From Infrastructure to Human Capital: A Strategic Recalibration
In 2025, China’s governance narrative shifted decisively from traditional infrastructure-driven growth to systemic investments in social welfare, education, and healthcare. President Xi Jinping’s emphasis on "people’s livelihood" during domestic inspections informed landmark policies like the June 2025 "Opinions on Further Guaranteeing and Improving Livelihoods," which prioritized urgent public needs over abstract economic targets.
Fiscal Priorities Reflect Social Commitment
The 2025 national budget revealed a historic tilt toward social welfare: education spending rose 6.1%, while social security and employment allocations grew 5.9%. A dedicated 156.68 billion yuan fund provided critical support for disaster-affected and medically vulnerable households, signaling a state-led effort to de-risk citizens’ lives amid economic transitions.
Labor Markets and Demographic Challenges
China’s labor policies evolved to promote "high-quality entrepreneurship," exemplified by the 2025 Greater Bay Area Competition, which attracted 7,000 projects and 2.51 billion yuan in investments. Simultaneously, aging-in-place subsidies in Zhejiang and Guizhou provinces, alongside nationwide childcare cash allowances, addressed demographic pressures through direct fiscal interventions.
Blueprint for the 15th Five-Year Plan
The CPC Central Committee’s 15th Five-Year Plan Recommendations formalized this shift, integrating livelihood improvements with consumption stimulation. By reducing burdens in housing, education, and healthcare—the "three mountains"—China aims to foster a consumption-driven economy rooted in enhanced human capital. This strategy positions individual well-being as the cornerstone of national strength.
