China signals stronger stimulus push as CPC reviews economy

BEIJING: The Political Bureau of the Communist Party of China (CPC) Central Committee on Tuesday held a key meeting to assess the country’s economic performance and outline priorities, with Xi Jinping presiding over the session.

The meeting noted that China’s economy has made a strong start to the year, with major indicators surpassing expectations and demonstrating resilience. However, it cautioned that challenges persist and the foundation for sustained recovery still requires consolidation.

Calling for intensified efforts, the leadership stressed the need for concrete measures to bolster economic momentum, including advancing self-reliance in science and technology and building secure, resilient industrial and supply chains.

The CPC signalled a more proactive fiscal stance alongside a targeted and flexible monetary policy aimed at expanding domestic demand and optimizing supply. Strengthening internal economic circulation while improving global linkages was highlighted as essential to ensuring a solid start to the 15th Five-Year Plan (2026–2030).

The meeting also underscored the importance of optimizing fiscal spending, making monetary tools more forward-looking, and unlocking consumption potential by expanding the availability of high-quality goods and services.

China plans to accelerate infrastructure development, including modern water systems, advanced power grids, computing infrastructure, next-generation communication networks, urban underground facilities, and logistics systems, while pushing forward major projects ready for implementation.

Emphasis was placed on building a modern industrial system, maintaining a strong manufacturing base, and advancing the creation of a unified national market. Authorities also pledged to curb inefficient “involution-style” competition.

The leadership reaffirmed its commitment to the “AI plus” initiative, aiming to foster an intelligent economy while strengthening governance around artificial intelligence.

Addressing external risks, the meeting called for measures to enhance energy and resource security and to counter global uncertainties through high-quality development. It also stressed the importance of managing risks in key sectors, including stabilizing the property market, resolving local government debt, and boosting confidence in capital markets.

Reiterating its employment-first approach, the CPC pledged to improve public services in education, healthcare, and childcare as part of broader efforts to ensure stable and inclusive economic growth.