Year in Review: A Welfare Turn in Beijing’s Growth Playbook

China has adopted “Invest in People” as its defining mantra for 2025, marking a significant pivot from state spending on physical infrastructure to bolstering human capital.

The shift comes as the government attempts to reverse a deepening demographic contraction while managing a labor market strained by youth unemployment and regulatory debates. In his government work report delivered during the “Two Sessions” earlier this year, the premier explicitly called for funds to serve people’s livelihoods, aiming to create a virtuous cycle between economic development and social improvement.