To boost demand, Beijing must upend its long-held mantra of production over livelihoods and investment over consumption.<\/b>
\nAs 2026 dawns, China has signalled a renewed crusade: persuading its citizens to spend more, for their own benefit and for the country\u2019s. Yet history offers a cautionary tale. China\u2019s 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.
The gravity of this pivot is underscored by Qiushi, the Communist Party\u2019s flagship publication, which last month published an article based on President Xi Jinping\u2019s remarks on consumption from 2015 to 2025. Xi was quoted as saying that insufficient domestic demand is the most prominent challenge facing the economy, and that boosting consumption is not \u201ca temporary fix but a strategic choice\u201d.
His remarks come as China\u2019s leadership puts the finishing touches to the next five-year plan, in which expanding domestic demand concerns \u201cnot only economic stability but also economic security\u201d.
In another sign that Beijing aims to make household consumption a strategic imperative, leaders have begun promoting a phrase in economic policy statements: \u201cinvestment in people\u201d, as opposed to only investing in capital, such as infrastructure and property.
At last month\u2019s 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.<\/p>\n