“Speeding up the construction of its large domestic circle as main form，promote a new structure of domestic and international dual circulation development” is the road of development and transformation chosen by China under the background of economic slowdown. Based on the analysis of external economic environment and various domestic shock superposition factors that may weaken China’s economic growth in short-term，this paper interprets the inevitable trend，theoretical logic and practical challenges of the development of “dual circulation” from the growth logic under the “demographic transition”，in order to analyze how China can break the path dependence on the international circulation and shift to the “dual circulation”. China must increase labor share and promote consumption through domestic structural reform；build a circulation system with domestic circulation as the main body by the synchronous improvement of human capital and innovation efficiency；deepen the Belt & Road Initiative，and actively promote high-level opening up to the world and implement the “dual circulation” strategy.