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.

We also need to forecast demographic trends, ensure a balanced regional distribution of educational resources, and coordinate education with fertility, employment and elderly care policies.

We have to shift from expanding scale to improving quality, building a resilient education system that can better deliver a talent dividend.

With increasing population mobility between urban and rural areas and across regions, migrant children often struggle with educational integration.

Breaking institutional barriers, such as those related to the household registration system, is essential to ensure educational equity based on the principle of equal rights within the same city.

This involves easing or even abolishing school enrollment thresholds linked to social insurance contributions or residence permits, and removing household registration restrictions for senior high school admissions so that migrant children can compete fairly for quality educational opportunities.

On the fiscal side, funding mechanisms should be improved through transfer payments to support destination areas in providing public education.

Educational process equity has to be promoted through teacher rotation, mixed classes and integrated support systems that combine academic assistance, psychological counseling and social integration services.

Building a lifelong education system requires strong institutional safeguards, open resource sharing and technological empowerment.

Developing a national qualifications framework and a credit bank system can enable mutual recognition among academic education, vocational training and lifelong learning outcomes, lowering barriers to participation.

Universities, enterprises and social organizations can work together to build digital learning platforms offering blended online and offline courses for people of all ages, with particular emphasis on skills training for career transitions and community-based education for older adults.

Technologies such as artificial intelligence can be used to recommend personalized learning pathways and improve accessibility.

Closer integration between industry and education is also essential to deliver training aligned with industrial upgrading and ensure a continuous appreciation of human capital.

Nudging families toward a more rational approach to educational investment requires policy guidance and effective public communication. They need to shift from traditional attitudes that overemphasize academic credentials.

The role of skilled professionals in economic and social development needs greater recognition. A diversified talent evaluation system can be established by combining academic diplomas with vocational skill certificates and improving the national qualifications framework.

Also, the remuneration, social status and career prospects of skilled workers should be enhanced, helping families recognize vocational education as a viable pathway for upward mobility. Better alignment between skills training and the demand in the labor market, along with the promotion of successful role models, can help alleviate education-related anxiety.

Governments can strengthen career guidance services to help families make informed choices based on children's interests, abilities and market trends.

It is crucial that governments anchor education policy in the goal of high-quality population development, ensure balanced provision of inclusive educational resources, fulfill fiscal responsibilities and address gaps in underdeveloped regions and among vulnerable groups.

Sound regulatory mechanisms are also needed to standardize the education market and improve coordination among education, population and employment policies.

The market, in turn, is expected to respond to diversified educational demands by providing differentiated services, deepening cooperation between schools and enterprises and leveraging digital technologies to enhance quality and efficiency.

Families too should make rational choices that align with their children's strengths and social needs, prioritize moral education and holistic development and work in coordination with national population and education strategies.

The author is a member of the Chinese People's Political Consultative Conference National Committee and the director of the Institute for Talent Development Strategy at East China Normal University.

The views don't necessarily reflect those of China Daily.