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Xinhua Digest reprinted a paper in full text co-authored by Professor He Jingtong and PhD student Zhao Zimu from School of Economics, Nankai University, which is titled Consolidate Strategic Basis for Expanding Domestic Demand through Effective Investment, in Issue 10 of 2023. The article was originally published in Issue 4 of 2023, National Governance Weekly.

The article points out that the combination of implementing the strategy of expanding domestic demand with intensifying supply-side structural reform deeply aligns with the current backdrop and practical needs in China. Currently, a lack of effective supply has become a key factor hindering the expansion of domestic demand, which calls on us to make effective investment, in order to optimize the supply structure, fill the supply and demand gap, and achieve a balance between supply and demand. The authors believe that from a macro perspective, we can better grasp the core feature of current social investment in China, or investment convergence. Meanwhile, by analyzing the changes in the nature of effective investment at different stages of economic development, we can understand the “inverted U-shaped implications” of investment convergence on the economy. Therefore, the article stresses that weakening investment convergence is an important way to expand effective investment, which is also helpful in expanding domestic demand in the future.

Founded in 1979, Xinhua Digest, a large authoritative journal sponsored by People’s Publishing House, and edited and published by Xinhua Digest Magazine under the jurisdiction of State Administration of Press, Publication, Radio, Film and Television, publishes theoretical, comprehensive and informative abstracts. It is well-known at home and abroad for its ideologically and academically keen insights, widely recognized status and high readability, and is China’s most influential abstract journal of philosophy and social sciences.