Hou Yaowen: Grasping the Dialectics of "Investing in Things" and "Investing in People"
Promoting the coordinated development of "humanity" and "objects" is a core task in the process of Chinese-path modernization. On May 5, 2023, General Secretary Xi Jinping emphasized at the first meeting of the 20th Central Financial and Economic Affairs Commission the need to closely integrate "investing in objects" with "investing in people." The Suggestions of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development, deliberated and adopted by the Fourth Plenary Session of the 20th CPC Central Committee, explicitly proposed to "adhere to the strategic base point of expanding domestic demand; persist in the close integration of improving people's livelihoods with promoting consumption, and investing in objects with investing in people; lead new supply with new demand and create new demand with new supply; promote the benign interaction between consumption and investment, and supply and demand; and enhance the endogenous power and reliability of the domestic dual circulation." Similarly, the 2025 Central Economic Work Conference listed "persisting in the close integration of investing in objects and investing in people" as one of the new understandings and experiences gained in conducting economic work under the new situation. On January 20, 2026, General Secretary Xi Jinping further emphasized at the opening of a study session for provincial and ministerial-level leading officials on implementing the guiding principles of the Fourth Plenary Session of the 20th CPC Central Committee the need to "persist in the close integration of improving people's livelihoods and promoting consumption, and investing in objects and investing in people." These important expositions and major deployments have pointed the way toward resolving development dilemmas, strengthening development momentum, and cultivating development advantages under the new situation.
I
"Persisting in the close integration of investing in objects and investing in people" is both a development concept and a development strategy. It reflects our Party's strategic wisdom in rooting itself in national conditions while facing the future, promoting the well-rounded development of individuals and comprehensive social progress through Chinese-path modernization.
"Investing in objects" [1] refers to the allocation of funds and resources to enhance material production capacity and the level of living infrastructure. Through this investment, one achieves the elevation of productive forces, the expansion of economic scale, and the improvement of living conditions. Its primary manifestation is the continuous input into material factors of production—such as means of production, infrastructure, science and technology, and product reserves. The main goal lies in realizing the enhancement of productive capacity and the expansion of the scale and system of "objects." Under socialist conditions, "investing in objects" is essentially a conscious means of serving the growth of the overall material wealth of society and focusing on meeting the needs of the masses.
"Investing in people" refers to the allocation of funds and resources to enhance people's knowledge and skills, practical abilities, health levels, cultural literacy, and moral character, as well as other fields that promote the free and well-rounded development of individuals. The goal is to facilitate the comprehensive development of humans and drive social development and prosperity. Under socialist conditions, the value orientation of "investing in people" lies in overcoming the one-sidedness of the individual and moving toward comprehensive development marked by "free individuality" [2]. This entails not only cultivating more creative laborers but also fostering social subjects with higher spiritual realms and cultural refinement.
"Investing in objects" and "investing in people" constitute a unity of opposites. Their opposition is manifested in the competitiveness of resource allocation and the differences in return cycles. For example, regarding the competitiveness of resource allocation, under conditions of limited resources, "investing in objects" may crowd out a portion of the resources for "investing in people," and vice versa. Their unity is manifested in their mutual interdependence and mutual promotion, constituting the "two wheels of a cart or the two wings of a bird" [3] for socio-historical development. "Investing in objects" is a means to promote human development, providing the indispensable material foundation for "investing in people." Meanwhile, "investing in people" provides the practical dynamic support and font of wisdom for "investing in objects." "Objects" are the means, while "people" are the end. The ultimate value orientation of their combination is to ensure that economic operations truly serve the "confirmation of the essential powers of man" [4]. Persisting in the close integration of these two forms of investment is not only a significant manifestation of the superiority of the socialist system but also an inevitable requirement for advancing Chinese-path modernization. It emphasizes both the solidification of the material-civilization foundation of modernization and highlights a social development orientation centered on the modernization of the person, realizing the historical unity of social progress and the free and well-rounded development of individuals.
II
The important thesis of "persisting in the close integration of investing in objects and investing in people" profoundly reflects the deepening of our Party's understanding of the laws of economic development, the enrichment of its understanding of the laws of social development, the expansion of its understanding of the laws of Chinese-path modernization, and the sublimation of its understanding of the laws of human development under the new situation.
As the most proactive and creative factor, the human being is the source of technological innovation, industrial upgrading, and management optimization. The fundamental momentum for sustainable growth lies in people, and the core is "investing in people." If one relies solely on the input of material factors, it will inevitably lead to diminishing marginal returns on investment. At present, as China's economy shifts toward high-quality development, talent has become a key resource. Persisting in the close integration of investing in objects and people essentially follows the law of the transition in economic growth drivers. This means that under the new situation, economic operations must realize a shift from extensive growth based on scale and speed to intensive development based on quality and efficiency, and from reliance on traditional factor dividends to the stimulation of talent and innovation dividends.
From the perspective of historical materialism, social development has two scales: the scale of productive forces and the scale of human development. Our Party’s emphasis on "persisting in the close integration of investing in objects and investing in people" reflects the internal unity between material production, the transformation of social relations, and the process of the free and well-rounded development of individuals. Economic and social development must not only improve material production and living conditions through "investing in objects" but also improve the various safeguards concerning the development of social members' abilities, acquisition of opportunities, and realization of value through "investing in people." This combination can promote both material prosperity and the realization of social equity, justice, vitality, order, and sustainable, inclusive development at a higher level.
