Xinhua Review · Focus on the Central Economic Work Conference | We must adhere to the close combination of investing in goods and investing in people - learning and understanding the "Five Musts" to do a good job in next year's economic work

At the recently held Central Economic Work Conference, General Secretary Xi Jinping summarized the new understanding and experience of doing a good job in economic work under the new situation with the "Five Musts". It is important to adhere to the close combination of investing in goods and investing in people.

This important experience summary clarifies the need to expand effective investment in the real economy and technological innovation, as well as strengthen human resource development, which embodies the profound principle of the unity of economic and social development and comprehensive human development. It further enhances and optimizes investment concepts, directions, and priorities, providing scientific guidance for China to focus on expanding domestic demand, stimulating endogenous power, and enhancing people's well-being in the stage of high-quality development.

Coordinate 'investment' and 'investment', fully leverage the key role of investment

Along the Huangpu River, there are intertwined alleys. This year, with the completion of the upgrading and renovation of old houses without sanitation facilities, Shanghai bid farewell to the historical memory of "carrying toilets", and more residents enjoy a higher quality of urban life.

Urban renewal is a comprehensive and systematic strategic action to promote high-quality urban development. During the 14th Five Year Plan period, more than 240000 old urban communities were renovated nationwide. Behind this measure is the value orientation of "putting the people first", which reflects the deep consideration of "adhering to the close integration of investment in goods and investment in people".

This year's Central Economic Work Conference proposed that "we must adhere to the close integration of investment in goods and investment in people", which is consistent with the "15th Five Year Plan" proposal of "adhering to the close integration of benefiting people's livelihoods and promoting consumption, and investing in goods and investment in people". This puts forward new and higher requirements for resource allocation, which is related to the overall development and long-term future.

Human beings are the most active, dynamic, and decisive factor among the various elements of productivity, and they are the starting point and foothold of development. At present, it has gradually become a consensus to make the investment flowing towards "things" better serve people, improve investment efficiency, and promote the comprehensive development of people. Various regions and departments are constantly innovating and exploring in their development practices——

The opening of the world's first Guizhou Huajiang Canyon Bridge, both horizontally and vertically, has turned the natural barrier into a thoroughfare and become a new pivot for local bridge tourism integration and regional development; Constructing and renovating underground pipelines, safeguarding the "neighborhood" and "conscience" of the city... Each project takes into account both the present and the long term, promoting economic growth while ensuring the improvement of people's livelihoods.

Implementing a childcare subsidy system, gradually promoting free preschool education, supporting youth entrepreneurship, vigorously developing the silver economy, continuously strengthening the "trade in" of consumer goods, promoting green and low-carbon development... Investing "real money" in education, healthcare, employment, environment and other fields can not only help improve people's livelihoods and expand domestic demand, but also play a leverage role in mobilizing investment.

Investing in goods to build a strong economic foundation for a major country; Investing in people and stimulating new vitality in the economic cycle. The close integration of the two will better promote a virtuous cycle of economic development and improvement of people's livelihoods, playing a key role in stabilizing growth, preventing risks, and benefiting people's livelihoods.

Practice has proven that promoting mutual promotion and progress between investment in goods and investment in people, and leveraging the key role of investment in expanding domestic demand, optimizing supply, and benefiting people's livelihoods, can continuously create new supply and stimulate new demand. This is the key to enhancing the endogenous power and reliability of the domestic circulation.

Seeing things is more important than seeing people. China has enormous investment potential and space

Since 2025, the downward pressure on investment has increased, causing concern.

We need an objective and comprehensive understanding of the changes in investment growth rate, not just looking at the current situation, but also from a development perspective. China is still the world's largest developing country, and in the future, we need to reach the level of a moderately developed country. China's investment potential and space are still enormous, "said Fu Linghui, spokesperson for the National Bureau of Statistics.

It should be noted that the driving force of China's economic growth has undergone a profound transformation, with the marginal benefits of investment solely focused on goods decreasing and the multiplier effect of combining investment in goods and investment in people increasing.

Following economic laws and better coordinating the accumulation of goods and human development, enormous development potential will continue to emerge.

Potential is emerging in accelerating the cultivation of new quality productivity——

Strengthening the foundation of the real economy, promoting the integrated development of technological innovation and industrial innovation, accelerating the cultivation and growth of new quality productive forces, and promoting the transformation and upgrading of traditional industries all require continuous increase in investment.

