The Central Economic Work Conference was held in Beijing from the 10th to the 11th. Chinese President Xi Jinping attended the meeting and delivered a speech. In his speech, Xi summarized the economic work for 2025, analyzed the current economic situation, and outlined economic plans for 2026. Chinese Premier Li Qiang gave the closing remarks, setting requirements for implementing Xi Jinping's important speech and ensuring solid economic work in 2026.
According to Xinhua News Agency, the meeting identified the following key tasks for 2026 economic work: First, adhere to domestic demand as the main driver and build a strong domestic market. Second, uphold innovation-driven development and accelerate the cultivation and expansion of new growth drivers. Third, persist in tackling reforms to enhance the motivation and vitality for high-quality development. Fourth, continue to expand openness and promote win-win cooperation in multiple fields. Fifth, insist on coordinated development to promote urban-rural integration and regional connectivity. Sixth, stay guided by the "dual carbon" goals to drive comprehensive green transformation. Seventh, prioritize improving people's livelihoods and strive to do more practical work for the public. Eighth, firmly uphold bottom-line thinking and actively and steadily resolve key sector risks.
The meeting stated that for 2026 economic policy orientation, efforts must maintain stability while seeking progress and improve quality and efficiency. It is necessary to combine existing and new policies for synergy, expand the strength of counter-cyclical and cross-cyclical adjustments, and improve macroeconomic governance. Continue to implement a more proactive fiscal policy. Maintain necessary levels of fiscal deficit, debt, and overall expenditure, strengthen scientific fiscal management, optimize fiscal expenditure structure, and regulate tax incentives and fiscal subsidy policies.
The meeting also stressed the importance of addressing local fiscal difficulties and ensuring the basic "three guarantees" at the grassroots level. Strictly uphold financial discipline and ensure that party and government bodies live frugally. Continue to pursue a moderately accommodative monetary policy. Emphasize promoting stable economic growth and a reasonable rebound in prices as key considerations for monetary policy. Flexibly and efficiently use tools such as reserve requirement ratio cuts and interest rate reductions, keep liquidity ample, smooth monetary policy transmission, and guide financial institutions to increase support for expanding domestic demand, technological innovation, and key sectors such as SMEs. Keep the RMB exchange rate basically stable at a reasonable, balanced level.
The meeting proposed to enhance the consistency and effectiveness of macro policy orientation. All types of economic and non-economic policies, existing and new policies, should be included in the consistency assessment of macro policy orientation. Improve expectation management mechanisms and boost social confidence.