Xi, addressing the Council of Heads of State of the SCO grouping via video link, said that China is speeding up efforts to foster a new development paradigm with domestic circulation as the mainstay, and domestic and international circulations reinforcing each other

Beijing: China cannot be separated from the world in achieving development as both need each other for prosperity, President Xi Jinping said on Tuesday as he highlighted the new development model being pursued by the world's second-largest economy.

Xi, addressing the Council of Heads of State of the SCO grouping via video link, said that China is speeding up efforts to foster a new development paradigm with domestic circulation as the mainstay, and domestic and international circulations reinforcing each other.

China cannot be separated from the world in achieving development, and the world also needs China for prosperity, he said.

"New mechanisms are being put in place to build an open economy of a higher standard. China will remain committed to a win-win strategy of opening-up," Xi said, adding that Beijing will seek development impetus from the world and contribute more to the world with its own development.

"We welcome all parties to capitalise on China's development opportunity and make active endeavours to deepen cooperation with China," the Chinese president said.

On October 31, Xi, in an article published in Qiushi's, the ruling Communist Party of China's (CPC) official journal, wrote that China can no longer rely on its previous economic development model of depending on global exports but build self-controlled, safe and reliable domestic production and supply system in fields concerning national security.

Last month's plenary session of the CPC, headed by Xi, adopted his proposals for the formulation of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.

While the 14th Five-Year plan envisages massive overhaul of the country's domestic market to boost consumption in order to reduce China's reliance on shrinking exports markets, the Vision 2035 visualises a long-term plan, reflecting the development vision of Xi.

"We shouldn't and couldn't simply repeat the previous model, but should strive to shape new industrial chain to enhance technological innovation and import substitution, which is the focus of deepening supply-side structural reforms and key to achieving high-quality development," Xi said in his article.

China's status as a world's factory has been affected by declining global markets and US President Donald Trump's trade war as well his move to ban Chinese tech firms like Huawei and TikTok. The US recently clamped restrictions on exports of semiconductor chips to China, deepening the technology conflict between the top two world economies.

The SCO founding members are China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. India and Pakistan were admitted into the grouping in 2017.

The SCO summit over video link is being organised by Russia, which will also host a virtual summit of BRICS, (Brazil, Russia, India, China, South Africa) leaders on November 17.

India is also set to host the virtual meeting of the SCO Heads of the Government on November 30 in which Chinese Premier Li Keqiang is expected to take part.