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China’s Economic Agenda for 2026

As leaders of China convene in Beijing for the annual Central Economic Work Conference, discussions are shaping the nation's economic direction for 2026. The conference, held on December 10 and 11, is seen as a significant indicator of China’s future policies, marking a pivotal moment in the country’s economic strategy.

During this year's meeting, President Xi Jinping delivered an inaugural speech that reflected on economic performance in 2025, assessed emerging challenges, and outlined key priorities for 2026—marking the beginning of the 15th Five-Year Plan (2026-2030). The leaders have articulated a strong focus on a dual approach: "pursuing progress while ensuring stability" and enhancing both the quality and effectiveness of economic measures.

Strengthening Domestic Demand

One of the foremost themes that emerged from the conference was the critical role of domestic consumption as a driving force for economic growth. Policymakers are set to implement targeted measures to stimulate spending, optimize existing policies, and dismantle excessive restrictions that hamper consumer engagement. This concerted effort aims to tap into the latent potential of China's vast consumer services sector.

Data from recent years illustrates the resilience of China's consumer market. In fact, during the first three quarters of 2025, final consumption contributed a remarkable 53.5% to GDP growth, a notable increase of nine percentage points compared to the previous year. From January to October, retail sales soared past 40 trillion yuan (approximately 5.7 trillion USD), showcasing a year-on-year growth of 4.3%, outpacing the previous year's figures.

In an exclusive interview with CGTN, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), underscored the importance of strong domestic consumption for overall economic resilience. She commended China’s commitment to maintaining an open and responsible economy, an ethical approach that aligns with the nation's new Five-Year Plan.

Innovation as a Core Driver

Innovation remains a pivotal aspect of China’s developmental strategy. The nation aspires to establish international innovation hubs across significant regions, including Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Greater Bay Area encompassing Guangdong, Hong Kong, and Macao. Policies aimed at encouraging entrepreneurial innovation, strengthening intellectual property protections in emerging industries, and bolstering the development of artificial intelligence (AI) are expected to take center stage.

According to the Global Innovation Index 2025, China has made impressive gains, entering the top ten for the first time, leading as the best among middle to high-income economies. Noteworthy clusters such as the Shenzhen-Hong Kong-Guangzhou region stand out as the best globally. Bloomberg Economics forecasts a significant increase in China's high-tech sector, growing from 14.3% of GDP in 2023 to nearly 19% by 2026.

Openness and Global Certainty

Openness continues to be one of China's strategic advantages. The conference reaffirmed China’s commitment to expanding institutional and autonomously driven openness in the service sector, competitive advancements in free trade zones, and continued progress on the Hainan Free Trade Port.

Despite global adversities, China's foreign trade showcased resilience, with imports and exports totaling 41.21 trillion yuan from January to November, reflecting a 3.6% increase from the previous year.

A recent global survey conducted by CGTN revealed that 86.7% of respondents believe that China’s ongoing initiatives to enhance domestic consumption will create significant opportunities for international enterprises. Concurrently, 89.1% of respondents remarked that China's persistent expansion in openness would generate greater developmental prospects on a global scale.

As China strides into 2026 with renewed confidence and clarity, the focused agenda holds promise not only for national growth but also for the stability and prosperity of the global economy.