China Economy Set for Proactive Growth Push in 2026, Says Xi Jinping

China economy plans took center stage on December 31, 2025. President Xi Jinping said China will use stronger policies in 2026 to support long-term growth. He spoke in Beijing at a New Year gathering of senior Communist Party leaders. State media said China is on track to meet its growth goal of about 5% for 2025.

Officials said the economy reached about 140 trillion yuan this year. This equals about $20 trillion. The plan signals a steady push as the country works through weak demand and slow recovery.

China Economy Measures Aim to Lift Growth

President Xi said the economy still faces pressure. But he said it also shows “strong resilience,” according to Reuters. He said the government will seek both better quality and steady size in economic growth.

China faced slow consumer spending this year. Prices stayed low in many sectors. The property market crisis also made recovery harder. But officials expect the 5% target to be met.

The government plans to support incomes and boost spending. Beijing will send 62.5 billion yuan to local governments. This money will support a major trade‑in plan for consumer goods in 2026. The goal is to push households to replace old items and buy new ones.

China’s state planner also announced large investment plans for next year. Two major construction projects will get about 295 billion yuan in central funding. These projects aim to lift investment and strengthen local economies.

How China’s 2026 Strategy May Affect Global Markets

Stronger support for the China economy may help global trade. China is still one of the world’s biggest buyers of goods and raw materials. Growth in China often lifts demand in Asia, Europe, and Africa.

But the long-term outlook depends on whether consumer confidence returns. Many families remain cautious. Property values remain low. These issues may slow momentum even as the government invests more.

Still, analysts say steady 5% growth would be a strong sign of stability. It may encourage foreign companies to keep investing. It may also support regional markets that rely on China’s demand.

China economy policy plans for 2026 show a clear push for stability. The government wants steady demand and stronger confidence. The next year will test how well these new steps work.

FYI (keeping you in the loop)-

Q1: What is China’s economic growth target?

China set a growth target of about 5% for 2025. Officials said the country is on track to reach it. The same growth pace is expected to guide 2026 plans.

Q2: How big is China’s economy now?

President Xi said the economy reached about 140 trillion yuan in 2025. This is around $20 trillion. It keeps China as the world’s second-largest economy.

Q3: What new spending is planned for 2026?

The state planner released early plans for major construction work. Two big projects will get about 295 billion yuan. More plans may follow next year.

Q4: Why is consumer spending weak?

Households face low confidence and soft wage growth. The property crisis has also reduced family wealth. These factors limit spending.

Q5: What is the consumer goods trade-in scheme?

It is a program that pays people to replace old items with new ones. The government set aside 62.5 billion yuan for local support. It aims to boost demand in 2026.