Guo Lanfeng: Improving consumer purchasing power requires income distribution reform, which more fully reflects the value of labor.

On June 25th, Guo Lanfeng, President of the Chinese Economic System Reform Research Association, stated at the 2026 Summer Davos Forum that in order to expand consumption or domestic demand, it is necessary to have consumption ability. In addition to high-quality employment, improving consumption ability also requires income distribution reform. In recent years, there has been a growing call from various sectors of society for income distribution reform, because labor is at a disadvantage in income distribution. A large amount of consumption comes from ordinary workers, so income distribution system reform may need to gradually allow labor value to be more fully reflected in the overall economic cycle.