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Economic priorities set for 2026

Conference:?Nation to boost domestic market

By CAO DESHENG | chinadaily.com.cn | Updated: 2025-12-11 23:36
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Xi Jinping, general secretary of the Communist Party of China Central Committee, Chinese president and chairman of the Central Military Commission, delivers an important speech at the annual Central Economic Work Conference in Beijing, capital of China. The conference was held in Beijing from Wednesday to Thursday. [Photo/Xinhua]

China has pledged to build a robust domestic market to bolster its economy and counter external challenges, as it set out priorities for next year's economic policy at the two-day annual Central Economic Work Conference, which concluded on Thursday.

Xi Jinping, general secretary of the Communist Party of China Central Committee, delivered a speech at the conference.

In his speech, Xi, who is also Chinese president and chairman of the Central Military Commission, reviewed economic progress in 2025, analyzed the current economic situation, and laid out priorities for economic work in the next year.

By setting a clear agenda for 2026, the Central Economic Work Conference aims to navigate China through its economic challenges while seizing opportunities for high-quality growth.

While highlighting the need to continue to expand domestic demand, the conference urged efforts to advance the construction of a unified national market in greater depth and develop new quality productive forces tailored to local conditions, to promote "effective qualitative improvement" and "reasonable quantitative growth" in the country's economy.

A statement released after the meeting said that, to achieve better performance in economic work under the new circumstances, "we must strengthen our capabilities to cope with external challenges", highlighting the importance of enhancing policy support as well as promoting reform and innovation.

Acknowledging that numerous long-standing issues and new challenges still remain in the country's economic development, the conference noted the growing impact of changes in the external environment on the country's economic growth, the prominent contradiction of strong supply and weak demand in the domestic market, and risks and hidden dangers in key areas.

Most of the problems are coupled with development and transformation, and can be resolved through efforts, the statement said, adding that the supporting conditions and fundamental trend of long-term, positive economic growth in China remain unchanged.

Setting the tone for next year's economic work, the conference emphasized the need to adhere to the overarching principle of "seeking progress while maintaining stability", and better coordinate domestic economic work and endeavors in the international economic and trade arena, as well as development and security.

It is important to fully align incremental policies with existing ones, and strengthen countercyclical and cross-cyclical adjustments to effectively enhance the efficiency of macroeconomic governance, the statement said.

The nation will continue exerting a more proactive fiscal policy and a moderately accommodative monetary policy next year, the statement said, adding that when formulating monetary policy, both promoting stable economic growth and allowing a reasonable rise in prices are important aspects that should be taken into consideration.

It is essential to flexibly and efficiently use various policy tools such as reserve requirement ratio cuts and interest rate cuts to maintain ample liquidity, and guide financial institutions to strengthen support for expanding domestic demand, technological innovation, and small and medium-sized enterprises, the statement said.

China will maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, it added.

As one of the priorities for next year's economic agenda, China plans to boost its domestic market by implementing a consumption enhancement campaign and urban-rural income growth plans, optimizing consumption policies, removing unreasonable restrictions that hinder consumption, and stimulating service consumption potential, according to the statement. Investment will be stabilized with measures such as an increase in central budget investment, effective use of local government bonds and high-quality urban renewal.

The conference underlined the need to promote innovation-driven growth to enhance the fresh growth drivers for the country's economy. Major international science and technology innovation centers will be established in Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area.

The conference outlined plans for comprehensive reforms to enhance market vitality, including efforts to advance the construction of a unified national market, address rat-race competition, reform State-owned enterprises, and promote development of the private economy. Efforts to tackle issues such as overdue payments to enterprises and deepen the comprehensive reform of investment and financing in the capital market were also highlighted.

China will continue to expand opening-up to advance win-win cooperation across multiple fields, with a focus on advancing institutional opening-up and expanding openness in the service sector, the statement said.

The development of free-trade zones and the Hainan Free Trade Port will be prioritized, along with efforts to boost digital and green trade and promote high-quality development of the Belt and Road Initiative, it said.

The conference highlighted a cautious approach to managing risks in the real estate sector and local government debt. Measures will be taken to stabilize the housing market and build a new development pattern for the real estate sector, the statement said.

caodesheng@chinadaily.com.cn

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