The 20th China CFO Conference, guided by the Ministry of Finance and hosted by New Finance Magazine, was recently convened in Beijing. Ma Haitao, President and Party Committee Deputy Secretary of the Central University of Finance and Economics, delivered a keynote speech titled "How Fiscal Policy Can Promote the Coordinated Development of 'Investment in Physical Capital' and 'Investment in Human Capital'."
Ma Haitao emphasized that the "15th Five-Year Plan" explicitly calls for "adhering to the strategic basis of expanding domestic demand, and closely integrating the improvement of people's livelihoods with consumption promotion, as well as 'investment in physical capital' with 'investment in human capital'." In this context, achieving a synergistic fiscal effort between these two types of investment is a crucial measure and an essential requirement for promoting high-quality development and serving the construction of Chinese modernization.
From a historical perspective, Ma noted that fiscal policy has already achieved significant results in promoting this synergy, which can be summarized in three parts. First, fiscal efforts in 'investment in physical capital' have driven the leapfrog development of infrastructure systems. Second, a fiscal focus on 'investment in human capital' has strengthened the social safety net. Third, the continuous deepening of fiscal and tax system reforms has steadily solidified the institutional foundation for the coordinated development of both investment types.
Regarding inherent logic, Ma stated that prioritizing both physical and human capital is an inevitable requirement stemming from the evolution of China's principal social contradiction and is essential to the nature of Chinese modernization.
On basic principles, Ma outlined two key aspects for fiscal policy to advance this coordinated effort. First, it must strive to the utmost while acting within its means, actively responding to public needs without exceeding the current stage of development or fiscal capacity. Second, emphasizing 'investment in human capital' does not imply weakening 'investment in physical capital'; the two are not a zero-sum game but are mutually supportive and synergistic.
Finally, from a policy pathway viewpoint, Ma suggested that fiscal promotion of this synergy can proceed from two angles: optimizing fiscal policy tools and deepening the reform of the fiscal and tax system.
The conference also hosted the award ceremony for the "2025 Chinese Enterprise Financial Management Practice Cases" selection. In his address at the ceremony, it was highlighted that first-class enterprises are invariably supported by first-class financial management systems. In this data-driven era, the ability to transform data into decision-making power and to shift finance from a "cost center" to a "value engine" is key to seizing market opportunities and achieving sustainable, long-term growth.
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