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Xi Signals Proactive 2026 Policies as China Holds to About 5% Growth Goal

Beijing sets new funding to spur domestic demand during a late-year slowdown.

Overview

  • State media quoted Xi Jinping saying the economy is expected to reach about 140 trillion yuan in 2025.
  • The central government allocated 62.5 billion yuan from special treasury bond proceeds to fund a 2026 consumer goods trade-in program via local governments.
  • The state planner outlined early 2026 investment plans that include two major construction projects backed by about 295 billion yuan in central budget funding.
  • Policy messaging centers on raising household incomes and supporting consumption and investment to drive growth.
  • Official data show industrial profits fell 13.1% year over year in November after a 5.5% decline in October, reflecting weak consumption, deflation and property-sector stress.