly to changes in demand. At the same time, China has gradually formed market standards and business models with global influence in fields such as 5G communication, mobile payments, and new retail. At the same time, a super large market means that it can meet diverse and multi-level demands, thereby improving supply-demand adaptability and enhancing supply-demand balance. China has a population of over 1.4 billion and a middle-income group of over 400 million. The development of regional markets presents a gradient feature, with complementary support between different vertical and horizontal sectors from cities to counties, and from the east to the central and western regions. It can effectively respond to external shocks and new changes brought about by domestic economic structural adjustments. In the international economic and trade struggle, the supporting role of China's domestic demand market in the economic fundamentals has become increasingly evident, demonstrating strong resilience against shocks. When the consumption growth rate slows down in some cities, there are still vast markets in third tier and below cities, counties, and rural areas that can further unleash demand potential and promote stable consumption growth. The economies of scale and cost advantages in forming a gravitational field market for factor resources are important factors affecting specialized division of labor. The economies of scale effect of ultra large scale markets is significant, which can support more refined, large-scale, and specialized division of labor, and stimulate more efficient supply chain networks. This not only helps to enhance the competitive advantage of local enterprises, but also facilitates the convergence of global high-end factors, providing strong factor support for the development of emerging industries. For example, the rapid development of the new energy vehicle industry in recent years, with production and sales ranking first in the world for many consecutive years, cannot be separated from the support of the super large domestic market. A large market can attract high-quality resources such as domestic and foreign capital, talent, technology, and data to gather, driving the rapid breakthrough and cost reduction of core technologies in the entire industry chain such as the "three electricity" system and intelligent driving, thereby expanding the market share of the new energy vehicle industry in the global market. It should also be noted that China's market has a vast amount of consumer generated data and rich application scenarios, which will further enhance the investment willingness of global capital, attract top scientists and engineers from all over the world to develop and establish research and development centers in China, and bring rare development opportunities for the intelligent economy and digital economy. The attractiveness of a super large scale market is not a static advantage, but a dynamically enhanced system advantage. In the short term, it manifests as the aggregation and integration of existing resource elements; In the long run, by developing new technologies and formats, higher demand for factor upgrades will be generated, thereby continuously strengthening the attractiveness of the market to advanced and high-quality production factors. The more fully and efficiently various production factors flow and are allocated, the smoother the economic cycle, and the more it can form a gravitational field on global resource factors. While gathering high-end global factors, it can also further promote domestic industrial upgrading and institutional innovation, forming a positive cycle of "factor convergence industrial upgrading consumption upgrading stronger attraction", thereby enhancing the endogenous driving force of the economy. Especially in fields with rapid technological iteration, the inclusiveness of ultra large scale markets is more prominent. The vast market space can effectively diversify investment risks, increase the willingness to allocate capital in the long term, and provide more stable expected returns for innovative projects with high uncertainty. Diversified and multi-level market demand will guide enterprises to increase research and development investment, optimize supply structure, and expand product spectrum, thereby continuously attracting domestic and foreign innovation resource linkage cooperation. The vitality of the Chinese market is reflected in the relentless trial and error and pursuit of innovative enterprises. The super large scale market is an accelerator for incubating new technologies and products, which can significantly shorten the industrialization and commercialization process of innovative achievements, thereby accelerating the transformation of old and new driving forces. Thanks to the vast depth of our country's market, new technologies and products can be quickly matched to initial users, achieving a breakthrough in "from 0 to 1" verification, and relying on economies of scale and scope, quickly diluting research and development costs, there is an opportunity to achieve sustained innovation from 1 to N. Especially independent innovation enterprises can rely on their large local user base to quickly complete technological iterations, continuously refine their business models, reduce the cost of innovation trial and error, and thus have the opportunity to achieve a leap from imitative innovation to original innovation. The vitality of our country's market lies in the continuous spiral from the demand side to the supply side, moving towards new and optimal directions. China leads the world in the development speed and popularity of mobile payments, e-commerce, live streaming e-commerce, etc. Relying on massive data and rich application scenarios, it has formed unique commercial advantages in fields such as artificial intelligence, 5G, and big data applications. From industry leaders to small and medium-sized enterprises, and then to individual entrepreneurs, a wide-ranging and multi-level competitive landscape has been formed. Various enterprises relying on digital platforms have significantly improved their response speed to personalized quality demands, further activating the potential of the consumer market. Many new business models with distinct characteristics and market prospects have not only achieved rapid growth, but also