China flags more proactive fiscal policy in 2026 to boost domestic demand

China is set to adopt a more proactive fiscal policy in 2026, focusing on boosting domestic demand, accelerating technological innovation, and enhancing the social safety net. The fiscal approach will center on encouraging consumption, expanding investment, and fostering new growth sources. Increased investment in advanced manufacturing, digital industries, and emerging technologies will be prioritized to bolster consumer confidence. Furthermore, strengthening the social security system will play a crucial role in easing household savings and promoting consumer spending. Recent statements highlight that fiscal support will remain a cornerstone of China's macroeconomic strategy, aimed at stimulating domestic demand while maintaining robust economic growth.