China will strengthen government investment and fund allocation to support the real economy and tackle with supply-demand imbalances, a senior government official said on Tuesday.
The Central Economic Work Conference held in December 2025 pointed out that there is a contradiction between strong supply and weak demand in China.
Speaking at a press conference held by the State Council Information Office, Wang Changlin, deputy head of the National Development and Reform Commission, said the government will focus on the real economy and market development in tackling the issue.
"We must continue to focus our efforts on developing the real economy and accelerate the building of a modern industrial system. We will leverage the benchmark role of the national venture capital guidance fund, explore the establishment of a national-level mergers and acquisitions fund, strengthen the planning and guidance of government investment funds, promote innovation and entrepreneurship, and accelerate the cultivation and development of new quality productive forces," Wang said.
Wang also said the government's macroeconomic policies will continue to focus on strengthening the domestic economic cycle and on deepening the construction of a unified national market.
China to support real economy in tackling supply-demand imbalance
China will enhance its equipment upgrading and trade-in programs in 2026 to boost domestic demand, the National Development and Reform Commission (NDRC) announced on Tuesday.
Regarding promoting large-scale equipment upgrades and replacing old consumer goods with new ones, significant progress was reported in 2025. In the past year, ultra-long-term special government bond funds were arranged to support approximately 8,400 equipment-upgrading projects, stimulating total investments exceeding 1 trillion yuan (about 143.5 billion U.S. dollars). Over 360 million people applied for subsidies under the consumer goods trade-in scheme, leading to sales of related goods surpassing 2.6 trillion yuan.
Wang Shancheng, director of the Department of Resource Conservation and Environmental Protection at the NDRC, said at a press conference that the Implementation of these measures will continue to be optimized in 2026.
"We will further lower the investment threshold for application projects, increase support for small and medium-sized enterprises, expand policy coverage, implement the requirements for building a unified national market, and implement unified subsidy standards nationwide for the scrapping and replacement of vehicles, trade-in of six categories of home appliances, and four categories of digital and smart product purchases," said Wang.
The NDRC representative also highlighted that in 2026, efforts will focus on comprehensively expanding domestic demand. An implementation plan to expand domestic demand for the 2026-2030 period will be formulated. Furthermore, the NDRC will promote upgrades in key industries, explore establishing a national-level mergers and acquisitions fund, and cultivate and bolster emerging and future industries.
China to enhance equipment upgrades and trade-in programs in 2026
