At the CMF Annual Forum (2025-2026) held in Beijing on November 30, Liu Shijin, former Deputy Director of the Development Research Center of the State Council and Vice Chairman of the Economic Committee of the 13th National Committee of the Chinese People's Political Consultative Conference, emphasized that during the "15th Five-Year Plan" period, consumption's share of GDP should increase by 1 percentage point annually. He proposed this as a key task to stabilize economic growth.

Liu warned against excessive new investments and projects in sectors suffering from weak end-demand and severe overcapacity. "While such investments may boost GDP in the short term, they will only exacerbate overcapacity and debt burdens in the next phase," he cautioned.

Addressing the debate on whether to prioritize consumption or investment for economic growth, Liu cited recent data showing severe overcapacity in fixed-asset investments across many regions. He argued that for many market entities, avoiding further investment is a rational choice under current conditions.

"Declining capacity utilization stems from weak end-demand. Only by boosting end-demand can investment be sustainably increased," Liu stated. He stressed that stimulating consumption is the prerequisite for driving meaningful investment growth.

Liu proposed three key recommendations:

1. **Urbanization and Income Growth**: To stabilize growth, urbanization must advance, raising residents' wage and business incomes. 2. **Reducing Inequality in Public Services**: Expansionary fiscal policies should focus on lifting consumption levels and developmental spending among low- and middle-income groups. 3. **Increasing Property Income**: During the "15th Five-Year Plan" period, Liu suggested transferring 20 trillion yuan of state-owned capital to social security funds for capital market operations, alongside short-term fiscal subsidies and long-term contribution mechanisms. This could raise average monthly pension income from 246 yuan to 1,000 yuan by 2030. He also advocated unifying urban-rural land management systems to boost rural residents' property income.

Finally, Liu outlined a vision for China to become a "consumption powerhouse": 1. **Global Consumer Role**: By expanding imports, Chinese consumers should access high-quality, affordable global goods and services—ideally transacted in RMB to strengthen the currency. "The U.S. claims to be the world’s top consumer, but China is fully positioned to take that role," he asserted. 2. **Service Consumption as Human Capital Investment**: Education, healthcare, and social security investments enhance human capital, aligning with innovation-driven societal needs.

The forum discussions highlighted actionable strategies to rebalance China’s growth model toward consumption-driven sustainability.