TITLE:
Study on the Reform and Power Enhancement Path of Industrial Economy in the Free Trade Zone under the New Development Pattern of Double Cycle
AUTHORS:
Anyu Wang, Ding Chen
KEYWORDS:
Industrial Economy, Free Trade Zone, Double Cycle
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.14 No.12,
December
10,
2024
ABSTRACT: Accelerating to formulate the new development pattern, in which the domestic cycle is the mainstay and the domestic and international cycles are mutually reinforcing, is the national-level strategy for China to achieve the first centenary goal, and then take advantage of the momentum to embark on a new journey to build a modern socialist country toward the second centenary goal. In addition, in the context of increasing domestic demand and deepening opening-up, the construction of the free trade zone (FTZ for short), as an important node connecting the international and domestic markets, will play an important role in promoting the formation of a new economic development pattern with “double cycle”. The main purpose of this paper is to study how China can realize the optimization and upgrading of economic structure and promote the sustainable development through the industrial economy reform of FTZ under the new pattern. According to the main results, we find that the main problems of the industrial economy of FTZs under the new double-cycle development pattern are inadequate planning and design, lack of endogenous impetus for reform and innovation, trade level to be upgraded, inadequate construction of project platforms, and insufficiently attractive business environment. In this regard, it is suggested that the FTZ should be led by digital reform to promote reforms in trade, transportation, capital, labor flow, and investment. At the same time, government should pay enough attention to the overlapping effect, accelerating the construction of the Belt and Road, and promoting the high-level integration of domestic and international markets. Through synergistic innovation, a new pattern of high-level opening-up and high-quality development will be formed.