Liu Wei: Industrial Chain and Supply Chain Should Not Be Interrupted or Blocked

The construction of a modern economic system, as proposed by the CPC,means to drive the transformation of development model with in-depth supply-side structural reform as the mainstay. To drive the supply-side structural reform, it is necessary to create new growth strength by constructing a new development paradigm with domestic and international circulations reinforcing each other. Supply chain and industrial chain are important links in this regard and they are critical to smooth circulation of the national economy.

We have taken two main aspects into consideration. One is the baseline thinking, i.e., the chain shall not be disconnected, and the circulation of entire national economy notinterrupted or blocked. Our economic circulation could sustain impacts of international and domestic challenges, including COVID-19 epidemic and US-led western countries’ restrictions. That is the baseline. More importantly, we should elevate the level of industrial chain and supply chain through innovation. High level unblocked circulation of the industrial chain and supply chain is the market foundation for large economic circle. The domestic circulation cannot continue without smooth circulation of the industrial chain and supply chain. Elevated industrial chain and supply chain requires stronger competitiveness through technological innovation. Besides, institutional innovation should be in place to perfect the market mechanism, improve relationship between government and market, to forge integrated market circulation.

Dr. Liu Wei, President of Renmin University of China, Theoretical Economist