--- title: "Jinding Think Tank | Lu Yi: The \"15th Five-Year Plan\" focuses on expanding domestic demand and stimulating consumption, ensuring that economic development truly benefits the people" type: "News" locale: "en" url: "https://longbridge.com/en/news/279004470.md" description: "During the National Two Sessions in 2026, Professor Lu Yi from Tsinghua University was interviewed, emphasizing that expanding domestic demand and activating consumption are key to driving sustained economic growth. He pointed out that efforts should be made in three areas: increasing workers' income, improving consumption willingness, and optimizing the consumption environment to strengthen the foundation of consumption. At the same time, Lu Yi mentioned the need to seize opportunities from the technological revolution, promote the integration of technology and industrial innovation, and encourage service consumption and the development of the private economy to achieve high-quality economic growth" datetime: "2026-03-13T07:54:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279004470.md) - [en](https://longbridge.com/en/news/279004470.md) - [zh-HK](https://longbridge.com/zh-HK/news/279004470.md) --- # Jinding Think Tank | Lu Yi: The "15th Five-Year Plan" focuses on expanding domestic demand and stimulating consumption, ensuring that economic development truly benefits the people China National Radio reported from Beijing on March 12 (Reporter Fan Rui) that during the 2026 National Two Sessions, topics such as "increasing labor income" and "AI taking jobs" attracted significant attention. Lu Yi, a chair professor and doctoral supervisor at Tsinghua University's Wudaokou School of Finance, was interviewed by China National Radio regarding macroeconomic development directions, efficiency and equity, technology and employment, and other issues of widespread societal concern. **Source Governance: "Strong Supply, Weak Demand" Structural Contradictions Fully Release Consumption Vitality** Lu Yi pointed out that the key factor for achieving sustained economic growth in 2026 still lies in reform. Given the current macroeconomic landscape, which generally presents a "strong supply, weak demand" structural contradiction, expanding domestic demand and activating consumption have become the primary tasks, requiring coordinated advancement from three dimensions: solidifying the foundation of household consumption, improving consumption willingness, and optimizing the consumption environment. To solidify the consumption foundation, Lu Yi suggested effectively increasing the proportion of labor remuneration in primary distribution, steadily promoting the formation of an olive-shaped distribution pattern, and expanding the scale of the middle-income group; to improve consumption willingness, it is necessary to advance welfare projects in education, healthcare, and elderly care, promoting the equalization of basic public services; optimizing the consumption environment requires aligning with the trend of upgrading consumption structure towards service consumption, facilitating rapid growth in the consumption of goods and services across society. Lu Yi emphasized the need to seize the historical opportunity of a new round of technological revolution and industrial transformation, increase investment in new productive forces, promote deep integration of technological innovation and industrial innovation, actively cultivate new consumption scenarios through cross-border integration, and utilize digital technology to expand new spaces for service consumption. Specifically, on one hand, it is essential to promote the formation of more economic development models led by domestic demand, driven by consumption, and characterized by endogenous growth, coordinating the collaborative upgrading of manufacturing and service industries, maintaining a reasonable proportion of manufacturing, shifting the industrial scale towards high-quality development, and enhancing innovation capabilities; on the other hand, it is crucial to actively encourage the productive service industry to extend towards specialization and high-end value chains, promoting high-quality, diversified, and convenient development of the life service industry, achieving a joint support for domestic demand expansion and high-quality development from both manufacturing and service industries. Lu Yi stressed that the upgrading of the economic structure cannot be separated from effective policy guidance. Efforts can be made from three aspects: first, promoting a balance between commodity consumption and service