In-depth Reading of Government Work Report | Exclusive Interview with Zhang Jianping from China Academy of International Trade and Economic Cooperation: Investment Demand Pull is Very Obvious in Fields like Artificial Intelligence, Need to Drive and Stimulate Private Investment Vitality Through Central and State-Owned Enterprises

The Daily Economic News reporter | Zhang Huaisui The Daily Economic News editor | Chen Junjie

This year’s Government Work Report continues to prioritize expanding domestic demand as the top focus of economic work through 2026.

On March 5th, the Fourth Session of the 14th National People’s Congress opened at the Great Hall of the People. The 2026 Government Work Report (hereinafter referred to as the Report) states that we will adhere to demand-led growth, coordinate efforts to promote consumption and expand investment, explore new avenues for domestic demand growth, and better leverage our country’s super-large market advantage.

The Report emphasizes the in-depth implementation of targeted actions to boost consumption. It aims to stimulate residents’ intrinsic consumption motivation and promote policies to encourage consumption, ensuring sustained growth. A special fund of 100 billion yuan will be established, combining fiscal and financial efforts to promote domestic demand, utilizing methods such as loan interest subsidies, financing guarantees, and risk compensation to support expanding domestic demand.

Meanwhile, in terms of unlocking and releasing effective investment potential, the Report proposes increasing the proportion of government investment in people’s livelihood projects, issuing 800 billion yuan in new policy-based financial instruments, and attracting more social capital to participate in investment. It also guides private investment toward high-tech and modern service industries, effectively stimulating the vitality of private investment.

Where are the new spaces for expanding domestic demand in China by 2026? How can we stimulate residents’ intrinsic consumption motivation? What are the key measures to stabilize and recover investment? Focusing on these questions, the Daily Economic News interviewed Zhang Jianping, Deputy Director of the Academic Committee at the Ministry of Commerce’s Institute of International Trade and Economic Cooperation.

[Photo of interviewee]

Enabling residents’ disposable income to grow faster than GDP

NBD: Last year’s Government Work Report proposed “comprehensive expansion of domestic demand,” while this year’s report states “exploring new spaces for domestic demand growth.” How do you view the difference in wording? Where are these new spaces reflected?

Zhang Jianping: This year’s report mentions expanding new spaces for domestic demand growth, and I think this requirement is more specific and clearer in direction. For example, in consumption, new spaces are reflected in new consumption scenarios, new business formats, new consumption models, as well as in both product and service consumption.

In investment, areas like artificial intelligence, industrial robots, new materials, biomedicine, and quantum technology require proactive planning. Infrastructure connectivity and improving the supply of higher-quality public goods also clearly drive investment demand. Expanding these new spaces for demand growth helps us create better incremental demand, which in turn stabilizes and advances the existing demand base.

NBD: The government work report this year emphasizes stimulating residents’ intrinsic consumption motivation. What aspects do you think this intrinsic motivation is reflected in? How can it be effectively stimulated?

Zhang Jianping: First, it’s reflected in residents’ willingness to consume, which depends on social security. For example, whether social security coverage is broad enough, and whether the level of social security support is increasing, so residents can consume without worries.

Second, it’s about residents’ ability to spend. That is, their pockets need to have money, and disposable income levels should keep rising. This can be achieved by expanding employment and stabilizing income expectations. Additionally, establishing a long-term mechanism for wage growth and employing multiple measures can ensure residents’ disposable income grows faster than GDP.

Furthermore, to foster consumption willingness, consumer rights must be protected. Whether in goods or services, market order needs to be further regulated, and consumer rights safeguarded, to boost confidence and motivation to consume.

Private investment has more growth potential in foundational and public service sectors

NBD: We note that this year’s government work report introduces a new measure: establishing a 100 billion yuan special fund for fiscal and financial coordination to support expanding domestic demand. How effective are measures like interest subsidies and expanded credit loans in boosting demand?

Zhang Jianping: In recent years, policies like old-for-new have played an important role in stimulating consumption. This year, the country continues to allocate 250 billion yuan in ultra-long-term special bonds to support old-for-new consumer goods. An additional 100 billion yuan in funds for loan interest subsidies mainly helps further stimulate credit consumption among residents.

This is especially effective for bulk and durable goods, which tend to have higher prices, making credit-based consumption more impactful. Coupled with interest subsidy policies, these financial measures form a “combination punch” that I believe will significantly contribute to consumption growth this year.

NBD: Regarding stable investment, the report mentions issuing 800 billion yuan in new policy-based financial instruments to attract more social capital. What are the main reasons for the current sluggishness in private investment? How can we achieve a stabilization or rebound?

Zhang Jianping: The main reason for weak private investment is that the expected returns do not meet investors’ expectations. This is a complex issue; it cannot be solved solely through tax cuts and fee reductions. It also requires supportive inclusive financial policies, rectifying unhealthy competition, and establishing a fair, transparent market environment to enable healthy market selection.

Addressing private investment weakness requires long-term, systemic, and comprehensive planning and deployment.

NBD: We noticed that last year, fixed asset investment nationwide declined year-on-year. What is your outlook for investment trends this year?

Zhang Jianping: Compared to last year, I believe investment growth in 2026 will improve significantly. On one hand, resolving local government debt risks and leveraging large state-owned and central enterprises’ investment will help boost private sector investment in fixed assets. Particularly in foundational and public service sectors, private investment has considerable growth potential.

On the other hand, implementing the Foreign Investment Law and related regulations will help create a better business environment for both domestic and foreign investors. Through a combination of measures and leveraging different ownership sectors, I am confident that fixed asset investment will turn positive in 2026 and make a greater contribution to economic growth.