Education is the foundation, technology is the key, and talent is the foundation. The coordinated and integrated development of the three reflects the close combination of investment in materials and investment in people, which is an urgent need for high-quality development and an inevitable requirement for responding to international competition. "During the group discussion of this year's Central Economic Work Conference, the attending comrades reached a consensus.

Potential is nurtured in promoting comprehensive green transformation——

Green development is the bright background of Chinese path to modernization. A good ecological environment is the most universal welfare for people's livelihoods. Taking carbon peak and carbon neutrality as the driving force, we will work together to promote carbon reduction, pollution reduction, green expansion, and growth, and continue to expand the space for domestic demand growth. It is understood that promoting the comprehensive transformation from dual control of energy consumption to dual control of carbon emissions requires an annual investment of at least 2 trillion yuan or more before 2030.

Potential is stimulated in drawing a new picture of common prosperity——

Material capital investment in infrastructure, public service facilities, and livelihood projects is an important means to achieve social equity and promote common prosperity; Human capital investment, especially inclusive education and social security investment, is an effective way to narrow the wealth gap.

By investing in human capital to cultivate more high-quality workers, the productivity and innovation capabilities of the entire society will be greatly improved, thereby making the "cake" of common prosperity bigger and better distributed.

Facing the basic realization of socialist modernization, there is still a lot of investment space for urbanization, technological innovation, industrial upgrading, and improvement of people's livelihoods in China, "said Han Wenxiu, Deputy Director in charge of daily work of the Central Finance Office and Director of the Central Agriculture Office.

Investment in goods and investment in people mutually promote each other, better driving high-quality development

Strive to achieve nationwide basic implementation of 'no self payment' for childbirth within the policy scope next year. The National Medical Security Work Conference held on December 13th released a policy signal of birth and child friendliness, and also demonstrated sustained efforts in investing in key areas of human resources.

Expand effective investment and enhance development momentum. The Central Economic Work Conference has clarified that the first of the eight key tasks for next year's economic work is to "adhere to the leading role of domestic demand and build a strong domestic market", and has made a series of specific arrangements for investment work——

Promote investment to stop falling and stabilize, appropriately increase the scale of investment within the central budget, optimize the implementation of "dual" projects, optimize the management of the use of local government special bonds, continue to play the role of new policy financial instruments, and effectively stimulate the vitality of private investment

China still has many shortcomings and weaknesses in scientific and technological innovation, industrial upgrading, infrastructure, and improving people's livelihoods, "said a responsible comrade from the Central Finance Office." We need to combine investment in goods with investment in people, coordinate efforts to boost consumption and expand investment, accelerate the construction of consumer infrastructure such as parking lots, charging piles, and tourist roads, increase the proportion of investment in livelihood related areas such as elderly care, childcare, and medical care, promote high-quality urban renewal, and focus on expanding effective investment.

Government investment has the leverage effect of "pulling a thousand pounds with four or two", which can effectively drive investment from the whole society.

The Ministry of Finance has recently made arrangements to increase the scale of investment within the central budget, optimize the implementation of 'dual' projects, optimize the management of the use of local government special bonds, and focus on better leveraging the driving effect of government investment next year.

The Governor of the People's Bank of China, Pan Gongsheng, stated that the bank will continue to implement a moderately loose monetary policy, grasp the intensity, pace, and timing of policy implementation, and create a favorable monetary and financial environment for stable economic growth and stable operation of financial markets.

Private investment is an important indicator of economic activity and plays a crucial role in stabilizing growth, employment, and expectations.

Expanding access, breaking through bottlenecks, and strengthening guarantees... Various regions and departments are using a combination of punches to tackle the challenges of private investment development.

The latest deployment of the National Development and Reform Commission shows that major engineering projects will be planned and implemented for the "15th Five Year Plan" next year. Further clarify investment rules, solidly carry out preliminary work, and strengthen investment project scheduling. Deeply implement several measures to promote the development of private investment and effectively stimulate the vitality of private investment.

Long lasting effort, good deeds and achievements.

Moving towards the 15th Five Year Plan, we will adhere to the close combination of investing in goods and investing in people, effectively promoting human development through the investment of goods, and continuously driving the iteration of human progress, forming a mutually reinforcing virtuous cycle. The momentum of high-quality development will be stronger and more sustainable, and the Chinese economy will surely ride the wind and waves, move steadily and achieve long-term success.