Beijing has introduced a new 'invest in people' slogan as part of its 15th five-year plan proposal, aiming to stimulate domestic demand by bolstering investments in welfare, pensions, education, and public services. Analysts view this as a rethink of economic strategy to address structural challenges like weak domestic demand and persistent deflationary pressures.
Beijing's recent policy meeting reaffirmed the 'invest in people' imperative, first raised in the Communist Party's October recommendations for the 15th five-year plan, which sets a goal of fostering the comprehensive development of the people. A readout from the meeting stated that the country must combine investment in physical assets with investment in people, while acknowledging structural economic challenges, including weak domestic demand and persistent deflationary pressure.
Tang Dajie, a senior researcher at the China Enterprise Institute think tank in Beijing, said the slogan reflects Beijing's focus on boosting consumption, as well as more holistic efforts to improve people's livelihoods. 'It started with addressing weak consumption but has evolved into full development for all people,' Tang said. 'If people are well taken care of, there will be no weak consumption. The only question is how to realise that.'
Analysts expect Beijing to strengthen investments in welfare, pensions, education, and other public services to unleash domestic demand potential. This shift is seen as a strategic pivot from traditional infrastructure spending toward human capital development, aimed at countering economic slowdown and enhancing long-term growth sustainability.