Han Wenxiu: Expanding consumption in the coming period is both the top priority and the most challenging task

“After years of effort, our country’s independent innovation capability has surpassed a certain turning point, making it difficult for external forces to reverse our development,” said Han Wenshou, Deputy Director of the Office of the Central Financial and Economic Affairs Commission and Director of the Office of the Central Rural Work Leading Group, at the China Development High-Level Forum 2026 Annual Meeting on March 22.

Han Wenshou stated that China’s “14th Five-Year Plan” is a comprehensive plan to implement new development concepts and promote high-quality development. It is a plan to create and share new opportunities with countries around the world. He further analyzed it from six aspects.

First, this is a plan to uphold innovation-driven development and stimulate economic vitality. Han Wenshou said that after years of effort, our country’s independent innovation capability has surpassed a certain turning point, making it difficult for external forces to reverse our development. Moving forward, we must double our efforts, accelerate catching up in areas where we still have gaps, and achieve parallel and leading development in areas where we have advantages, striving for higher levels of technological independence and self-reliance.

Han Wenshou indicated that we will maintain a reasonable proportion of manufacturing, build a modern industrial system with advanced manufacturing as the backbone, continue to deepen supply-side structural reforms, comprehensively address “involution” competition, and promote industrial upgrading in a step-by-step, ladder-like manner. This includes optimizing and upgrading traditional industries, cultivating and expanding emerging industries, and forward-looking planning for future industries to create more pillar and leading industries; fully promote the digital and intelligent development of the economy and society, create new forms of smart economy, implement the “Artificial Intelligence+” initiative, empower various industries with AI, and serve millions of households; increase the proportion of basic research, integrate education, science and technology, and talent development, generate more original results, accelerate the efficient transformation and application of major scientific achievements, and continuously foster new productive forces.

Second, this is a plan to promote coordinated development and tap into economic potential. “In the coming period, one of the most important and difficult tasks is to steadily increase the contribution of consumption to economic growth and promote the formation of a development model driven mainly by domestic demand, consumption, and endogenous growth,” Han Wenshou said. Currently, our country’s super-large market advantage has not been fully leveraged, and expanding consumption, especially service consumption, has enormous potential. There is significant room for investment in urban renewal, traditional infrastructure upgrades, and new infrastructure construction.

Han Wenshou stated that we will formulate and implement income-increasing plans for urban and rural residents, promote a significant increase in residents’ consumption rate, and closely combine investment in goods and people. We will strengthen human resource development and investment in comprehensive human development to fully unleash economic growth potential.

Third, this is a plan to pursue green development and build an ecological civilization. “Currently, nearly 40% of electricity used in Chinese society comes from green energy, meaning four out of ten units of electricity are green,” Han Wenshou said. The current international situation offers an insight: fossil energy sources like oil and gas often require imports and international transportation, whereas wind and solar energy are local resources that do not require imports or transportation.

Han Wenshou indicated that we will accelerate the construction of a new energy system, continuously increase the supply of renewable energy, strengthen the safe and reliable, orderly replacement of fossil fuels, and push for peak coal and oil consumption. We will also vigorously develop green and low-carbon technologies and industries, deepen energy-saving and carbon-reduction transformations in key sectors, and build a number of zero-carbon factories and zero-carbon parks.

Fourth, this is a plan to promote open development and demonstrate win-win cooperation. Han Wenshou emphasized that China does not pursue trade surpluses deliberately but actively promotes balanced trade development. “In fact, China has had a large trade deficit in services for many years. As a responsible major country, China proactively opens markets, increases imports of high-quality products, and grants zero-tariff treatment to 100% of tariff lines for all least developed countries that establish diplomatic relations with China.”

Fifth, this is a plan to promote shared development and common prosperity. Han Wenshou said that in the era of artificial intelligence, facing pervasive shocks and infiltration, we must adapt to the trend, respond comprehensively, uphold the principle of technology for good, promote high-quality full employment, optimize income distribution, improve the social security system, and promote social fairness and justice. This will continuously enhance people’s sense of gain, happiness, and security.

Sixth, this is a plan to coordinate development and security, ensuring steady progress of Chinese-style modernization. Han Wenshou stated that we will further strengthen the domestic cycle, smooth the dual circulation of domestic and international markets, and effectively enhance economic and social resilience. We will take effective measures to safeguard national food security, energy and resource security, the security of key industrial and supply chains, and major infrastructure safety. We will strengthen strategic mineral resource exploration, development, and reserves, and safeguard strategic passage security. We will coordinate risk prevention and development promotion, stabilize the real estate market, implement city-specific policies, control new additions, reduce inventories, optimize supply, accelerate the development of new real estate models, and actively and orderly resolve local government debt risks, maintaining the bottom line of avoiding systemic risks.

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