ACCEPT Report: "Paradigm Reconstruction of the Developmental Government: A Government and Economics Analysis of High-quality Development-China's Current Economic Performance and Development Directions for the 15th Five-Year Plan Period"

Title: Paradigm Reconstruction of the Developmental Government: A Government and Economics Analysis of High-quality Development-China's Current Economic Performance and Development Directions for the 15th Five-Year Plan Period

Authors: ACCEPT Macro Forecasting Group (Group Leader: Ke'aobo Li; Deputy Group Leader: David Daokui Li, Peilin Liu; Group Members: Shuyu Wu, Bing Li, Lin Lu, Meixin Guo, Zhangkai Huang, Shaobo Long, Dapeng Chen, Ming Feng, Lin Fu, Xiang Xu, Jinjian Shi, Xingye Jin, Chi Zhang, He Zhang, Kun Lang, Yuntao Hou, Lujia Li, Zihang Wang, Xiang Chen, Yaping Li, Jiabao Song, Junyi Dai, Yuchuan Zheng, Bowei Xu; Main Contributors: Shuyu Wu, Xiang Chen, Bing Li, Meixin Guo, Lin Lu)

Language: Chinese

Publication: Reform, Vol. 1, No. 383, January 2026, 1003-7543: 45-67.

English Abstract: 

Despite China's substantial long -term growth potential, actual economic growth has persistently fallen short of its potential rate, reflecting structural bottlenecks in economic operations. This report argues that the core reason for insufficient growth momentum lies in the lag of China's transformation of government functions behind the transition in its stage of economic development. To address this challenge, China needs to upgrade its developmental -government paradigm from an investment- and production-oriented model toward a new paradigm centered on stimulating consumption and improving social welfare. Specifically, this report proposes advancing reforms along four key dimensions—human resources, real estate, artificial intelligence, and international trade—through the establishment of four corresponding committees: the Human Resources Development Committee, the Real Estate Development Committee, the Artificial Intelligence Development and Governance Committee, and the Trade Balance Development Committee. These institutions would be tasked with designing appropriate government incentive mechanism to promote investment in people, stabilize the real estate market, strengthen social governance of artificial intelligence, and foster a new form of globalization. In addition, the report recommends implementing a temporary mortgage interest subsidy program to stabilize the housing market and improve economy-wide expectations. This report concludes that these measures would effectively bolster China's economic performance in 2026, ensure a strong start to the 15th Five-Year Plan period, and provide sustainable endogenous momentum for high-quality development.