With the continuous escalation of US-Sino trade frictions and the on-going COVID-19 pandemic, a global economic recession seems inevitable. Faced with a series of risks and uncertainties, such as the shrinking of developed markets, the insufficient size of emerging markets, trade protectionism, etc., it is imperative to adopt a new development strategy emphasizing the dominant role of internal circulation and the complementarity of both the internal and external circulations to sustain China’s long term economic development in its long term effort of the great national rejuvenation. Based on China’s 40-years’ development achievements after the economic reforms and opening-up, this article discusses the current domestic and global economic situations, and analyzes why China should take the domestic economic cycle as the mainstay and exploit the complementarity of both the internal and external circulations before making some policy recommendations.