China will see its investment shifting from physical assets to human resources in the 15th Five-Year Plan period (2026–2030) to sustain high-quality development, according to a senior economist.
Huang Hanquan, head of the Chinese Academy of Macroeconomic Research affiliated to the National Development and Reform Commission, noted that the focus on coordinating investments in physical assets and human resources is a highlight in the communique of the fourth plenary session of the 20th Central Committee of the Communist Party of China (CPC).
The session was held from Monday to Thursday in Beijing, where participants deliberated over and adopted the Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for Economic and Social Development.
"Coordinating investments in physical assets and human resources was brought out in the communique. This is a timely adjustment as social and economic development has entered a new stage. In the past, infrastructure dominated investment, but the space and potential for such investment have narrowed after it reached the peak or plateau period. We must therefore pivot from investing in things to investing in people in a timely manner," said Huang.
Huang said that scientific and technological innovation is the prime engine of high-quality development, and behind innovation lie two key factors -- advancing technology and upgrading human resources. The main channel for improving human resources is to invest in people.
"We should invest across the entire life cycle, from children's birth, care and education, to professional training after people enter the workforce, and to the silver economy for aged ones. We need to adjust our fiscal spending and investment structures to people's needs and full development across the lifetime," he said.
China will continue to raise its innovation capacity across the board, strive to take a leading position in scientific and technological development, and keep fostering new quality productive forces, according to the communique. Huang also emphasized the importance of the practical application of more research and development fruits of scientific and technological innovation.
"In the 15th Five-Year Plan period, we must pursue high-level self-reliance in science and technology to generate a steady stream of frontier and even disruptive innovations, promote the in-depth integration of sci-tech and industrial innovations, and enable more breakthroughs to go out of the laboratory to the factory floor and farmland," he said.
China to expand human capital investment in next five years: expert
