Invest in people to boost consumption

The Chinese government listed "vigorously boosting consumption and investment returns and stimulating domestic demand" as a major task for 2025.

The key lies in investing in people. Aggregate social demand is the starting point and driving force of economic growth, with consumption being the core, in which aspect China's population of 1.4 billion constitutes a superlarge market advantage. It is therefore necessary to enhance supply levels through product and service innovation. Additionally, the consumption capacity of more people is restricted because of income limitations and insufficient social security coverage.

That's why the Government Work Report this year calls on placing greater emphasis on benefiting people's livelihoods, promoting consumption, and enhancing future potential, while effectively improving the efficiency of fund utilization. It also aims at increasing residents' incomes through multiple channels, promoting income growth and reducing the burden on middle- and low-income groups, and improving the normal wage growth mechanism for workers.

The report proposes developing new quality productive forces and promoting the integrated development of technological innovation and industrial innovation. To develop new quality productive forces and build a modern industrial system, China must invest heavily in human capital, enhance people's quality and skills, and provide a steady stream of talent for scientific research and industrial upgrading.

The report proposes rejuvenation of the country by adhering to innovation-driven development, and advancing the integrated development of education, technological innovation, and talent cultivation. It makes systematic arrangements for accelerating the construction of a high-quality education system and comprehensively improving the quality of the talent pool.

Consumer demand is the starting point of growth, while human innovation vitality is the driving force of sustained growth. Therefore, it's necessary to invest in people to maintain social fairness and ensure people's livelihoods. Only in this way can the nation effectively reap demographic dividends and talent dividends, achieving sustainable, high-quality, and inclusive development.

21ST CENTURY BUSINESS HERALD