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The Chinese government has published a set of general guidelines intended to outline the shape and structure of what it calls a “unified domestic market that is highly efficient, rules-based, fair for competition, and open” the state-controlled Xinhua news service reported.
The goals include “the efficient circulation and expansion of the domestic market, a stable, fair, transparent, and predictable business environment, a reduction of market transaction costs.”
A unified domestic market also will “boost sci-tech innovation and industrial upgrades and cultivate new advantages for participating in international competition and cooperation,” the guidelines said.
Under the guidelines, the government will make “efforts..to improve a unified property rights protection system, implement a unified market access system, and optimize a unified social credit system.”
The guideline emphasized promoting the interconnectivity of market facilities, including creating a modernized circulation network, improving the exchange of market information, and upgrading transaction platforms.
“China will work to develop a unified domestic market of productivity factors and resources, including land, labor, capital, technology, data, energy, and the environment,” Xinhua said.
The guidelines stressed the establishment of unified market regulatory rules, upgrading regulatory “capabilities,” strengthening controls on monopolies, and crackdowns on unfair competition.
The guidelines were issued jointly by the Communist Party’s Central Committee and the State Council.
TRENDPOST: The guidelines are purposefully vague, allowing the government to define the general guidelines according to the details that officials and regulators want to put under them.
More broadly, the guidelines point to strengthening China’s strategy of a dual circulation economic strategy that will develop its domestic consumer economy alongside its export-driven manufacturing sector.
We have documented China’s strategy in “China Announces Dual Circulation Economic Policy” (9 Sep 2020), “Foreign Investors Rush Into China” (1 Dec 2020) and “In China, Domestic Brands Outpace Western Icons” (29 Jun 2021), among other articles.