State Council Plenum Sets Out Steps to Strengthen Domestic Economic Cycle

A plenary meeting of the State Council held in August 2026 set out plans to further strengthen the domestic economic cycle and fully unlock the potential of domestic demand, stressing the need to "coordinate investment in people with the promotion of consumption and increase the allocation of policy resources." The plan treats investment in people and consumption promotion as coordinated priorities and calls explicitly for greater policy resources to be directed toward them.

As the transition between old and new growth drivers accelerates and industrial upgrading advances, China's employment structure and forms continue to evolve. Demand for highly skilled technical talent has risen markedly, some traditional jobs face pressure to adapt, and workers in new forms of employment face greater occupational risk and uncertainty. China's household consumption rate remains generally low. Advancing the granting of urban residency to rural migrant workers in a scientific and orderly manner is an important task for the 15th Five-Year Plan period. Barriers such as the household registration system and ambiguous labor relations mean this group's social security coverage remains limited. These circumstances involve employment, social security and consumption.