The key to establishing a new development paradigm is to improve the connectivity of production，distribution，circulation and consumption，so as to smooth the overall economic circulation. Digital economy can contribute to a smoother economic circulation through two mechanisms：the digitalization of circulation and circulation of the digital industry. On the one hand，digital technology accelerates its penetration into various fields of economy and society as well as production，exchange （circulation） and consumption links，so as to strengthen the guidance of information flow to material and capital flow，and to improve economic circulation. On the other hand，the industrial ecosystem of digital technology covers a wide range of areas. The circulation within such an ecosystem can form a considerable industrial cycle itself and provide material and technical support for the development of digital economy. At present，the role of these two mechanisms is restricted by the lagging progress of the industrial Internet and other new infrastructure，the risk of disruption of the ICT industrial and supply chain，the structural adjustment of employment，and the imbalance of distribution. Recommendations are made to accelerate new infrastructure development，strengthen ICT’s core technology R&D and upgrade digital skills.