Abstract

Internal and external coordinated development is the key to avoiding the middle income trap for our nation. Economic growth has had strong reliance on external demand for a long time. This no longer meets the needs of economic and social development in the new period. It is high time that we grasp the law of development between external and internal demand from strategic height and draft China's development strategy and reform path for mode transformation and structural change based on them in the new stage. Domestic demand is the stabilizer in the development of external demand and external demand is the booster in the development of domestic demand. Correctly handling the interaction between domestic demand and external demand needs not only the adherence to the comprehensive and dynamic strategic development view, but also lessons from international experience. There are two basic principles in expanding domestic demand, one being the combining of reasonable expectations with efforts to expand domestic demand; the other being the combining of effective supply with effective demand. There are also two basic principles in expanding external demand. One is the combining of efforts to stabilize foreign demand with efforts to actively expand foreign demand. The other is the combining of active promotion of the“going out”strategy and free trade area with the upgrading of industrial structure in China. In the foreseeable future, China would adhere to the open economic development policy of paying equal attention to both domestic and foreign demand and strive to expand domestic demand while actively absorbing external demand. Aside from theoretical research, this book also focuses on the practical and interactive relationships between domestic and external demand with consumption, trade in services, producer services, distribution of income and urbanization. The book offers useful advice for carrying out China's social reform plan and economic development policy and future development strategy in the future. By this the book has great realistic guiding significance for China's current situation.