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Zhang Bin, deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, pointed out that the causes of insufficient demand are complex, but the solution is not to resolve all structural contradictions one by one, but to prioritize “stopping bleeding,” breaking the transmission chain where insufficient demand amplifies itself and prevents it from continuing to expand. Zhang Bin believes that consumption is a slow variable, and it is difficult to boost consumption significantly in the short term, while investment responds faster and is more motivated. Expanding effective investment in the short term can rapidly increase nominal GDP, allowing residents' income, corporate profits, and government taxes to grow simultaneously, thereby providing solid support for consumption.

Zhitongcaijing·12/19/2025 05:01:00
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Zhang Bin, deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, pointed out that the causes of insufficient demand are complex, but the solution is not to resolve all structural contradictions one by one, but to prioritize “stopping bleeding,” breaking the transmission chain where insufficient demand amplifies itself and prevents it from continuing to expand. Zhang Bin believes that consumption is a slow variable, and it is difficult to boost consumption significantly in the short term, while investment responds faster and is more motivated. Expanding effective investment in the short term can rapidly increase nominal GDP, allowing residents' income, corporate profits, and government taxes to grow simultaneously, thereby providing solid support for consumption.