China to Prioritize Domestic Demand Expansion in 2026

Beijing intends to make expanding domestic demand its primary economic objective in 2026. According to an official from the Office of the Central Committee for Financial and Economic Affairs, upcoming policies will aim to stimulate consumption by addressing both supply-side and demand-side factors, while also adapting to evolving consumption patterns within the country.

In an interview with Xinhua and other media outlets, the official discussed the guiding principles established at the Central Economic Work Conference held last week in Beijing. The official stated that alongside boosting consumption, efforts will focus on stabilizing and reversing the decline in investment. The aim is to improve living standards for the population and bolster long-term economic growth.

The official expressed confidence in achieving sustained growth in domestic demand next year, citing coordinated investment and consumption strategies, as well as synergy between government initiatives and market forces. He projected that China's major economic indicators for 2025 would meet expectations, with the economy growing by approximately 5 percent to reach around 140 trillion yuan (approximately $19.83 trillion). This growth rate, he added, would maintain China's position among the world's fastest-growing major economies.

Looking ahead, the official acknowledged existing challenges but emphasized the continued positive outlook for the Chinese economy. Regarding the property market, he noted significant potential for high-quality growth in the sector next year, driven by strong demand from first-time buyers and those seeking to upgrade their homes. Plans are in place to stabilize the property market by addressing both supply and demand factors, actively promoting the transformation and development of real estate companies, and accelerating the establishment of a new model for the sector's development.