China's Xi Promises More Proactive Macro Policies in 2026
GlendonXi hails 'extraordinary' year; Says China is forecast to reach 5% growth target; Pledges could allay worries over second-half slowdown.
China is on track to meet its growth target of around 5% this year and will roll out more proactive policies in 2026, President Xi Jinping said on Wednesday, amplifying promises for more stimulus to power economic growth.
China's GDP was on track to reach around 140 trillion yuan ($20 trillion) after an "extraordinary" year, Xi told a New Year's tea party of top Chinese Communist Party officials, state broadcaster CCTV reported.
Xi did not mention specific policies but his message reinforced recent government pledges of fiscal measures to boost people's incomes and support consumption and investment.
WORRIES OVER SECOND-HALF SLOWDOWN
Forceful fiscal steps could allay worries over the slowdown seen over the second half of the year in the world's second-largest economy.
At an agenda-setting economic meeting earlier this month, Chinese leaders promised to maintain a "proactive" fiscal policy next year including "special actions to boost consumption".
Chinese leaders have also acknowledged a "prominent" imbalance between strong domestic supply and demand weakness.
"Our country's economy is expected to move forward under pressure ... showing strong resilience and vitality," Xi told Party officials on Wednesday.
The country will promote effective qualitative improvement and reasonable quantitative growth in the economy, while maintaining social harmony and stability, Xi said.
The leader is due to address the nation in a televised message on Wednesday evening.
MARKETS END YEAR ON HIGH NOTE
China's yuan breached the psychologically important 7-per-dollar level for the first time in 2-1/2 years this week, and is on track for its biggest annual rise since 2020.
China set an "around 5%" growth target for 2025, even as momentum faltered towards year-end, weighed down by soft household consumption, persistent deflation and a prolonged property sector crisis.
The central government has allocated 62.5 billion yuan from special treasury bond proceeds to local governments to fund a consumer goods trade-in scheme next year, which aims to boost the economy by offering consumers subsidies to replace domestic appliances.
China's state planner has also released early investment plans for 2026, including two major construction projects, involving about 295 billion yuan in central budget funding.
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