Core Viewpoint - The article emphasizes the need for increased domestic demand policies to sustain economic growth in China during the 14th Five-Year Plan period, particularly focusing on enhancing consumer spending and stabilizing investment growth [1]. Group 1: Consumer Spending - The central economic work conference highlights the implementation of special actions to boost consumption in 2026, aiming to optimize policies and unleash the potential of service consumption [1]. - In 2025, China allocated 300 billion yuan in long-term special bonds to support the replacement of consumer goods, which is expected to drive significant growth in sectors like new energy vehicles and home appliances, thereby increasing retail sales [1]. - The current consumer spending rate in China is 39.9%, which is significantly lower than that of developed countries by 10-30 percentage points, indicating a need for substantial improvement [3][4]. Group 2: Investment Growth - Investment growth in China is projected to decline in 2025 due to various factors, including adjustments in the real estate market and external economic pressures, necessitating measures to stabilize and increase investment [1][11]. - The government is encouraged to increase central budget investments and optimize the implementation of key projects to support economic recovery [1]. - The article suggests that maintaining reasonable investment growth is crucial, especially in infrastructure and public services, to align with urbanization and industrialization processes [11][12]. Group 3: Income Growth and Middle-Income Group Expansion - The article discusses the importance of increasing residents' income to enhance consumer spending, advocating for a plan to raise income levels and improve the distribution of national income [7][8]. - The middle-income group, defined as households earning between 100,000 to 500,000 yuan annually, is crucial for driving consumption, with over 400 million people falling into this category [9]. - Expanding the middle-income group is expected to shift demand structures towards higher-end goods and services, thereby boosting overall domestic consumption [9]. Group 4: Policy Recommendations - To stabilize market expectations, the economic growth target for 2026 should be set around 5%, with a focus on implementing proactive fiscal and monetary policies [6]. - The article recommends various measures to stimulate consumption, including the continuation of replacement policies for consumer goods and the removal of unreasonable consumption restrictions [10]. - It emphasizes the need for structural reforms and increased government investment to enhance public welfare and stimulate private sector investment [13][14].