China plans to step up macroeconomic support in 2026, focusing on expanding domestic demand, deepening market reforms, and stabilizing the property sector, officials and experts said. The policy mix will be “proactive and effective,” combining stronger fiscal measures with an appropriately accommodative monetary stance, while emphasizing efficiency, expectation management, and timely implementation.

Fiscal policy will remain active, with spending, deficits, and government debt calibrated to support growth while maintaining room for risk management. Efficiency in allocation will be prioritized, with funds directed toward national strategic priorities and people-oriented investment, translating policy measures into tangible outcomes.

Monetary policy will stay accommodative, with a novel focus on promoting both steady economic growth and a “reasonable rebound in prices.” Expanding domestic demand will be the primary focus, as household consumption drove 71 percent of economic growth in the first three quarters of 2025. Authorities aim to boost household income, promote high-quality employment, and enhance social security to strengthen spending capacity and stabilize consumer expectations. Measures will also encourage inbound tourism and domestic services consumption.

China will continue market-oriented reforms alongside demand-side efforts. Officials plan to accelerate the construction of a unified national market, reducing local protectionism, tackling unfair tax or subsidy arrangements by some local governments, and removing barriers to the free flow of goods, capital, and labor. Experts highlight that the focus is on efficiency rather than uniformity, allowing regions to leverage their comparative advantages while improving overall resource allocation.

Innovation will remain a central driver. China will expand its science and technology hubs, with Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area maintaining global competitiveness. In 2025, the Shenzhen-Hong Kong-Guangzhou cluster ranked first globally on the Global Innovation Index, and Beijing ranked fourth.

Stabilizing the real estate market continues to be a priority. Transaction volumes have steadied, and price declines have moderated, while risks remain manageable. Policy measures will focus on balancing supply and demand and ensuring delivery of presold projects, including through “white list” financing mechanisms. Long-term demand is supported by the gap between China's permanent resident urbanization rate of 67 percent and its household registration urbanization rate of under 50 percent, pointing to continued opportunities for high-quality housing development.