China Unveils 2026 Growth Policy for Innovation and Trade

On Friday, senior Chinese officials detailed the country's policy mix for 2026, targeting a gross domestic product (GDP) growth of 4.5-5%. Zheng Shanji, head of the National Development and Reform Commission, emphasized the importance of resilient economic growth and innovation.

The government plans to implement a proactive macro policy package combining fiscal and monetary measures, with a record high fiscal expenditure and new government bond issuance. Total infrastructure investment is expected to exceed 7 trillion yuan (approximately 1 trillion USD).

The focus will be on expanding domestic demand, with 250 billion yuan earmarked for consumption goods and a 100 billion yuan package to support private investment. Pan Gongsheng, governor of the People's Bank of China, highlighted the need for flexible monetary policy to respond to external shocks.

The Ministry of Commerce, led by Wang Wentao, noted that China aims to stabilize its export share while promoting balanced trade growth. The country will also enhance access to its service market and invest nearly 1.3 trillion yuan in science and technology development.