Abstract: A deep reflection on the adverse impact of the international large-scale circulation on China’s development in the central and western regions is an important prerequisite for the implementation of the new strategy of “the main body (domestic) and a dual-circulation (domestic and international)”.A large-scale domestic circulation (mutual markets) formed by the horizontal labor division among different regions helps change the unbalanced distribution of industries’ being highly concentrated in the southeast coastal areas so as to promote an in-depth development of domestic economic integration in space.Such is the role,one of the three major engines of the domestic circulation that China’s central and western development strategy is bound to play.In view of this,a national strategy of balanced development of the high-end value chain is of necessity to be adopted,i.e.to transfer some suitable new industries to the central and southwest of “the Hu Line”.The large-scale domestic circulation and high-quality development are unprecedented new historical opportunities for China’s development in the central and western regions.We can learn from the historical experience of the United States at the national level,and the development experience of the Nordic countries including Switzerland at the regional level.In the development of the western region,“expanding high-level opening up” means to establish “good trade” and “high-quality trade” under the framework of the “New Silk Road Economic Belt”,build central cities in that region into international innovation centers of core technology,thus becoming leaders and strong growth poles of the “New Silk Road Economic Belt”.

Key words: domestic circulation, China’s western development, the Hu Line, belt and road initiative, value chain