Zhang Junkuo, chairman of the China Development Research Foundation and former deputy director of the Development Research Center of the State Council, said at the 2025 Sanya International Forum on Finance and Economics on Saturday that continuing to effectively release consumption potential should take into account both the symptoms and root causes, and that structural measures should be given more prominence to boosting consumption. “In recent years, people are increasingly aware that in addition to short-term market fluctuations, the causes of insufficient demand are also medium- to long-term phased and structural constraints. Moreover, these two factors not only overlap, but also influence and reinforce each other, thus forming a bad cycle of shrinking demand - increasing employment pressure - slowing income growth - weakening wealth effect - further decline in consumption capacity and consumer confidence.” he emphasized. Zhang Junkuo said that countermeasures must not only adopt strong short-term stimulus policies to stop the bad cycle, but also focus on solving deep-seated problems and consolidating the foundation for steady economic growth.

Zhang Junkuo, chairman of the China Development Research Foundation and former deputy director of the Development Research Center of the State Council, said at the 2025 Sanya International Forum on Finance and Economics on Saturday that continuing to effectively release consumption potential should take into account both the symptoms and root causes, and that structural measures should be given more prominence to boosting consumption. “In recent years, people are increasingly aware that in addition to short-term market fluctuations, the causes of insufficient demand are also medium- to long-term phased and structural constraints. Moreover, these two factors not only overlap, but also influence and reinforce each other, thus forming a bad cycle of shrinking demand - increasing employment pressure - slowing income growth - weakening wealth effect - further decline in consumption capacity and consumer confidence.” he emphasized. Zhang Junkuo said that countermeasures must not only adopt strong short-term stimulus policies to stop the bad cycle, but also focus on solving deep-seated problems and consolidating the foundation for steady economic growth.