To effectively coordinate the expansion of domestic demand and deepen supply-side structural reforms, it is essential to create a higher level of dynamic balance where demand stimulates supply and supply creates demand, thereby achieving a virtuous cycle in the national economy. To better promote the matching of supply and demand, the cultivation and development of new qualitative productive forces should be organically combined with the growth of new types of consumption. This can be achieved by improving institutional mechanisms tailored to local conditions for the development of new qualitative productive forces and by perfecting long-term mechanisms for expanding consumption. By removing bottlenecks and blockages between various stages from production to consumption, a higher level of dynamic balance between supply and demand and a virtuous cycle in the national economy can be formed, driving the economy to achieve qualitative improvement and reasonable growth in quantity.

New qualitative productive forces are advanced forms of productive quality that arise from revolutionary breakthroughs in technology, innovative allocation of production factors, and in-depth transformation and upgrading of industries. New types of consumption refer to a series of new business forms, models, scenarios, and services in consumption that are supported by the innovation and application of the internet, digital technology, artificial intelligence, and other new generations of technologies. The development of new qualitative productive forces and the expansion of new types of consumption are inter-promoting and synergistic. On one hand, the efficient combination and optimization allocation of factor resources in the production field can better transform scientific and technological achievements into real productive forces, giving rise to more new industries, business forms, and models, and driving the upgrading of consumption quality. On the other hand, as an important link in the national economic cycle, consumption, through the creation of new application scenarios and the promotion of scenario innovation, can lead to high-quality supply in turn, playing an "accelerator" role in the development of new qualitative productive forces. Achieving a virtuous interaction between the two is conducive to promoting an efficient cycle of investment-production-consumption, and promoting continuous improvement in production efficiency and quality, as well as the expansion and upgrading of consumption.

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Coordinating the relationship between the two to serve the overall development

According to Marx's theory of social reproduction, the economic cycle includes four links: production, distribution, exchange, and consumption. These four links need to be organically connected and coordinated to promote the smooth operation of the entire economic cycle. China's economy has entered a stage of high-quality development, and it is necessary to grasp the relationship between developing new qualitative productive forces and expanding new types of consumption, coordinate the expansion of domestic demand and the deepening of supply-side structural reforms, and promote the economic development to achieve quality change, efficiency change, and power change.

The internal requirement for promoting high-quality economic development. High-quality development is the primary task for comprehensively building a modern socialist country. Whether it is deepening supply-side structural reforms or expanding effective demand, high-quality development should be the goal. From the perspective of production and consumption, developing new qualitative productive forces promotes technological and product innovation from the supply side, leading to the upgrading of consumption tracks; expanding new types of consumption promotes a close connection between consumption and production from the demand side, allowing consumer behavior and preferences to be fed back to producers, and promoting continuous updates and iterations of production technology, processes, and equipment. Overall, new qualitative productive forces provide more products, broader choices, and better quality for consumption transformation, while consumption transformation provides a demand foundation, application space, and market momentum for the development of new qualitative productive forces. Their mutual promotion and joint progress provide strong driving force and support for achieving high-quality development.

An effective way to accelerate the construction of a new development pattern. The key to constructing a new development pattern lies in the unobstructed economic cycle, which requires promoting the optimal combination of various production factors and promoting the construction of production relations adapted to the development of new qualitative productive forces. Faced with the increasing adverse effects brought about by changes in the external environment and the insufficient effective domestic demand, the organic combination of developing new qualitative productive forces and expanding new types of consumption, forming a virtuous interaction and dynamic matching of "double upgrade" between consumption and industry, is not only conducive to giving full play to the advantages of the strong domestic market and building a modern industrial system, enhancing the internal driving force and reliability of the domestic large cycle, but also conducive to further enhancing China's competitiveness in participating in international industrial division of labor and cooperation, and continuously improving the quality and level of the international cycle.

The practical need to meet people's new expectations for a better life. Consumption is the ultimate demand, which is both the ultimate goal and driving force of production and a direct manifestation of people's needs for a better life. In the new era, the main contradiction in Chinese society has been transformed into the contradiction between the people's growing needs for a better life and unbalanced and insufficient development. People's needs for a better life are reflected in the personalized and diversified trend of consumption demands. Consumers' demand for products with characteristics such as creativity, quality, green, digital, and health is increasing. This requires social production to provide more high-end, intelligent, and green high-quality products and services, promote the optimization and upgrading of industrial and demand structures, create a richer and more solid material foundation for the people, and continuously enhance the people's sense of gain, happiness, and security.

A deep understanding of development advantages and weaknesses

China's advantages such as its super large-scale market, complete industrial system, and efficient and smooth circulation system have created a good foundation and favorable conditions for the smooth circulation of supply and demand. From the perspective of market size, China has a population of more than 1.4 billion and a middle-income group of more than 400 million. The per capita gross domestic product exceeds 12,000 US dollars, entering the ranks of upper-middle-income countries. With the improvement of residents' income levels, the trend of consumption quality and upgrading is becoming more and more obvious, and there is a broad space and huge potential for the growth of new types of consumption demands. From the perspective of industrial support, China's industrial system is complete, and its structure continues to optimize. It has the world's largest and most complete manufacturing system, with a steadily improving level of industrial chain and supply chain collaboration, providing strong support for promoting industrial innovation, maintaining industrial security, and expanding development space. From the perspective of institutional guarantees, the construction of a unified national market is steadily advancing, and the basic institutions of the market economy such as property rights protection, market access, fair competition, and social credit are continuously improving. The reform of factor marketization continues to deepen. Since the 18th National Congress of the Communist Party of China, China's circulation system construction has achieved fruitful results, the national backbone circulation network is increasingly sound, new business forms and models in the circulation field continue to emerge, and the institutional environment for the circulation of goods and factors has been further improved.

