The article focuses on the economic strategy of adhering to domestic demand as the leading force and building a strong domestic market. Three scholars pointed out in their discussion that the shift from expanding domestic demand to making it the leading force represents a profound strategic choice, marking a transformation in the logic of economic development. Consumption is the key to making domestic demand the leading force. China has entered a critical period of upgrading its consumption structure, requiring a leap from quantity to quality in consumption. At the same time, consumption and investment are interdependent, necessitating the breaking of old patterns and the establishment of a new balance. Taking the major project investments and consumption promotion measures in Shanghai in 2025 as an example, the article explores the focal points for unleashing the potential of domestic demand.

Professor Zhang Yina posits that the pivotal shift from expanding domestic demand to demand-led growth fundamentally requires restructuring economic drivers and operational logic—a strategic paradigm shift from scale expansion to quality-first, circular economy principles. To upgrade consumption patterns, leveraging China's super-large market advantages and addressing evolving consumer needs through multi-pronged approaches is essential. Consumption and investment are mutually reinforcing: consumption upgrades guide investment priorities, while investment serves as the key driver for expanded reproduction, creating conditions for consumption. To achieve synergy, consumption upgrades should steer investment directions, with effective investment supporting consumption expansion. By removing institutional barriers, a virtuous cycle can be established. Shanghai, as an international consumer hub, can unlock domestic demand potential through four strategic dimensions.

Translated by Yiqian YANG

Full text in Chinese available at:

https://fddi.fudan.edu.cn/a1/0c/c18965a762124/page.htm