Abstract: Currently, the overall growth rate of China’s economy is sluggish, with a distinct weakness in total demand. Economic transformation is a potent measure to promote economic growth. The process of economic transformation mainly includes two aspects: transitioning to a higher-level industrial structure and shifting towards an enhanced consumption-driven model. From the perspective of industrial structure, China’s industry is gradually transitioning towards higher-end manufacturing and modern services, which can be validated by economic data and capital markets. From the perspective of consumptiondriven transition, the impact of the pandemic has significantly weakened the consumption capacity of the working-age population, creating a strong contraction effect on the economy and obstructing the shift towards higher consumption. In the current economic environment, appropriate measures should be taken to stimulate consumption and stabilize the long-term expectations of the working-age population, focusing on promoting consumption growth as the main thrust of economic transformation.