consumption, focusing on releasing the potential of service consumption; second, stimulating the investment vitality of the private economy with greater intensity, promoting collaboration along the industrial chain, and resolving structural overcapacity; third, improving export credit and export insurance mechanisms, consolidating the European and American markets while actively laying out in emerging markets in Asia, Africa, and Latin America, and diversifying the expansion of international circulation space. Lu Yi pointed out that the fundamental way to expand consumption is to increase residents' income levels. In this regard, the "14th Five-Year Plan" and the government work report have made clear institutional arrangements. Increasing holidays, from a time dimension, helps convert potential consumption demand into actual consumption, releasing the potential of service consumption. **Labor Skills and Artificial Intelligence Complement Each Other to Promote Comprehensive Human Development** Technological progress impacts employment structure, which is an objective law followed by major technological revolutions. Lu Yi believes that although this trend cannot be avoided, how to actively respond and proactively adjust is the key to breaking the deadlock On one hand, efforts are made to promote the complementarity between labor skills and artificial intelligence. By conducting vocational skills training, we aim to promote the deep integration of innovation chains, industrial chains, financial chains, and talent chains, enabling workers to better master and utilize artificial intelligence and robotics, achieving human-machine collaboration. On the other hand, we need to improve the redistribution mechanism and enhance the social security system. We should refine the institutional system that coordinates and supports the initial distribution, redistribution, and third distribution, focusing on the fundamental role of taxation and social insurance in adjusting the distribution pattern, improving the social security system, enhancing institutional sustainability, and increasing support for key groups. "The fundamental purpose of economic development is to enhance people's well-being," said Lu Yi, emphasizing that increasing workers' income and improving residents' quality of life are inherent requirements for practicing a people-centered development philosophy. ### Related Stocks - [000905.CN](https://longbridge.com/en/quote/000905.CN.md) - [510210.CN](https://longbridge.com/en/quote/510210.CN.md) - [159982.CN](https://longbridge.com/en/quote/159982.CN.md) - [159337.CN](https://longbridge.com/en/quote/159337.CN.md) - [159205.CN](https://longbridge.com/en/quote/159205.CN.md) - [159821.CN](https://longbridge.com/en/quote/159821.CN.md) - [399006.CN](https://longbridge.com/en/quote/399006.CN.md) - [000001.CN](https://longbridge.com/en/quote/000001.CN.md) - [000016.CN](https://longbridge.com/en/quote/000016.CN.md) - [159956.CN](https://longbridge.com/en/quote/159956.CN.md) - [159943.CN](https://longbridge.com/en/quote/159943.CN.md) - [000300.CN](https://longbridge.com/en/quote/000300.CN.md) - [159971.CN](https://longbridge.com/en/quote/159971.CN.md) - [159977.CN](https://longbridge.com/en/quote/159977.CN.md) - [159952.CN](https://longbridge.com/en/quote/159952.CN.md) - [000802.CN](https://longbridge.com/en/quote/000802.CN.md) - [159915.CN](https://longbridge.com/en/quote/159915.CN.md) - [510050.CN](https://longbridge.com/en/quote/510050.CN.md) - [159620.CN](https://longbridge.com/en/quote/159620.CN.md) - [510680.CN](https://longbridge.com/en/quote/510680.CN.md) - [399001.CN](https://longbridge.com/en/quote/399001.CN.md) - [510500.CN](https://longbridge.com/en/quote/510500.CN.md) - [510330.CN](https://longbridge.com/en/quote/510330.CN.md) - [159903.CN](https://longbridge.com/en/quote/159903.CN.md) - [510300.CN](https://longbridge.com/en/quote/510300.CN.md) - [002833.CN](https://longbridge.com/en/quote/002833.CN.md) ## Related News & Research - [China April Retail Sales +0.2% y/y (exp 2%) & Industrial Prduction +4.1% y/y (exp 5.9%)](https://longbridge.com/en/news/286699672.md) - [New Home Prices Rise, Hold Steady in Five More Major Chinese Cities in April](https://longbridge.com/en/news/286849542.md) - [China economy slows sharply as investment returns to contraction](https://longbridge.com/en/news/286707036.md) - [China's property investment extends decline in January-April](https://longbridge.com/en/news/286699189.md) - [China new home prices fall at slowest monthly pace in a year in April](https://longbridge.com/en/news/286697169.md)