Xinhua Headlines: China's 2026 economic agenda to kick off 15th Five-Year Plan with high-quality growth

* Chinese leaders set priorities for economic work in 2026 at a key meeting that concluded Thursday, signaling the country's firm determination to navigate uncertainties with high-quality development.

* The meeting said domestic demand will remain a key focus in building a robust domestic market, a move analysts describe as a strong buffer by the world's second-largest economy against rising external uncertainties.

* Policymakers also emphasized the need to "better coordinate domestic economic work with struggles in the international economic and trade arena" in the meeting, indicating that the world's second-largest economy is bracing for sustained external pressures.

BEIJING, Dec. 12 (Xinhua) -- Chinese leaders set priorities for economic work in 2026 at a key meeting that concluded Thursday, signaling the country's firm determination to navigate uncertainties with high-quality development.

The Central Economic Work Conference delivered a sober assessment of the economy, confronting challenges head-on with a clear, problem-oriented agenda, as observers scrutinize its messages to understand the economic priorities of the world's second-largest economy in 2026 and beyond, with 2026 marking the beginning of China's 15th Five-Year Plan period (2026-2030).

During the 14th Five-Year Plan period (2021-2025), China contributed around 30 percent of global growth, reinforcing its position as a stabilizing force in the world economy.

The meeting addressed concerns ranging from domestic consumption to the balance between development and security. Analysts believe this approach will balance short-term needs with long-term goals, while stimulating internal momentum alongside expanding external opportunities.

PRIORITIZING DOMESTIC DEMAND

In terms of tasks of next year's economic work, the meeting said domestic demand will remain a key focus in building a robust domestic market, a move analysts describe as a strong buffer by the world's second-largest economy against rising external uncertainties.

Chen Lifen, a researcher at the Development Research Center of the State Council, said prioritizing the domestic market is an intrinsic requirement for constructing a new development paradigm.

The policy pivot comes as consumption cements its role as the primary economic driver. Final consumption expenditure contributed 53.5 percent to economic growth in the first three quarters of 2025, up 9 percentage points from the full-year figure of the previous year. With the economy showing resilience, China is widely expected to achieve its growth target of around 5 percent for the year.

Global financial institutions have responded positively to the trajectory. The World Bank, International Monetary Fund (IMF), and Asian Development Bank recently raised their 2025 growth forecasts for China by 0.4, 0.2, and 0.1 percentage points, respectively.

"The authorities are already taking steps to raise domestic consumption," said Kristalina Georgieva, managing director of the IMF. "They have adopted an expansionary fiscal stance, eased monetary policy, and implemented some targeted measures to reduce excess saving and address 'involution.'"

China's economic resilience has bolstered global market confidence, extending optimism from immediate growth upgrades to the country's medium-term potential. Foreign institutions are now looking toward 2026 with expectations that continued policy support will underpin a stable trajectory.

Ding Shuang, chief economist of Greater China and North Asia with Standard Chartered, said at an outlook briefing that the focus of economic work for 2026 has shifted from a short-term "risk response" mode to a long-term "economic transformation" mode, noting that the agenda is now placing greater emphasis on domestic demand and innovation.

Xiong Yi, chief China economist at Deutsche Bank, expects China's economy to run on a defined track in 2026. He anticipates continued fiscal expansion and precise monetary policy, projecting that investment contributions will recover, exports will remain strong and consumption will continue to serve as the main engine of growth.

NAVIGATING EXTERNAL HEADWINDS

In mapping out the economic blueprint for next year, policymakers emphasized the need to "better coordinate domestic economic work with struggles in the international economic and trade arena." Analysts say the emphasis indicates that the world's second-largest economy is bracing for sustained external pressures.

The phrase was first highlighted by China's top leadership in April amid escalating global trade uncertainties, noted Su Li, a researcher at the National Academy of Development and Strategy at Renmin University of China.

Su said the reiteration of the phrase in the tone-setting economic work conference signals that China is framing the struggles in the international economic and trade arena as a comprehensive effort encompassing technological self-reliance, supply chain security, and a greater voice in setting international trade rules.

As a major trading partner to more than 150 countries and regions, China aims to counter unilateralism and protectionism by expanding its open economy and diversifying export markets, leveraging its economic stability to garner broader international support.

Over the past five years, China has ranked first and second globally in trade in goods and services, respectively, attracting over 700 billion U.S. dollars in foreign investment while seeing outbound investment grow at an average annual rate of more than 5 percent.

The country has continuously shortened its negative list for foreign investment and expanded unilateral visa-free policies. As voluntary and unilateral opening-up expands in an orderly manner, the country's 22 pilot Free Trade Zones have actively aligned with high-standard international economic and trade rules. With the Hainan Free Trade Port set to commence island-wide independent customs operations soon, China's high-standard opening-up is poised to reach a new level.

The meeting called for efforts to support service exports, actively develop digital and green trade, reform and improve the systems for promoting foreign investment, and improve overseas integrated service systems.

Deepening the reform of systems for promoting foreign investment is a crucial focal point for steadily expanding institutional opening-up, said Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

Wang added that deepening these reforms will help leverage China's advantage of an ultra-large market to attract global resources and factors, enhance the synergy between domestic and international markets and resources, and continuously boost the innovation and competitiveness of the economy.  ■