The Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development, deliberated and adopted at the Fourth Plenary Session of the 20th CPC Central Committee, explicitly points out that China's development environment faces profound and complex changes during the 15th Five-Year Plan period. Among these changes, insufficient effective demand and bottlenecks in the domestic circulation are important issues that urgently need to be addressed. Unimpeded domestic circulation is the strategic foundation for building a new development pattern. The effective demand, as the core variable in macroeconomic operation, directly affects the smoothness and vitality of economic circulation. Deeply understanding the connotation of effective demand, grasping the mechanism by which its insufficiency obstructs economic circulation, and finding a systematic path to enhance effective demand are of great practical significance for unblocking bottlenecks in domestic circulation and promoting high-quality economic development.
This article proposes the following policy recommendations.
1. Increase residents' income and employment levels, and strengthen the foundation for boosting effective demand.
2. Optimize the consumption environment and policies to unleash the effective demand potential.
3. Expand effective investment and optimize the supply structure.
4. Build a unified national market and facilitate the flow of factors.
