China Plans Proactive Fiscal Policy for 2026 Growth

Beijing, Dec. 28 -- China's Ministry of Finance announced plans for a more proactive fiscal policy in 2026, signaling sustained government spending to bolster domestic demand and drive economic growth amid ongoing challenges.

The statement, released after a two-day national fiscal work conference, outlined priorities including expanded investment in advanced manufacturing, technological innovation, and human capital development. Officials emphasized boosting consumption, supporting new productive forces in digital and emerging industries, and strengthening the social safety net through improved healthcare and education access. The ministry also pledged to promote urban-rural integration and advance greener economic transformation.

Finance Minister Lan Foan addressed the conference, stating that fiscal policy should play an active role in expanding domestic demand and smoothing economic circulation. "Our country's domestic market holds huge potential," Lan said, according to state news agency Xinhua. The approach builds on a similar proactive stance adopted in 2025, with continued use of government bond issuance and efficient transfer payments to maintain spending momentum.