China’s Economic Planning Meeting Charts Familiar Course

Key Takeaways

• The Central Economic Work Conference in Beijing set China’s economic agenda for 2026 amid a weak property sector, high local government debt, and low domestic demand.
• Policymakers signaled a continuation of proactive fiscal policy and potentially looser monetary policy, with key tasks including boosting domestic demand, driving innovation, and further opening to foreign investment.
• Industrial policy in pursuit of technological dominance, a crucial component of China’s policy planning, risks exacerbating international trade tensions.