Chinese experts have unveiled ambitious proposals to reshape economic growth through a historic $14 trillion consumer investment plan and transform Hainan into a pivotal global trade hub. The dual strategies, discussed at back-to-back forums in Haikou, signal efforts to address domestic demand challenges and counter international protectionism.
Unlocking Consumer Potential
At Monday's consumption development conference, economist Chi Fulin proposed a decade-long 'human capital' initiative valued at $14 trillion to boost spending in education, healthcare, and urbanization. 'We must convert our population size into sustainable growth power,' said Chi, emphasizing rural service-sector development as critical for economic upgrading.
Former Ministry of Commerce researcher Zhao Jinping cautioned that 45%+ household savings rates reflect persistent financial anxieties. He advocated digital industry expansion in rural areas, land reform, and enhanced social safety nets to build spending confidence. 'Economic security precedes consumption,' Zhao noted.
Hainan's High-Stakes Transformation
At a symposium on the Hainan Free Trade Port, experts detailed plans to position the island as a 'pressure valve' against U.S. trade tensions. Key proposals included implementing a tariff-separated customs system by 2025, expanding visa-free tourism, and aligning regulations with CPTPP standards to attract global businesses and high-net-worth visitors.
The China Institute for Reform and Development also announced a October launch of the World Free Trade Forum through collaboration with the World Free Zones Organization. Chi suggested Hainan could host the 2026 APEC Leaders' Meeting to cement its role in global trade dialogues.
Balancing Ambition and Reality
While these initiatives highlight China's consumer-centered pivot, analysts note challenges like reforming entrenched savings habits and ensuring Hainan's infrastructure meets global hub standards. As trade tensions reshape supply chains, the success of these interconnected strategies could influence Asia's economic trajectory for decades.
