Expanding domestic demand will be the top priority of China's economic policy in 2026, an official from the Office of the Central Committee for Financial and Economic Affairs said in a recent interview with major domestic media outlets, while explaining the spirit of the Central Economic Work Conference held in Beijing last week.
The official noted that China's domestic demand has remained stable this year, contributing 71 percent to economic growth in the first three quarters. Policies aimed at boosting consumption have been effective, while efforts to expand effective investment have been steadily advanced. However, the growth rates of consumption and investment have slowed down in recent months, which requires continued efforts to boost domestic demand.
The official said that China is transitioning from a consumption model dominated by goods to one that equally emphasizes goods and services. While growth in certain goods consumption sectors has slowed, demands for services, particularly in culture and tourism, elderly care, and childcare, remains robust.
Next year, the official said, greater efforts will be made to better align supply and demand. Measures will include increasing the incomes of urban and rural residents, stabilizing employment, and further raising the basic pensions for both urban and rural residents.
Efforts will also focus on expanding the supply of high-quality goods and services, developing new business formats, models, and scenarios for consumption, and cultivating new trillion-yuan growth areas such as domestic helper services and health tourism.
The official also emphasized the importance of further unleashing consumption potential by removing unreasonable restrictions and encouraging eligible regions to introduce spring and autumn breaks for primary and secondary schools, while ensuring the implementation of staggered paid leave for employees.
Although investment has recently declined, the official noted that China still faces significant gaps and weaknesses in technological innovation, industrial upgrading, infrastructure, and improving people's livelihoods.
Stressing the need to combine investment in physical assets with investment in people, the official stated that consumption and investment efforts will be better coordinated next year.
The government will accelerate construction of consumption-related infrastructure, including parking lots, charging stations, and tourism roads, and increase the share of investment in public services such as elderly care, childcare, and healthcare, the official added.
By leveraging funding sources such as central budget investment, ultra-long special treasury bonds, and local government special-purpose bonds, the government intends to strengthen its role in guiding investment.
The official also stressed the need to stimulate the vitality of private investment by supporting private enterprises in participating in major projects in sectors like railways and nuclear power, and by guiding private capital toward new sectors in high-tech industries and services, alongside more concrete measures to boost investor confidence.
The official expressed confidence that through the robust link between investment and consumption, along with government-market collaboration, China will be well-positioned to promote sustainable growth in domestic demand next year.
Expanding domestic demand top priority in 2026: Chinese economic official
