Stories of High-Quality Development | Expanding domestic demand on all fronts a long-term strategic initiative

The Central Economic Work Conference held in December 2024 listed expanding domestic demand on all fronts as the first key task for the Chinese economy in 2025, emphasizing that efforts should be made to vigorously boost consumption, improve investment efficiency, and expand domestic demand on all fronts. This fully demonstrates the great importance that has been placed on expanding domestic demand and China's firm determination to achieve it.

How can we grasp the strategic significance of expanding domestic demand? How can we find effective ways to expand domestic demand on all fronts? Recently, Zhang Zhanbin, director of the Chinese Modernization Research Center and professor of the School of Marxism, the Party School of the Communist Party of China Central Committee (National Academy of Governance), clarified three common misunderstandings about expanding domestic demand, and explained the deep implications of expanding domestic demand in "Stories of High-Quality Development", a People's Daily's video series.

Misunderstanding one: "Does expanding domestic demand mean emptying people's wallets?"

In response to this misunderstanding, Zhang explained that expanding domestic demand and boosting consumption certainly require the participation of ordinary people. On one hand, we need to improve the quality and level of supply to meet people's aspirations for a better life. On the other hand, we must continuously improve income distribution systems and policies, enhance public services, and increase people's incomes so they can consume confidently and without undue worry. The ultimate goal is to make our lives better and the economy more stable and robust.

Taking Hubei Province as an example, by vigorously developing the ice and snow economy in winter, it has not only promoted the innovative development of local cultural and tourism enterprises, but also created new jobs such as snow trail maintenance, safety assurance, ski equipment rental, and food services, allowing more villagers to have a stable income at their doorstep.

"As locals say, one ski resort is transforming a mountain township," said Zheng Xiaohuan, deputy general manager of the Lyucongpo Ski Resort. More and more people are coming here to embrace "snow and ice in the south," and consumers are enjoying high-quality services at lower prices. Guesthouses and restaurants are opening, and equipment rental services are booming. The government's various supporting policies have brought about real benefit to local people from the "snow economy."

Misunderstanding two: "Are the large-scale equipment upgrades and consumer goods trade-in programs just short-term stimulus measures?"

Addressing this misunderstanding, Zhang said the large-scale equipment upgrades and consumer goods trade-in programs are aimed at expanding domestic demand, boosting consumption, and promoting industrial upgrading and high-quality development. The programs also reflect China's concern for green development and the well-being of the people. They are not simple short-term policies to stimulate consumption, but rather powerful measures to promote industrial transformation and upgrading.

As he stands in the workshop, gazing at the twin visualization hubs and the precision-operated smart production lines, Liu Hexin, a smart manufacturing engineer at Haier Group's global refrigeration supply chain, can't help but reflect, "The transformation from outdated equipment to smart factories over the years is not only a technological leap, it is also a revolution concerning efficiency and responsibility."

The entry of energy-efficient refrigerators into households is reducing carbon emissions. Intelligent systems are feeding back into production, improving quality standards. The country's policies serve as a bond, closely linking user needs with enterprise upgrades. This "full-chain upgrade" creates synergy between economic benefits and social responsibilities.

Misunderstanding three: "Does expanding domestic demand mean abandoning foreign markets?"

In response, Zhang told People's Daily that in the new era and on the new journey, as we focus on building a new development pattern, we need to comprehensively expand domestic demand, leverage our super-sized market, and construct a new paradigm led by domestic demand while maintaining synergy between domestic and international markets.

Six years ago, "Ne Zha" was released. This year, its sequel "Ne Zha 2" was released on the first day of the Chinese New Year. Liu Pan, general manager of Chengdu Kekedou Animation Film and Television Co., Ltd., said the guochao (China chic) trend has brought a bonus effect to the film market, making audiences more willing to pay for film and television works with Chinese cultural characteristics.

The release of the first "Ne Zha" film overseas created a positive international influence. Its sequel landed on the big screens in North America and other regions, and received widespread attention during the pre-sale stage. Liu believes that driven by the wave of globalization, Chinese films are moving towards the world stage with unprecedented speed and determination, showing the unique charm of Chinese culture to global audiences. As an important carrier of cultural communication, Chinese films wills bring new consumption experiences at home and abroad with their profound cultural heritage and huge market potential.

According to Zhang, comprehensively expanding domestic demand requires us to fully mobilize "four key enthusiasms." First, we must fully mobilize the enthusiasm of the general public. Second, we must fully mobilize the enthusiasm of various business entities, especially private enterprises. Third, we must fully mobilize the enthusiasm of capital markets. Fourth, we must fully mobilize the enthusiasm of officials.

Expanding domestic demand on all fronts is not a "temporary measure," but a long-term strategic initiative.

"We must maintain confidence and prioritize practical actions, both 'spurring the horse forward,' to quickly make domestic demand the main engine of economic growth, and 'climbing high to see far,' continuously deepening institutional reforms and improving governance systems to inject lasting and stable endogenous momentum into China's economic development," Zhang said.