China pivots to ‘investing in people’ strategy as growth engine switches gears

China will allocate more of its fiscal spending this year towards human capital and social safety nets, as Beijing seeks to boost domestic demand and unlock new growth through “investing in people”.“Efforts must be sustained to optimise the expenditure structure, with greater emphasis on supporting the boosting of consumption, investing in people, and safeguarding people’s livelihoods,” Premier Li Qiang said in his annual work report, delivered during the opening session of the National People’s Congress on Thursday.Incorporated into China’s 15th five-year plan, the “investing in people” concept reflects Beijing’s shift in approach as it places greater reliance on the domestic market for future expansion amid global uncertainties, after decades of export-led growth and heavy investment in physical assets. This marks the first time the slogan has appeared in such a strategic policy blueprint.Unlike Western strategies that prioritise tax cuts for the wealthy to drive growth, China is emphasising the need to improve public well-being, with specific targets now enshrined in policy road maps.In his report, the premier vowed to increase inputs in areas closely related to human development. These include formulating and implementing plans to boost residents’ incomes; rolling out more supportive and friendly policies for childbearing; expanding support for senior care; and launching large-scale vocational skills training programmes.Beijing has set seven livelihood-related goals among its 20 numerical targets for the five years, according to the full text of the 15th five-year plan released the same day. The plan guides China’s policy priorities from 2026 to 2030.04:30China’s fourth plenum: party leaders call for boosting self-reliance against ‘raging storms’China’s fourth plenum: party leaders call for boosting self-reliance against ‘raging storms’