The Social Benefits of 'Investing in People' in China: A Comprehensive Overview

Recently, many consumers in China, including my friends and I, have made significant purchases of home appliances. This year's statistics reveal that over 100 million units have been replaced thanks to a consumer goods trade-in initiative, a noteworthy outcome spurred by generous subsidies aimed at fostering consumption. The pivotal question, posed by a reader on people.cn, is whether these policies, centered around the principle of "investing in the people", are indeed reshaping society for the better.

Across the nation, various local governments have rolled out numerous initiatives: vocational training programs, support for childbirth and childcare, and enhancements in healthcare services are just a few examples of how China is prioritizing public welfare. The central government emphasizes the importance of safeguarding and improving living standards, implementing ten key measures aimed at expanding social security coverage. These collective efforts embody a core principle: "investing in people".

This concept was highlighted in this year's Government Work Report presented at the National People's Congress and has since become a focal point in discussions surrounding China’s development strategy. Historically, China has made vast investments in infrastructure — building dams, highways, industrial hubs, and expanding high-speed rail networks — all aimed at enhancing the populace's quality of life. These actions reflect a deep-rooted philosophy that prioritizes human well-being.

As time progresses, the government has consistently directed a large portion of its fiscal budget—over 70%—toward initiatives designed to uplift public welfare. The more these policies are enacted, the clearer their long-term benefits become.

Improving Well-Being

The aspects of employment, education, healthcare, housing, elderly care, and childcare significantly impact millions of households in China. To alleviate these concerns and provide everyone with the means to enjoy life and pursue personal development through consumption, the strategy of "investing in people" proves to be an effective solution.

Starting from this year, China has committed to subsidizing vocational skills training for more than 10 million individuals annually over the next three years. The central government has already allocated over 80 billion yuan ($11.16 billion) for student aid in local guidelines. Many communities are intensifying efforts to renovate outdated housing and enhance urban settings, broaden access to high-quality health services, and introduce childcare subsidy programs. These extensive measures are intended to empower millions with improved occupational skills and increased purchasing power. The outcomes are substantial: participants gain a sense of achievement, happiness, and security, while simultaneously boosting demand for better living conditions.

Stimulating Domestic Consumption

Raising household incomes and lessening financial burdens is essential for unlocking substantial domestic consumption potential. The "investing in people" framework is directly linked to enhancing consumption patterns, thus catalyzing economic growth. Substantial subsidies have invigorated China's immense consumer market, with 300 billion yuan allocated to support the trade-in program. From 2024 to the first half of this year, this initiative has stimulated a remarkable 2.9 trillion yuan in retail sales, benefiting approximately 400 million individuals through various subsidy policies.

The principle that supply can generate demand has been evidenced through government endeavors, such as the new-energy vehicle (NEV) rural outreach campaign aimed at cultivating consumption in underserved rural regions. This campaign has effectively tapped into the burgeoning consumer market for NEVs, fostering greater demand nationwide. Furthermore, innovation serves as a key driver of new opportunities, with provincial governments investing in emerging sectors, including the ice and snow economy and silver economy, which collectively fuel growth in the consumer market and bolster regional development.

Nurturing Talent for Future Success

In this context, "people" extend beyond residents and consumers; they encompass human capital and talent development. Allocating resources to enhance workforce capabilities not only benefits individuals but also contributes profoundly to national progress, helping to accumulate the human resources necessary to foster innovation and maintain competitive advantages.

In Beijing, new housing units have been incorporated into a talent apartment complex to assist recent graduates in their pursuit of employment and internships. Similarly, the Shanghai Foundation Model Innovation Center is dedicated to cultivating a hub for young entrepreneurs, particularly in the field of artificial intelligence. In Shenzhen, ongoing government investment aims to elevate the technical skills of the workforce, reflecting a collective belief that talent is paramount for future success.

By improving public welfare, stimulating domestic consumption, and establishing new avenues for growth, the strategic initiative of "investing in people" harmonizes multiple sectors, enhancing living standards, fostering personal development, and fortifying China’s overall strength. Ultimately, such efforts yield broader benefits, ensuring that the fruits of modernization are equitably distributed. As the Chinese economy advances towards higher quality growth supported by tailored governmental policies, the principles of "investing in the people" will evolve and expand, guiding future human resource development while promoting equitable distribution of modernization’s benefits across society.