China’s Ministry of Finance said on Sunday that fiscal policy will be more proactive next year, with a focus on boosting domestic demand, technological innovation, and strengthening the social safety net. The announcement comes at a time when trade partners are urging the world’s second largest economy to reduce its reliance on exports.
In a statement following a two day meeting at which targets for 2026 were set, the ministry said consumption would be increased and investment in new productive forces and overall human development would be actively expanded. It noted that innovative activities would be supported to create new growth engines, while the social security system would be strengthened through improvements in healthcare and education services.
The statement also said efforts would be made to promote integration between urban and rural areas and to accelerate China’s transition toward a greener society. Experts and government advisers indicated that China is likely to maintain its annual economic growth target at around 5% for 2026.
Maintaining this growth target is expected to require accommodative fiscal and monetary policies, given the property sector crisis and ongoing deflationary pressures weighing on the economy. Earlier this month, Chinese leaders also pledged to continue a proactive fiscal policy in 2026 to stimulate consumption and investment.
