Abstract: As the driving vehicle of the new round of technological revolution and industrial revolution, digital new infrastructure plays an important role in the national economic circulation. Based on the dual perspectives of supply and demand, this paper explores the theoretical logic of the influence of new digital infrastructure on the circulation of domestic value chain. The findings show that digital new infrastructure can significantly promote domestic value chain circulation. Under the supply-side driving effect, digital new infrastructure promotes the domestic value chain circulation by promoting technological innovations; while under the demand-side driving effect, consumption upgrading is the intervening mechanism to promote the domestic value chain circulation. The result of the heterogeneity study shows that in the technology-intensive industries and labor-intensive industries, the positive impact of new digital infrastructure on domestic value chain circulation is more significant. While in the regions with higher degree oflabor market segmentation and consumer marketsegmentation, the empowering effect of new digital infrastructure will be weakened. The result of the expansion analysis shows that the new digital infrastructure can help to increase theadded value of the domestic industrial value chain, and that this effect is particularly prominent in the central and western regions. The above research reveals that we should attach importance to the basic and overall role of new digital infrastructure in building a new development pattern of industrial chain, accelerate the construction of new digital infrastructure by industry, by region and step by step, and improve the deployment quality and efficiency of new digital infrastructure.

Key words: new digital infrastructure, domestic value chain circulation, technological innovation, consumption upgrade