Regarding Boosting Consumption And Stabilizing Investment, The Latest Major Decisions From The State Council Executive Meeting

Affected by factors such as the rise in the base period of the same time last year and increased external uncertainties, many macroeconomic indicators have fluctuated in growth since the third quarter, raising the necessity for timely strengthening of macro policies.

According to Xinhua News Agency, Premier Li Qiang presided over a State Council executive meeting on November 14 to study the in-depth implementation of the "two major" construction tasks, and to deploy policy measures to enhance the adaptability of supply and demand for consumer goods and further promote consumption.

The executive meeting of the State Council emphasized the need to reasonably schedule the pace of project construction and fund allocation, strengthen the matching of projects and funds, guide more private capital participation, and amplify the effect of the "two major" construction projects. Consumption upgrades should lead industrial upgrades, with high-quality supply better meeting diversified demands, achieving a higher level of dynamic balance between supply and demand.

Amplifying the Effect of the "Two Major" Construction Projects

The meeting pointed out that the "two major" construction projects should be planned and promoted within the overall context of the 15th Five-Year Plan, firmly grasping strategic, forward-looking, and holistic requirements, strengthening departmental coordination, integrating soft and hard aspects, and promoting the in-depth implementation of national major strategies and steady improvement of security capabilities in key areas.

The "two major" projects refer to the implementation of national major strategies and the building of security capabilities in key areas. In 2025, a total of 800 billion yuan has been allocated for 1,459 projects involving key areas such as ecological restoration of the Yangtze River Basin, major transportation infrastructure along the Yangtze River, the new western land-sea corridor, high-standard farmland, major water conservancy projects, and urban underground pipelines. The list of projects for this year's 800 billion yuan in "two major" construction has been fully issued.

The meeting clarified that project review should be optimized, with greater attention to the input of innovative elements and investment in intangible assets, promoting the development of new quality productive forces. A sound project coordination mechanism should be established, with strict management of engineering quality and safety, alongside proper handling of asset management and subsequent operations. The pace of project construction and fund allocation should be reasonably arranged, project and fund matching should be strengthened, long-term loans and policy-based financial funds should be actively leveraged, and more private capital should be guided to participate to amplify the effect of the "two major" construction projects.

In the recently published "Guidebook on the Recommendations of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development," National Development and Reform Commission (NDRC) Director Zheng Shanjie published a signed article titled "Adhering to the Strategic Base Point of Expanding Domestic Demand."

Each Five-Year Plan implements a series of major landmark projects. In the article, Zheng Shanjie introduced that during the 15th Five-Year Plan period, in accordance with national development needs, a series of major landmark projects will be implemented in areas such as urban renewal, strategic backbone corridors, new energy systems, major water conservancy projects, and major national science and technology infrastructure, promoting continuous growth in infrastructure investment at a moderately advanced level, without being excessively ahead.

Regarding the issue of certain sectors being "investment-heavy, benefit-light," Zheng Shanjie stated that investment funds should leverage greater economic and social value. Price formation mechanisms in sectors like transportation and energy should be improved, and investment project services and element guarantees should be continuously strengthened to increase investment returns. The layout of supporting infrastructure and public service facilities in education should be optimized to meet changes in land space, population structure and mobility, industrial upgrading trends, and service function optimization.

Zhang Linshan, a researcher at the Macroeconomic Research Institute of the NDRC, stated that "two major" projects focus on urgent national strategic and security needs. Their investments not only generate immediate stimulation effects but also contain enormous long-term development potential, effectively promoting industrial structure optimization and upgrading, bridging key area gaps, and improving total factor productivity. They serve as critical support and a strong "stabilizer" to consolidate the positive momentum of economic recovery and strive to achieve the annual socio-economic development goals.

Enhancing the Adaptability of Supply and Demand for Consumer Goods

Enhancing supply and demand adaptability is an effective measure to further unleash consumption potential and smooth economic circulation.

The meeting pointed out that industrial upgrading should be led by consumption upgrading, and high-quality supply should better meet diverse demands, achieving a higher-level dynamic balance between supply and demand.

Chen Lifen, Director of the Market Circulation Research Office at the Market Economy Research Institute of the Development Research Center of the State Council, stated that Chinese residents' consumption is shifting from focusing on quantity to improving quality, with trends of diversification, personalization, and high-quality consumption becoming prominent. Consumers are willing to pay a premium for good products, good scenarios, and good experiences that satisfy emotional value. This requires promoting mutual advancement of industrial and consumption upgrades, leading new supply with new demand and creating new demand with new supply, thereby fostering a healthy interaction between consumption and investment, supply and demand.

Wu Chaoming, Chief Economist at Caixin Financial Holdings, believes that the meeting's emphasis on "enhancing the adaptability between supply and demand" is key to unlocking consumption potential and facilitating economic circulation. It signifies a shift in policy thinking from the previous focus on one-way "stimulating consumption" or "expanding production" to pursuing a higher-level dynamic balance and healthy interaction between supply and demand.

The meeting clearly stated the need to accelerate the innovative application of new technologies and models, strengthen the integration and empowerment of artificial intelligence, focus on developing new products and value-added services in key industries and sectors, and continuously expand new consumption growth. It is necessary to actively support enterprises in expanding the supply of distinctive, high-quality consumer goods, accelerate the updating and upgrading of safety, performance, and green standards, and improve the certification system. Efforts should focus on precisely matching the needs of different groups in segmented markets, developing a batch of flexible manufacturing plants, and promoting efficient production that responds to consumers' personalized needs. New consumption scenarios and business formats should be cultivated, consumption finance products and services enriched, and a favorable consumption environment promoted.

Wu Chaoming stated that achieving a higher-level dynamic balance and healthy interaction between supply and demand requires two approaches: on one hand, leading industrial upgrading through consumption upgrading, making market demand the guide for industrial innovation; on the other hand, stimulating and meeting diversified new demands by creating high-quality supply, thus forming a strong driving force of "demand pulling supply, supply creating demand."

In July, when deploying key tasks for the second half of the year, the Ministry of Industry and Information Technology mentioned developing an action plan to enhance the adaptability of supply and demand for consumer goods to help expand consumption, and accelerate the development and application of technologies such as AI terminals, ultra-high-definition video, and smart wearables.

Xie Shaofeng, Chief Engineer at the MIIT, stated that the empowering role of artificial intelligence continues to strengthen. China has cultivated and open-sourced large AI models, accelerating applications in electronics, raw materials, consumer goods, and forming a batch of new models and business formats. AI smartphones, AI computers, AI glasses, and other AI terminals have exceeded a hundred models, becoming new growth points driving economic development.