Chinese-path modernization is a modernization in which material and spiritual civilizations are coordinated. This unique attribute dictates that we cannot replicate the old path of Western modernization, which is centerd on capital and characterized by bloated materialism. A powerful material and technological foundation is the hardware support for modernization, while achieving common prosperity and promoting the well-rounded development of people and comprehensive social progress are internal requirements of Chinese-path modernization. Persisting in the close integration of investing in objects and people reflects that, under the new situation, our Party's understanding of the essential connotation of Chinese-path modernization has become more profound and comprehensive, and its understanding of the laws of building Chinese-path modernization continues to deepen and expand.
Persisting in the close integration of these two investments objectively requires viewing "the person" as the fundamental purpose, core resource, and ultimate value of development, rather than as an instrumental factor in the production process. This means we must both respect and give play to human subjectivity and develop human practical potential, while also safeguarding people's legitimate rights and interests and satisfying their multi-level, diversified needs. We pursue the growth of objects while emphasizing the realization of human progress, ensuring that economic and social development is always filled with humanistic care and value warmth.
III
"Persisting in the close integration of investing in objects and investing in people" is both a key component of building a powerful domestic market and accelerating the construction of the new development pattern during the 15th Five-Year Plan period, and an internal requirement for promoting high-quality economic and social development. On the new journey, we must, on the basis of deeply grasping the dialectics of "investing in objects" and "investing in people," scientifically advance the integrated deployment of both.
We must persist in the unity of deepening supply and creating demand, better promoting the balance of supply and demand through the benign interaction between coordinating the expansion of domestic demand and deepening supply-side structural reform. Economic development is a process in which supply and demand mutually influence and continuously upgrade. The upgrading of "human" needs guides the direction of investment in objects, while the innovation of the supply of "objects" further elevates the level of human consumption. Currently, the key to resolving the structural imbalance of "strong production and weak consumption" lies in constructing a benign interaction mechanism between releasing consumption potential and creating effective demand. On one hand, we must persist in investing in people, increasing resident income through investments in education, healthcare, elderly care, and the enhancement of human capital, so that residents feel confident in spending and their consumption capacity is strengthened. On the other hand, we must create potential and new quality demand through investing in objects, ultimately achieving a dynamic balance between supply and demand through the benign interaction between economic development and the improvement of people's livelihoods.
We must persist in combining talent factors with industrial factors, better consolidating the foundation of development through the benign interaction between the reform of the talent cultivation system and industrial upgrading. This interaction intrinsically requires the simultaneous mapping and rational matching of the "talent map" and the "industrial map." Based on the development planning of the "industrial map," we should guide the directional adjustment of the talent cultivation system to achieve "determining talent by industry." Through the "talent map," we can evaluate regional skill advantages and innovation potential to provide human capital support for industrial upgrading and emerging layouts, achieving "promoting industry through talent." Thus, "investing in objects" should be based on the "industrial map’s" strategic depiction of regional industrial structures, key clusters, technological paths, and spatial layouts to clarify the layout of industrial development; "investing in people" should be based on the "talent map’s" systematic characterization of existing talent scale, structure, skill distribution, and education supply capacity to optimize the supply of human resources.
We must persist in the unity of systematic planning and dynamic adjustment, better optimizing the investment structure through the benign interaction between overall coordination and specific allocation. On one hand, based on a macro-strategic perspective, we must use long-term planning and top-level design to ensure that the investment layout resonates at the same frequency as national development goals, ensuring that the direction, proportion, and focus of resource input always serve the overall strategic needs of the country. On the other hand, based on the development stages and actual conditions of different regions and industries, we must scientifically allocate limited resources and establish dynamic monitoring and evaluation mechanisms to timely control investment intensity, focus, optimal ratios, and investment benefits, preventing structural imbalances.
We must persist in the unity of development efficiency and equitable distribution, better enhancing the vitality of economic development through the benign interaction between an effective market and a proactive government. On one hand, let the effective market play the decisive role in resource allocation, guiding capital and talent toward high-efficiency fields through price signals and competition mechanisms, and pushing "object" investment to focus on tackling bottlenecks in key areas while "human" investment connects with key technical skill requirements. On the other hand, let the proactive government better fulfill its role by guiding macro-policies, improving the institutional system, and providing public services to make up for market deficiencies in long-term, foundational, and inclusive fields. This will realize the organic connection and deep integration of "investing in objects" and "investing in people," enhancing the systemic, coordinated, and sustainable nature of economic and social development.
We must persist in the unity of a domestic and international outlook, better winning competitive advantages through the benign interaction between opening up to the outside world and internal empowerment. International competition is essentially a contest of comprehensive national strength. It is manifested in the competition of "hard power" in objects—such as infrastructure, technical equipment, and industrial chain levels—but it also relies on the support of "soft power" in humans, such as talent quality, innovation capacity, and skill structures. Therefore, in international competition, "investing in objects" should increase R&D, upgrade the industrial base, and optimize supply chain networks to directly enhance the efficiency and resilience of domestic enterprises in the global market. In terms of internal empowerment, "investing in people" should, through education enhancement, vocational training, and innovation incentives, improve the overall quality and comprehensive ability of laborers to adapt to changes and participate in the international division of labor, thereby enhancing the global competitiveness of the workforce.