China's Economic Agenda: Proactive Policies and Structural Reforms

China plans to boost domestic demand and economic growth with proactive fiscal and monetary policies in 2026. Despite global challenges, it aims for a 5% growth target, addressing issues like weak consumer demand and structural imbalances. Focus will be on trade diversification and economic reforms.

China is poised to expand its domestic demand while supporting the broader economy through proactive policies in 2026, as outlined by the Politburo, a key decision-making body of the ruling Communist Party, according to Xinhua, the state media.

Analysts suggest that more fiscal and monetary measures, including a high budget deficit and interest rate cuts, will help China maintain its growth target at around 5%, leveraging its robust exports. Despite a trade truce with the U.S., China plans to diversify markets by strengthening ties with Southeast Asia and other emerging economies.

Emerging challenges like a property slump and weak consumer demand have prompted a renewed focus on structural economic reforms. While policymakers consider rolling out more stimulus, they are also prioritizing household consumption and balancing the economy, steps that will be crucial as China sets key strategies at the upcoming Central Economic Work Conference.