Opportunities and challenges facing China’s economic “external circulation”

At present, China’s external circulation is facing opportunities such as the diversification of foreign trade and investment and the opening of a multi-level development pattern with the Regional Comprehensive Economic Partnership. At the same time, challenges brought about by the US Indo-Pacific Economic Framework and the economic trends of Japan and ASEAN are also rising. Therefore, in the face of an increasingly complex international environment and various challenges, China must find new approaches to expand the effective means of China’s external circulation. To accomplish this, China should continue to adjust its relationship with the US and keep the scale of China–US trade relatively stable. In addition, China should actively expand the space for the development of foreign trade. © 2022, The Institute of International and Strategic Studies (IISS), Peking University.