Upping public sector investment a remedy for consumption slump

Since the fourth quarter of last year, the overall perceptions of China's macroeconomy have changed. Seen from both data and market sentiment perspectives, overall market confidence and expectations have improved. However, concerns persist.

While there are some bright spots in the real economy, it has yet to fully emerge from the dilemma of insufficient demand. The economy is currently in a "climbing" phase. This ongoing phase is crucial — if policies can intensify and provide a push, it can fully escape the trap of insufficient demand, leading to smoother development in the future. But if the policy response is weak, the climb will be very difficult, and the economy may struggle to break through or take longer to recover from insufficient demand.

The Central Economic Work Conference and the Government Work Report from the two sessions have already outlined the proper direction. The next step is to further optimize policies in line with the latest macroeconomic changes in order to more rapidly escape the predicament of insufficient demand.