Core Viewpoint - The article emphasizes the significance of effective government investment during the current phase of unconventional counter-cyclical macroeconomic regulation, highlighting its "key" role in expanding domestic demand [1][8]. Summary by Relevant Sections Understanding Effective Investment - Effective investment by the government differs from competitive market investments made by enterprises, focusing on public goods and infrastructure related to market failures [9]. - The combination of proactive fiscal policies and moderately loose monetary policies is crucial for effective investment, aiming to boost employment and market demand [9][11]. - Short-term investments should be aligned with long-term structural optimization to enhance development momentum [11][12]. - Infrastructure projects should be planned with an "appropriate advance" to ensure their effectiveness, avoiding both excessive and insufficient foresight [12][14]. - The concept of "positive externality" in investment reflects broader societal benefits beyond direct financial returns, as seen in projects like the Qinghai-Tibet Railway [15]. - Government investment can stimulate private sector investment by improving the overall economic environment and market confidence [16]. - Effective investment requires feasibility studies and high-quality operational plans to ensure project success [17]. Key Areas of Government Investment - Current government investment focuses on major national strategies and enhancing security capabilities in key sectors [17]. - The construction of sponge cities and comprehensive drainage systems is highlighted as a priority, with lessons learned from past failures in urban infrastructure [18][21]. - The integration of urban transportation systems, including subways and parking facilities, is essential for modern urban living and should be prioritized in planning [21][22]. - There is significant potential for investment in areas such as old residential building renovations and rural revitalization, which can drive economic growth [22][23]. - The availability of production factors like steel, cement, and labor is not a constraint; rather, the challenge lies in creating effective mechanisms for investment [23].

Core Viewpoint - The article emphasizes the strategic significance of expanding effective government investment in China through the "implementation of major national strategies and security capacity building in key areas," which supports the "new two-step" modernization agenda and combines supply-side structural reform with counter-cyclical regulation to stimulate domestic demand [1][4][37]. Group 1: Effective Investment and Economic Context - The current economic environment necessitates a focus on effective government investment, particularly during periods of economic downturn, to stimulate growth and enhance overall economic performance [1][8][21]. - The concept of "comprehensive performance" is introduced, which transcends traditional cost-benefit analysis by considering long-term benefits and positive externalities associated with government investments [4][12][38]. - The need for "appropriately ahead of schedule" investments is highlighted, suggesting that long-term infrastructure projects should be planned with foresight to maximize their impact [4][12][17]. Group 2: Investment Scenarios and Mechanisms - The article identifies various scenarios for effective government investment, including the construction of sponge cities, which are crucial for disaster prevention and urban resilience [2][26][27]. - It discusses the importance of innovative financing mechanisms, such as special bonds and public-private partnerships (PPP), to support these investments and ensure their sustainability [2][29][35]. - The necessity of a coordinated approach in government investment planning is emphasized, advocating for a unified strategy that aligns national and local investment efforts [25][39]. Group 3: Challenges and Recommendations - The article acknowledges challenges in measuring the effectiveness of government investments, particularly in terms of direct economic returns versus broader social benefits [12][13][15]. - Recommendations include enhancing the management of public debt and optimizing investment strategies to ensure that government spending translates into tangible economic benefits [31][34][36]. - The importance of addressing the needs of the private sector and improving the investment climate for private enterprises is also discussed, highlighting the role of government in fostering a supportive environment for economic growth [21][22].