At the same time, it should also be seen that there are still some blockages and blockages in the production and consumption links and their circulation process in China. From the perspective of the demand side, the income level and consumption willingness of consumers directly affect the demand for new types of consumption products and services. The operation of the economy faces some difficulties, and consumer purchasing behavior is more cautious. From the perspective of the supply side, the supply capacity of some high-quality consumer products and services is insufficient, the proportion of brands with independent intellectual property rights in export products is relatively low, the homogenization tendency of medium and low-end products is obvious, the development level of the service industry is still lagging behind the international leading level, and the ability to innovate in scenarios is insufficient. From the perspective of circulation conditions, there are institutional and mechanical obstacles in the domestic large cycle, some places still have market segmentation, the free flow of goods and factors faces hidden barriers, the circulation infrastructure is not sound, the layout is not balanced, and the level of informatization is not high, which hinders the leap and upgrading of industrial levels and the expansion and upgrading of consumption. It is necessary to focus on optimizing supply and expanding effective demand to further smooth the economic cycle.Deepening Reforms to Promote a Higher Level of Dynamic Balance

On the new journey, it is essential to organically combine the development of new quality productive forces with the expansion of new types of consumption. By further comprehensively deepening reforms, we can accelerate the cultivation of advanced productive forces and increase effective consumer demand. With a well-established system and comprehensive facilities, we can support and ensure the free and orderly flow of goods and factors, achieving a two-way upgrade of consumption structure and industrial structure.

Improve the long-term mechanism for expanding consumption. Continuously optimize the mechanism for promoting a virtuous cycle in employment, income distribution, and the entire chain of consumption. Focus on boosting consumption to expand domestic demand, increase residents' income through multiple channels, enhance the consumption capacity and willingness of middle and low-income groups, establish and improve mechanisms for reasonable wage growth, and refine compensation incentive mechanisms. Adhere to the main body of distribution according to labor, coexist with various distribution methods, build a coordinated system of primary distribution, redistribution, and the third distribution, and improve the multi-level social security system. Optimize public services and the consumption environment, strengthen consumer rights protection, so that residents have stable income to consume, no worries to dare to consume, and a superior consumption environment to gain a strong willingness to consume. Cultivate and expand new types of consumption such as digital, green, and healthy, accelerate the formation of new growth points in the fields of smart home, cultural and entertainment tourism, and sports events, build diversified, integrated, and experiential consumption scenarios, explore new models of online and offline linkage, and continuously improve the level of consumption.

Improve the system and mechanism for developing new quality productive forces. In line with the trend of residents' consumption upgrading, develop new quality productive forces as an important means, continuously improve the adaptability of the supply system to the demand structure, and better meet consumers' diverse needs. First, strengthen the construction of independent innovation capabilities, fight the battle for the advancement of industrial foundations and modernization of industrial chains, promote the industrial chain value chain from the middle and low end to the middle and high end, and expand the production capacity and supply level of high-end products and services. Second, grasp the development trends and opportunities of new generation information technology, aim at key areas of strategic emerging industries and future industrial development, continuously launch new products and services, and use modern digital information technology to transform traditional industries through digital transformation, networked collaboration, and intelligent upgrading. Third, strengthen the construction of product technology standards and service standards for new types of consumption, accelerate the improvement of the quality management system for the entire process from production and manufacturing to marketing services, and promote the construction of trademark brands to lead new consumption trends.

Promote the construction of a modern circulation system. Promote efficient and unimpeded modern commercial circulation and modern logistics, improve the adaptability of logistics services to supply and demand, promote close connection between production and consumption, and better serve new industries and cultivate new momentum. According to different types of commercial circulation nodes such as foreign trade-led, consumption gathering, industrial support, and commodity distribution, highlight characteristics, classify planning, and reasonable layout to improve logistics efficiency and reduce circulation costs. Optimize the layout of modern comprehensive transportation infrastructure networks, accelerate the construction of hubs such as railways, highways, water transport, and aviation, make up for the shortcomings of urban and rural terminal logistics services, promote the digital transformation and intelligent upgrading of transportation infrastructure, and cultivate a group of commercial logistics backbone enterprises with brand influence and international competitiveness. Promote in-depth integration of logistics with production manufacturing and commercial circulation industries, and accelerate the formation of a modern logistics network that is interconnected, safe, and efficient.

Accelerate the construction of a unified national market. Accelerate the construction of an efficient, standardized, fair competition, and fully open unified national market to improve the resilience and flexibility of the economic system. First, improve the market access system, orderly relax restrictions on access to the service industry, optimize the market access environment for new formats and fields, and promote the application of new technologies and new products in key areas of strategic emerging industries and future industries with policies, regulations, technical standards, testing and certification, and data systems. Second, accelerate the construction of a new mechanism for coordinated, orderly competition, green coordination, and shared win-win regional coordinated development, guide localities to base on their resource endowment, industrial foundation, and scientific research conditions, and promote the orderly and gradient transfer of industries domestically and the development of manufacturing clusters. Third, promote the market-oriented reform of factors such as land, labor, capital, technology, and data, improve the efficiency of factor allocation, improve the unified and standardized human resource market system, and accelerate the cultivation of a national integrated data market to provide talent and technical support for the development of new quality productive forces and the expansion of new types of consumption.