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The Economic Agenda of China for 2026: A New Direction

On December 10 and 11, 2025, Chinese leaders gathered in Beijing for the annual Central Economic Work Conference, a pivotal event that delineates the country’s economic course for the coming year. This year’s conference emphasized China’s commitment to bolstering domestic demand, fostering innovation, and enhancing openness at a high level. The discussions and decisions made during this conference signal not just a recommitment to long-standing goals but also a new sense of confidence and clarity in China’s economic policy as it enters 2026.

The Meeting Highlights

Chairman Xi Jinping played a significant role in the conference, delivering a keynote address that reviewed the economic indicators of 2025, acknowledged the challenges that have emerged, and set forth priorities for the upcoming year, which marks the beginning of the 15th Five-Year Plan (2026-2030). Participants identified the pressing need to focus on "seeking progress while ensuring stability" and improving both quality and efficiency in economic activities.

Eight core objectives were set forth: fueling domestic demand, supporting innovation, deepening reforms, enhancing openness, fostering low-carbon development, and improving the living standards of the populace. This strategic focus reflects a clear and coherent policy direction as China heads into 2026, equipping the economy with stability and opportunities amidst a complex global landscape.

Domestic Demand as a Growth Engine

One of the conference's major takeaways was the emphasis on the growth of internal consumption as a critical priority for the next year. To achieve this, the government plans to implement various measures aimed at stimulating consumer spending. These measures include optimizing the "two new" policy, which calls for significant upgrades in machinery and allows for trade-ins of older consumer goods. Additionally, the government aims to eliminate irrational restrictions within the consumer sector, unlocking the potential of service consumption.

Impressive statistics support this commitment to bolstering consumption: the consumer market in China showed remarkable resilience in 2025. For the first three quarters, final consumption expenditures contributed to 53.5% of GDP growth, representing an increase of nine percentage points compared to the previous year. Furthermore, retail sales of consumer goods between January and October exceeded 40 trillion yuan (approximately 5.7 trillion US dollars), marking a 4.3% increase from the previous year, surpassing last year's growth figures.

Kristalina Georgieva, Managing Director of the IMF, stressed the vital role of domestic consumption in maintaining economic stability during an exclusive interview with CGTN. She praised China’s commitment to an open and responsible economic framework, highlighting how this approach aligns with the country’s consumption-oriented strategy outlined in the new Five-Year Plan.

Innovation Driving New Growth

Innovation will remain an essential growth driver for the Chinese economy. The government is making significant strides in establishing international innovation centers in key regions, such as Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area. Policies are being put in place to promote corporate innovation, strengthen intellectual property protection in emerging sectors, enhance service sector capabilities, and support AI development through improved governmental management and financial technology integration.

As reflected in the 2025 Global Innovation Index, China has made its mark by entering the top ten for the first time, leading among 36 countries with higher middle-income levels. Innovation clusters within China are at the forefront globally, with the Shenzhen-Hong Kong-Guangzhou area ranking first worldwide. According to Bloomberg Economics, China's high-tech sector, including AI, is projected to grow from 14.3% of GDP in 2023 to nearly 19% by 2026.

An Open China Instilling Global Confidence

Openness remains one of China's strategic advantages. The conference affirmed China's commitment to expanding institutional and autonomous openness in the service sector, optimizing the placement of free trade zones, and developing the Hainan Free Trade Port.

Despite global challenges, China's external trade has shown resilience this year. From January to November, the total volume of imports and exports reached 41.21 trillion yuan, a 3.6% increase from the previous year.

A recent global survey conducted by CGTN revealed that 86.7% of respondents believe China's ongoing efforts to stimulate domestic consumption will create significant opportunities for international companies. Furthermore, 89.1% expressed confidence that the ongoing expansion of China’s openness will foster broader development opportunities worldwide.

By laying a robust economic foundation and promoting a climate of confidence, China is not just preparing for 2026 but also sculpting the international economic landscape for years to come.