Faced with increased measures by the U.S. to impede China’s economic growth and slow down its technological development, China is moving to reinforce the momentum of its domestic market in order to maintain a high level of growth during the continued Covid pandemic. Extensive measures have been taken to increase financing for infrastructure as well as increased support to small- and medium-sized enterprises. The Chinese government has also announced a concerted program of tax relief aimed at keeping the SMEs operating without heavy losses.
Other measures are being taken to increase the rate of circulation by building new high-speed rail lines and increasing the speed on already existing main high-speed lines, creating a more rapid transport of people and products in the market.
On May 18, the National Development and Reform Commission, China’s main planning body announced extensive measures for creating a truly unified market. In the “dual circulation” model that is now in place in China, the huge domestic Chinese market becomes the main engine for China’s economic growth, and a catalyst for expanding the external growth factors..
