Proactive fiscal policy in 2026 emphasized

China will continue exerting a "more proactive" fiscal policy and "moderately loose" monetary policy next year, as it strives to promote "effective qualitative improvement" and "reasonable quantitative growth" in its economy, according to a key Party leadership meeting on Monday.

The meeting was convened by the Political Bureau of the Communist Party of China Central Committee to analyze and study the country's economic work in 2026. Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting.

The decision-making body of the Party emphasized that the country would adhere to the overarching principle of "seeking progress while maintaining stability", and better coordinate domestic economic work and endeavors in the international economic and trade arena, as well as development and security, according to a statement released after the meeting.

While noting the importance of implementing more proactive and effective macroeconomic policies, the decision-making body highlighted the need to enhance the foresight, targeting and synergy of policies.

It called for continuous efforts to expand domestic demand and optimize supply, develop new quality productive forces tailored to local conditions, advance the construction of a unified national market in greater depth, and prevent and defuse risks in key areas, the statement said.

Efforts should be made to stabilize employment, enterprises, markets and expectations to maintain social harmony and stability, and ensure a good start for the 15th Five-Year Plan (2026-30) period, the statement added.

It was noted at the meeting that counter-cyclical and cross-cyclical adjustments should be strengthened to effectively enhance the efficiency of macroeconomic governance.

The meeting called for building a robust domestic market by expanding domestic demand, stepping up fostering new growth drivers by promoting innovation-driven development, enhancing the momentum and vitality of high-quality growth by deepening reform, and bolstering win-win cooperation across various fields by adhering to opening-up.

The meeting also underlined the need to promote urban-rural integration and coordinated development across the regions, drive green transformation on all fronts, prioritize people's livelihoods, and bear in mind the worst-case scenarios to resolve risks in key areas in a proactive and prudent manner.

During the meeting, a set of regulations on the CPC's leadership over law-based governance in all respects was reviewed.

Historically, the Political Bureau's December meeting has been closely followed by the annual Central Economic Work Conference, which typically sets the tone for economic work in the year ahead.

China's gross domestic product grew 5.2 percent year-on-year in the first three quarters of 2025 despite rising external headwinds, and attention is now shifting to next year, the start of China's 15th Five-Year Plan period.

Ahead of Monday's Political Bureau meeting, the CPC Central Committee held a symposium with non-CPC personages on Wednesday in Beijing to solicit their opinions and suggestions on this year's economic situation and economic work for 2026.

At the symposium, representatives of non-CPC personages gave their suggestions on a number of issues, including optimizing industrial layout, expanding domestic demand and high-standard opening-up, enhancing people's well-being, and boosting high-quality employment.

Xi presided over the symposium and delivered an important speech. He emphasized that the supporting conditions and fundamental trend for long-term economic growth in China remain unchanged.

He called for remaining confident, leveraging China's strengths and tackling challenges, and working to consolidate and expand the positive momentum in the economic upturn in order to make a good start in implementing the 15th Five-Year Plan.

He said that the CPC Central Committee had implemented more proactive and effective macro policies this year, and the main goals for economic and social development are expected to be accomplished.

Xi noted that China has effectively navigated various shocks and challenges over the past five years. As the 14th Five-Year Plan (2021-25) is set to approach a successful conclusion, the country's strengths in the economy, science and technology, and comprehensive national strengths have been significantly enhanced, he said.

Noting that non-CPC personages had carried out in-depth research on key issues arising in economic and social development and provided important references for the CPC Central Committee's scientific decision-making, Xi expressed thanks to them on behalf of the CPC Central Committee.

Xi called on them to actively contribute their wisdom and efforts to the formulation and implementation of the 15th Five-Year Plan, conduct in-depth research on topics such as building a modern industrial system, developing new quality productive forces tailored to local conditions, and establishing a strong domestic market, and put forward their opinions and suggestions.

caodesheng@chinadaily.com.cn