China’s concept of strategic autonomy is about dual circulation

##plugins.themes.bootstrap3.article.sidebar##

Downloads

Download data is not yet available.
How to Cite
García-Herrero, A. (2023). China’s concept of strategic autonomy is about dual circulation. ICE, Revista De Economía, (930). https://doi.org/10.32796/ice.2023.930.7566
Alicia García-Herrero
Senior Research Fellow at Bruegel
España

##plugins.themes.bootstrap3.article.main##

DOI https://doi.org/10.32796/ice.2023.930.7566
Published: Mar 31, 2023
Issue: No. 930 (2023): Autonomía estratégica
Abstract

China’s dual circulation could be considered a form of strategic autonomy but it differs in many aspects. First and foremost, China’s dual circulation has as ultimate objective China’s self-reliance or, in other words, China’s reduced dependence from Western imports, specially technology or any other which can create bottlenecks for the Chinese economy. While the EU’s concept of strategic autonomy also pays attention to the resilience of supply chains, its ultimat objective is not self-reliance, as it focuses on co-dependence, as has been clarified by the addition «open» strategic autonomy. Finally, China’s dual circulation also aims at fostering export markets beyond China’s already very high share of global exports which inevitable increases the world dependence on China.

##plugins.themes.bootstrap3.article.details##

Keywords:
dual circulation strategic autonomy, self-reliance, exports, tech competition
References

Cision. (2021, June 22). China Makes Policy Changes to Curtail Crude Steel Production. Beroe Inc. https://www.prnewswire.com/news-releases/china-makes-policy-changes-to-curtail-crude-steel-production-beroe-inc-301317109.html (accessed August 10, 2021).

Damen, M. (2022). EU strategic autonomy 2013-2023: From concept to capacity. European Parliamentary Research Service (EPRS).

European Council. (2022, March 11). The Versailles declaration, 10 and 11 March 2022 [Press release]. Retrieved on March 23, 2023 from https://www.consilium.europa. eu/en/press/press-releases/2022/03/11/the-versailles-declaration-10-11-03-2022/

Ezell, S. (2021). Moore’s Law Under Attack: The Impact of China’s Policies on Global Semiconductor Innovation. Information Technology and Innovation Foundation. https://itif.org/publications/2021/02/18/moores-law-under-attack-impact-chinas-policies-global-semiconductor (accessed August 10, 2021).

García-Herrero, A., Marbach, T., & Xu, J. (2018). European and Chinese Trade Competition in Third Markets: The Case of Latin America (Bruegel Working Paper No. 6). https://www.bruegel.org/wp-content/uploads/2018/06/WP-2018-06_-060618.pdf (accessed August 14, 2021).

García-Herrero, A., & Martínez Turégano, D. (2020, November 27). Europe is losing competitiveness in global value chains while China surges. Bruegel-Blogs.

García-Herrero, A., & Weil, P. (2022). Lessons for Europe from China’s quest for semiconductor self-reliance (Bruegel Policy Contribution No. 20/22).

García-Herrero, A., & Xu, J. (2016). The China-Russia Trade Relationship and its Impact on Europe (Bruegel Working Paper No. 4). https://www.bruegel.org/wp-content/uploads/2016/07/WP-2016_04-180716.pdf (accessed August 14, 2021).

Hanada, Y. (2019, July 31). China's Solar Panel Makers Top Global Field but Challenges Loom. Nikkei Asia. https://asia.nikkei.com/Business/Business-trends/China-s-solar-panel-makers-top-global-field-but-challenges-loom (accessed August 10, 2021).

He, L. (2020, November 25). Accelerate the Construction of the New Development Pattern with Domestic Circulation as the Main Body and Domestic and International Dual Circulation Promoting Each Other (Studying and Implementing the Spirit of the Fifth Plenary Session of the 19th Central Committee of the Party). People’s Daily. http://politics.people.com.cn/n1/2020/1125/c1001-31943814.html (accessed August 2021).

IC Insights. (2021). Sales of Logic ICs Account for Largest Share of China’s IC Market in 2020. Design & Reuse. https://www.icinsights.com/data/articles/documents/1347.pdf (accessed August 10, 2021).

Jinping, X. (2020a, May 14). Chairs the Meeting of Standing Committee of the Political Bureau of the CPC Central Committee [Meeting]. Xinhua Net. http://www.xinhuanet.com/politics/leaders/2020-05/14/c_1125986000.htm (accessed August 10, 2021).

Jinping, X. (2020b, August 24). Speech at the Symposium of Experts in Economic and Social Fields [Speech]. Xinhua Net. http://www.xinhuanet.com/politics/leaders/2020-08/24/c_1126407772.htm (accessed August 10, 2021).

Keju, W. (2021, March 25). More R&D Tax Incentives in Pipeline. China Daily. http://global.chinadaily.com.cn/a/202103/25/WS605bd982a31024ad0bab16d2.html (accessed August 10, 2021).

MIIT-CAC. (2021). Guidelines for Outward Investment Cooperation in the Digital Economy. http://images.mofcom.gov.cn/hzs/202107/20210723142119100.pdf (accessed August 10, 2021).

MOFCOM. (2021a, February 10). The Ministry of Commerce Announces Several Policies to Streamline ‘Dual Circulation’. Xinhua Net. http://www.xinhuanet.com/fortune/2021-02/10/c_1127089178.htm (accessed August 10, 2021).

MOFCOM. (2021b). The Ministry of Commerce Issues a Notice on Building a New Development Pattern and Stabilizing Foreign Investment. Ministry of Commerce of the People’s Republic of China. http://www.mofcom.gov.cn/article/ae/ai/202103/20210303041579.shtml (in Chinese) (accessed August 10, 2021).

MOFCOM. (2021c). Notice of the Ministry of Commerce on Printing and Distributing the ‘Fourteenth Five-year Plan for Business Development’. Ministry of Commerce of the People’s Republic of China. http://www.mofcom.gov.cn/article/guihua/202107/20210703174101.shtml (accessed August 10, 2021).

NDRC. (2020). Guiding Opinions on Expanding Investment in Strategic Emerging Industries, Cultivating and Growing New Growth Points and Growth Poles. https://www.ndrc.gov.cn/xxgk/zcfb/tz/202009/t20200925_1239582.html (accessed August 10, 2021).

NDRC. (2021a). The Fourteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of the Long-term Goals for 2035. https://www.ndrc.gov.cn/xxgk/zcfb/ghwb/202103/P020210323538797779059.pdf (accessed August 10, 2021).

NDRC. (2021b). The Fourteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of the Long-term Goals for 2035. Chapter 4. https://www.ndrc.gov.cn/xxgk/zcfb/ghwb/202103/P020210323538797779059.pdf (accessed August 10, 2021).

NDRC. (2021c). Plan to Promote Deep Integration and Innovative Development of the Logistics and Manufacturing Industry. https://www.ndrc.gov.cn/xxgk/zcfb/tz/202009/P020200909333031287206.pdf (accessed August 10, 2021).

State Council. (2015). Notice about Issuing ‘Made in China 2025’. http://www.gov.cn/zhengce/content/2015-05/19/content_9784.htm (accessed August 10, 2021).

US-China Economic and Security Review Commission. (2016). Transcript of Hearing on China’s 13th Five-year Plan. https://www.uscc.gov/sites/default/files/transcripts/April%2027,%202016%20Hearing%20Transcript_0.pdf (accessed August 10, 2021).