BEIJING: China is navigating a critical shift in its strategy to expand domestic demand, moving beyond short-term stimulus measures to focus on structural “core levers”, including income, wealth distribution and social security, according to a senior public finance economist.
“Measures to improve the consumption environment or organise promotional campaigns are helpful in the short run.
“But what determines consumption in the long term are people’s income, their wealth accumulation and a robust social safety net,” said Lin Shuanglin, a professor of economics at Peking University and associate director of Peking University HSBC Business School Think Tank.
Lin’s insights come as China enters the first year of its 15th Five-Year Plan (2026-30). The nation’s economic trajectory is defined less by headline growth figures and more by a move toward greater underlying stability and balance.
The Finance Ministry has signalled a proactive stance for 2026. Vice-Minister of Finance Liao Min said recently that fiscal spending will continue to expand on the basis of last year’s proactive policy, with a greater share of resources directed toward investing in people, including boosting consumption, and strengthening livelihood protection. — China Daily/ANN
