In the unprecedentedly dramatic situation, China faces the new challenges of escalating Sino-US trade frictions, the stagnation of multilateral economic and trade cooperation and the risk of rupture of traditional global value chains. The huge market, the deep integration into the global value chain, the obvious industrial agglomeration chain and the low transaction cost are the advantages and foundation of China’s dual circulation development pattern. The Chinese government clearly proposes to accelerate the formation of a new development pattern in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement. The focus of the internal circulation should be done by: (1) promoting the marketization of production factors with the principle of neutrality; (2) building a new pattern of comprehensive opening and promoting trade liberalization; (3) improving the domestic business environment and promoting investment facilitation; (4) promoting domestic consumption with positive fiscal policy and sound monetary policy; (5) promoting industrialization, urbanization and information integration; (6) promoting regional economic integration through development of metropolitan areas and urban agglomerations. For the external circulation, the first major focus is to vigorously promote the Belt and Road Initiatives to the ground, and the second major focus is to develop regional economic partnerships. Meanwhile, it is necessary to consolidate the central node position of China’s global value chain, focus on the development of digital trade, and take technological innovation and digital transformation as the main grasp.