accumulated momentum to form an ecosystem that empowers millions of small and medium-sized merchants and creators. For example, relying on a large group of young consumers who prefer digital consumption, many new domestic brands have emerged in the fields of beauty, food, electronic products, etc. Live streaming e-commerce has also given rise to new professional forms related to instant retail supply chains such as anchors and operations, releasing strong economic vitality. A new round of technological revolution and industrial transformation is deepening, and new fields and tracks such as digital economy, intelligent economy, green economy, and silver economy are constantly emerging, providing historic opportunities for China to leverage its advantages in the super large market and promote high-quality development. To accelerate the formation of more economic development models driven by domestic demand, consumption, and endogenous growth, it is necessary to fully leverage the advantages of super large scale markets, continuously stimulate the potential of domestic demand, and form endogenous growth drivers. At the same time, although China has obvious market advantages, it also faces some challenges in the process of market development and construction, which must be objectively recognized and properly addressed. For example, local market segmentation and local protectionism can affect the overall scale effect and resource allocation efficiency of the market; The current contradiction between strong supply and weak demand is prominent, and the effective supply capacity still needs to be enhanced. Some industries have overcapacity and insufficient high-end and high-quality supply, which makes it difficult to meet the demand for consumption upgrading; There are still bottlenecks that constrain consumption in areas such as income distribution, market infrastructure, and coordinated regional urban-rural development. These factors all affect the further release of potential and burst of vitality in the large market. In this regard, comprehensive measures need to be taken from multiple aspects, such as institutional construction to enhance market inclusiveness, innovation driven to enhance supply-demand adaptability, further stimulate diversified consumption vitality and multi-level market potential, strengthen the radiation and attractiveness of China's market, and promote the transformation from a "big market" to a "strong market". Deepen the construction of a unified national market and expand domestic and international opening up. Accelerate the formulation and promulgation of regulations for the construction of a unified national market, with a focus on achieving uniformity in property rights protection, market access, standard certification, and regulatory enforcement, breaking down various hidden barriers, and ensuring the free and efficient flow of factors and goods throughout the country. Promote high-level institutional openness, align with international economic and trade rules with high standards, continuously optimize the business environment, maintain fair competition, protect intellectual property rights, expand the import of high-quality goods and services, host China Brand Day events, as well as major exhibitions such as the China International Import Expo and Consumer Expo, to make China's large market more inclusive, sustainable, and globally attractive. Promote the close integration of industrial chain innovation chain and continuously enhance the adaptability of supply and demand. Further strengthen the virtuous cycle of competition stimulating innovation and expanding the market through innovation, implement the "unveiling the list and leading the way" mechanism, organize scientific and technological research and development more guided by industrial and market demand, and make enterprises the main body of innovation decision-making and application of achievements. By leveraging the role of scenario driven innovation, we plan to open up a number of major application scenarios in fields such as energy transportation, healthcare, and urban governance, providing a broader demonstration space for cutting-edge technologies. Deepen the pilot reform of market-oriented allocation of factors, promote the standardized and healthy development of platform economy, further improve market mechanisms, and optimize market structure. Promote the upgrading of consumption quality and broaden the space for economic growth. The size of a super large market lies not only in its large population, but also in its abundant consumption potential, diverse levels, and innovative models. Multiple channels will be used to increase residents' income, implement plans to increase the income of urban and rural residents, promote the formation of an olive shaped distribution pattern, enhance residents' consumption ability, stabilize consumption expectations, and improve the consumption environment. Promote the upgrading and expansion of traditional consumption, accelerate the development of new consumption, and stimulate multi-level consumption and investment potential. Guided by green, digital, and intelligent transformation, we will cultivate new growth points such as smart homes, cultural and sports entertainment, and healthy elderly care, promote diversified service supply, strengthen education, medical care, elderly care, housing and other guarantees, and enhance the adaptability of the supply side to high-end demand. Cultivate and strengthen the green consumption market, improve the carbon emission rights and energy use rights trading market, and guide funds to invest in areas such as technological innovation, modern industries, and green transformation. Strengthen regional coordinated development and unleash multi-level market potential. Focusing on the high-quality development of regional markets, strengthening the innovation source role of Beijing Tianjin Hebei, Yangtze River Delta, Guangdong Hong Kong Macao Greater Bay Area, etc., accelerating the integration of scientific and technological innovation and industrial innovation in the Chengdu Chongqing and Yangtze River Midstream urban agglomerations, and promoting the characteristic development of county-level economy. further improve

Edit:Luoyu Responsible editor:Wang Xiaojing

Source:ECONOMIC DAILY

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