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Investing in education brings talent dividend

2026-05-11 10:04   CHINA DAILY

Students from Beijing University of Posts and Telecommunications learn to identify meat patterns during a culinary class on campus in Beijing. PROVIDED TO CHINA DAILY

  In the 15th Five-Year Plan (2026-30), China has emphasized the importance of investing in both physical assets and human capital, with education playing a vital role in enhancing the well-being of its people.

  Education should be seen not just as an expense, but as a long-term investment that transforms human resources into core capital for future growth.

  Human capital investment views the population as a dynamic and evolving resource. By improving the allocation of educational resources and strengthening policy design, it enhances people's knowledge, skills, health and innovative capacity.

  Through upgrading the labor force's skill structure, strengthening intergenerational development capacity, and promoting population mobility and integration, education investment improves both the quality and structure of the population.

  This facilitates a shift from reliance on a traditional demographic dividend toward a more sustainable talent dividend that supports long-term economic transformation.

  Such investment should be precise and consider the entire life cycle to address major demographic changes such as declining birth rates, population aging and the demand for quality improvement. To counter falling fertility, it is essential to expand child care services and optimize basic education resources, thereby reducing the cost of raising children.

  For an aging population, education for older adults and vocational training can unlock the potential of the elderly workforce and extend productive working lives.

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