Developing | China’s Politburo says ‘more proactive’ fiscal policy to come in 2026

China has pledged to continue to exert a “more proactive” fiscal policy and “moderately loose” monetary policy next year as it seeks to promote “effective qualitative improvement and reasonable quantitative growth” in its economy.

After a meeting of the 24-member Politburo on Monday, the major decision-making body of the ruling Communist Party said the country would “seek progress while maintaining stability and pursue higher quality and greater efficiency in next year’s economic work.”

“[We need] to better coordinate domestic economic work and international economic and trade struggles, as well as development and security,” according to a readout released by state news agency Xinhua.

The readout also said the country would “implement more proactive and effective macro policies, and strengthen the forward-looking, targeted and coordinated nature of policies” in 2026.

Historically, the Politburo’s December meeting has been closely followed by the annual central economic work conference, which typically sets the tone for policy in the year ahead.

With the world’s second-largest economy largely staying on course despite rising external headwinds in 2025, attention is now shifting to next year, the first covered by China’s 15th five-year plan.