In 2020，China overcomes effect of the Covid-19 outbreak，and residents’ income continues to grow. Meanwhile，the income gap continues to narrow and consumers’ spending will gradually recover. The living environment in urban and rural areas will continue to improve with higher consumers’ confidence level. And confidence towards employment and income will be stabilized and enhanced to a new level. In recent years，the distribution pattern of national income has been improved，and the consumption potential of residents has been released. In order to achieve a good start for the 14th Five Year Plan and promote the rapid growth of urban and rural residents’ income and consumption，the government and relevant departments should pay more attention to：adhering to the principle of common prosperity；implementing the strategy of expanding domestic demand；strengthening the employment priority policy and improving the quality of employment；improving the mechanism of salary and remuneration system；optimizing the structure of residents’ income；improving the level of supply-side quality；stimulating residents’ consumption potential；creating better price-setting environment and improving residents’ consumption expectation.