Opinion | Why China is still struggling to ‘invest in people’
To boost demand, Beijing must upend its long-held mantra of production over livelihoods and investment over consumption
As 2026 dawns, China has signalled a renewed crusade: persuading its citizens to spend more, for their own benefit and for the country’s. Yet history offers a cautionary tale. China’s leaders have long harboured an ambivalent relationship with consumption as a growth engine, instead favouring production and investment.
This time, though, the signals suggest a deeper resolve.
His remarks come as China’s leadership puts the finishing touches to the next five-year plan, in which expanding domestic demand concerns “not only economic stability but also economic security”.
At last month’s Central Economic Work Conference, top leaders called for investment in both physical assets and human capital. It has now become a buzzword in official media, heralding potential seismic shifts in economic philosophy. To grasp the weight, we need to rewind to 1949.