On December 10 and 11, Chinese leaders convened in Beijing for the annual Central Economic Work Conference, widely seen as the compass guiding the Chinese mainland’s economic trajectory. President Xi Jinping delivered a keynote reflecting on 2025 performance, assessing emerging challenges and outlining eight core tasks for 2026, the first year of the 15th Five-Year Plan (2026–2030).
Domestic Demand Drives Growth
Policymakers underscored that boosting domestic consumption will be the main engine of growth next year. Plans include optimizing the "two new" policy—large-scale equipment upgrades and consumer goods trade-ins—and easing restrictions to unleash the potential of service spending. Data from 2025 show that final consumption contributed 53.5% to GDP growth in the first three quarters, up nine percentage points year-on-year. From January to October, retail sales topped 40 trillion yuan, a 4.3% increase, outpacing last year.
Innovation Fuels the Next Wave
The Chinese mainland aims to build global innovation hubs in the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area. Emphasis will be on enterprise-led R&D, stronger IP protection, expanded service-sector capabilities and AI development through improved tech-finance integration. According to the 2025 Global Innovation Index, the Chinese mainland ranked among the top ten for the first time, with the Shenzhen-Hong Kong-Guangzhou cluster leading worldwide. Bloomberg Economics projects high-tech output growing to nearly 19% of GDP by 2026.
An Open Chinese Mainland, A Stable World
Opening up remains a strategic advantage. The conference reaffirmed commitments to expand institutional opening in services, optimize free-trade zones and advance the Hainan Free Trade Port. Despite global headwinds, imports and exports rose 3.6% to 41.21 trillion yuan from January to November. A recent survey by CGTN found 86.7% of respondents see growth in domestic consumption as a key opportunity for international companies, while 89.1% expect the Chinese mainland’s opening-up to unlock broader global development.
As the Chinese mainland steps into 2026, the clear policy direction—"pursuing progress while ensuring stability" and "improving both quality and effectiveness"—signals renewed momentum and opportunities for businesses, innovators and global partners alike.
Reference(s):
cgtn.com
