China Shifts Focus to Social Welfare in New Five-Year Plan
Beijing – China is recalibrating its economic strategy, placing a greater emphasis on improving the well-being of its citizens and bolstering domestic demand, according to details released this week during the annual National People’s Congress. The shift, outlined in Premier Li Qiang’s government work report and incorporated into the country’s 15th five-year plan (2026-2030), signals a move away from decades of export-led growth and heavy investment in infrastructure.
Instead, Beijing intends to “invest in people,” prioritizing areas like income growth, childcare support, elder care, and vocational training. This marks the first time the slogan has appeared in a strategic policy blueprint of this kind.
“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,” Li stated during the opening session of the NPC on Thursday.
The change in approach comes as China faces global economic uncertainties and seeks to foster more sustainable growth. While the nation has set an economic growth target of 4.5% to 5% for 2026, the focus is increasingly on the quality of that growth and its benefits for the population.
Unlike Western economic models that often rely on tax cuts for the wealthy, China’s strategy centers on improving public well-being. Seven of the 20 numerical targets within the five-year plan are directly related to improving livelihoods. Specific plans include initiatives to increase residents’ incomes, expand support for families with children, and provide more comprehensive care for the elderly.
This pivot reflects a broader recognition within the Chinese leadership of the need to address social inequalities and build a more resilient economy. The move also comes amid calls for greater self-reliance, as highlighted in a recent party plenum, with leaders urging the nation to prepare for “raging storms” and strengthen its domestic capabilities.
[Embedded YouTube Video: China’s fourth plenum: party leaders call for boosting self-reliance against ‘raging storms’ – https://www.youtube.com/watch?v=Fr-pftm9R7k]
The emphasis on social welfare is a significant departure from China’s previous economic priorities, and its success will be closely watched by economists and policymakers worldwide. The shift could have implications for global trade and investment patterns, as China increasingly prioritizes its internal market.