The Adjustment of Domestic Capital Layout in China under the Background of “Dual Circulation”

Abstract

In recent years, China's economic development pattern has gradually changed to a major domestic circulation with domestic and international dual circulation promoting each other. At the same time, opposition from the West to the outward transfer of industrial chain has been growing, and the new normal under the COVID-19 pandemic has also caused a great impact on the original economic development model. Based on this background, this paper analyzes the adjustment direction and path of China's domestic capital distribution, finds potential problems and puts forward relevant suggestions. This paper uses comparative research method, combines qualitative and quantitative methods, carries out horizontal comparison within China, focuses on the study of western China, finds and analyzes the capital disadvantages of western China from multiple dimensions, and puts forward policy suggestions for the financial development of western China based on advanced experience at home and abroad. Finally, this paper concludes: under the background of dual circulation, the Chinese government should vigorously promote the construction of financial institutions in western China to attract financial talents, promote local financing, improve local people's livelihood and enhance the level of opening to the outside world, so as to promote the construction of an open, inclusive, standardized and international financial service system.