Drawn from the holistic and dynamic views contained in traditional Chinese philosophy and taking the dialectical contradictions in international firms as the central concern， it added the element of outward gain to the existing framework. It explored the interweaving of enabling and constraining relations to form transitive triads and cyclic triads， which are further combined to form a quadrangular cycle characterized by negative feedback， thus unpacks the source of stability to ensure the independency and controllability of domestic circulation. On the basis of diachronic analysis， it identified the international circulation as being both contradictory to and united with domestic circulation. It also proposed a dynamic process model reflecting the independent and interconnected functions of the dual circulations. Further， inspired by the perspective of dynamic systems， it extended composition-based view to a dynamic-composition view， and illustrated the mechanism governing the circulating system operating in an 8-shape trajectory. It makes an attempt to construct a distinctive Chinese-style management theory， and deepens the understanding of the system as evolving from the current state of “focusing on domestic circulation” to “featuring positive interplay between domestic and international economies”. It also provides a theoretical rationality for globalizing firms to deal with the duality of domestic and international circulations and find out their distinctive path of development.