Blueprint to enhance livelihoods set

China on Monday released a guideline aimed at further safeguarding and improving people's livelihoods, vowing to resolve the most pressing issues facing the public and make basic social services more equitable, inclusive, and accessible.

The guideline — jointly issued by general offices of the Communist Party of China Central Committee and the State Council on Monday — requires the complete removal of hukou (household registration) restrictions for participating in social insurance at the place of employment.

Under the document, the country will provide social insurance subsidies for eligible groups such as college graduates and individuals facing employment difficulties, reasonably increase the minimum wage standards, expand the supply of government-subsidized housing, and encourage the private sector's participation in operating long-term rental housing.

Wei Guoxue, a researcher at the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission, said the document provides a systematic blueprint for the direction and priorities of livelihood development in the new era.

"The guideline focuses on aligning with public expectations and enhancing policy targeting," Wei noted.

"Improving people's living standards is both the starting point and ultimate goal of facilitating domestic economic circulation, and it also serves as a key connecting point for smoothening domestic and international economic flows."

In 2024, consumption contributed 44.5 percent to China's GDP growth, and per capita spending on services accounted for 46.1 percent of total per capita consumption, official data showed.

"There is huge potential for expanding and upgrading household consumption," Wei said. "Investing more in people and better serving people's livelihoods will not only enhance public well-being but also help cultivate new growth drivers, forming a virtuous cycle where economic development and livelihood improvement reinforce each other."

"The document emphasizes strengthening the basic financial guarantee for key livelihood areas and calls for an optimized fiscal expenditure structure," said Fang Lijie, a sociology professor at Renmin University of China.

"It is an essential response to the changes in China's principal social contradiction, and it's crucial for promoting high-quality development and common prosperity."

According to the guideline, local governments are required to optimize the structure of fiscal expenditure, enhance financial guarantees for basic public services and continuously improve supporting policies in key livelihood areas such as education, healthcare, social security, and employment.

Meanwhile, Fang cautioned "relying solely on government funding is neither realistic nor sustainable", calling for more efforts to leverage public funds to attract more social capital and build a multi-stakeholder model where government plays a leading role but responsibilities are shared.

Such market-oriented mechanisms, she argued, will not only ease fiscal pressure but also unlock market vitality and social creativity, enabling a virtuous interaction between social development and economic growth.