Chinese experts have unveiled bold strategies to supercharge the nation’s economy by investing $14 trillion in its people over the next decade. At two major events in Haikou, the capital of south China’s Hainan Province, economists highlighted plans to stimulate domestic consumption and transform Hainan into a global trade powerhouse.
Investing in People for Economic Growth
At a conference on consumption development, Chi Fulin, president of the China Institute for Reform and Development, emphasized the need to enhance consumer confidence. “Cautious consumer sentiment threatens our economic resilience,” Chi said. He proposed a massive investment in education, healthcare, and urbanization to unlock the spending power of China’s 1.4 billion people.
“By prioritizing human capital, we can turn our vast population into a sustainable engine for growth,” he noted. Chi highlighted that boosting service-sector consumption in rural areas is key to upgrading the economy.
However, challenges remain. Zhao Jinping, a former researcher at the Ministry of Commerce, pointed out that high household savings—still above 45 percent—reflect anxieties about job security and social welfare. “Consumers won’t spend unless they feel financially secure,” Zhao warned. He suggested leveraging digital industries to increase rural incomes, reforming land rights to unlock agricultural wealth, and strengthening safety nets for workers.
Transforming Hainan into a Global Trade Hub
At another symposium focused on the Hainan Free Trade Port, experts discussed plans to make Hainan a showcase of high-level openness. Chi Fulin stressed that the port’s planned “closed-loop” customs system, which would separate the island from mainland tariffs, could make it a “shock absorber” against global trade pressures.
Other experts proposed expanding visa-free entry for tourists, attracting international universities and hospitals, and aligning regulations with international standards like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These moves aim to position Hainan as an international tourism and consumption hub, luring high-spending global visitors.
Global Collaboration to Revive Free Trade
Amid rising protectionism worldwide, Chinese think tanks are seeking global partnerships. The China Institute for Reform and Development announced a collaboration with the World Free Zones Organization to launch the “World Free Trade Forum” in October.
“Free trade remains the world’s most vital public good,” Chi said. He also suggested that Hainan could host the 2026 APEC Leaders’ Meeting, solidifying its role as a global policy hub.
