CNBC:

What measures, as part of efforts to boost domestic demand, will be taken this year to increase consumer income? Thank you. 

Wang Changlin:

I would like to invite Mr. Zhou Chen to answer this question.

Zhou Chen:

This is a very good question, because people are quite concerned about boosting domestic demand. Improving consumer income is a very important aspect of this, and I think it can be viewed from multiple perspectives and in a comprehensive manner.

The CPC Central Committee and the State Council have attached great importance to expanding domestic demand. We have adhered to expanding domestic demand as a strategic focus and continuously enhanced the endogenous driving force and reliability of the domestic economic cycle. In recent years, we have achieved remarkable results. For example, domestic demand has become a stable anchor for driving economic growth. In 2025, the per capita disposable income of residents increased by 5% in real terms, keeping pace with economic growth, and has become an important supporting factor for the growth of domestic demand. Domestic demand contributed more than 67%, that is, two-thirds, to economic growth throughout the year, with consumption accounting for 52% of that. New demand leads to new supply, and new supply creates new demand, forming a virtuous cycle. Domestic demand has become the primary driver for transformation and upgrading. We are seeing consumption moving toward new trends, with the market size of new energy vehicles and online sales remaining the largest in the world. Investment is focusing on high-quality development, with investment in high-tech services growing by 3.5% last year. In particular, investment in green energy sustained rapid growth. Domestic demand has also led to the creation of a large market with global influence. China has a population of over 1.4 billion, including a large middle-income group. Its consumption of physical goods such as clothing, food, housing, and transportation ranks first globally. In 2025, China's goods imports reached 18.5 trillion yuan, making it the world's most promising and fastest-growing super-large market. Of course, while acknowledging these achievements, we are also keenly aware that, as a reporter just mentioned, the contradiction of supply exceeding demand remains quite prominent in the domestic market. In accordance with the arrangements of the Central Economic Work Conference, our next step is to focus on "three close integrations."

First, we will closely integrate improving people's livelihoods with promoting consumption. Consumption is fundamentally determined by employment and income. Relevant authorities are currently formulating action plans to stabilize jobs, expand employment and improve job quality, as well as programs to increase the incomes of urban and rural residents. The goal is to enhance consumers' purchasing power while improving the supply of consumer goods. This year, we will continue to implement the consumer goods trade-in program. The first batch of funds, totaling more than 60 billion yuan, has already been allocated. We will further implement targeted initiatives to boost consumption and create new consumption experiences with broad appeal and high visibility. I would like to highlight in particular that the service sector has become a key focus of efforts to expand domestic demand. This year, we will promote the implementation of an action plan to expand capacity and improve quality in the services industry, introduce a package of substantive policies, and step up support for the sector's high-quality, efficient development.

Second, we will closely integrate "investing in things" and "investing in people." Investment drives both current demand and future supply. A portion of this investment directly converts into workers' incomes. We will focus on improving investment efficiency and fostering mutually reinforcing synergies between physical and human capital. Just now, Mr. Wang Changlin introduced the progress of the initiatives for implementing major national strategies and strengthening security capacity in key areas, many of which invest directly in people. We will adhere to a top-down approach that combines physical investment and institutional support, make good use of various government investment funds, optimize the structure of government investment, increase the share of government investment in livelihood-related projects, and thereby stimulate demand. At the same time, we will continue to issue and use new policy-based financial instruments to attract more private investment and social capital.

Third, we will closely integrate policy support with reform and innovation. Expanding domestic demand is not a stopgap measure but a strategic choice. It requires both strong policy support and deepened reform efforts. The State Council recently deployed a coordinated package of fiscal and financial policies to boost domestic demand. These policies mainly work through interest subsidies on loans and guarantee compensation to generate a "1+1>2" policy effect. This represents an important innovation in macroeconomic regulation and counter- and cross-cyclical adjustments, and also functions as a form of transfer payment. We will also actively use reform and innovation to address bottlenecks and blockages in the virtuous cycle between supply and demand. This includes removing unreasonable restrictions on consumption, advancing pilot programs for new consumption forms, models and scenarios, improving investment and financing mechanisms, and refining long-term mechanisms for private enterprises to participate in major national projects. We will work to arrest the decline in investment and restore stability, accelerate the building of a unified national market, and further smooth domestic economic flows.

That's all for my answer. Thank you.

Shou Xiaoli:

The last question, please.