Beijing is signalling a shift in its economic playbook for 2026 by flagging a more proactive fiscal policy aimed at boosting domestic demand and supporting broader growth goals. China’s finance ministry and senior leadership have indicated that next year’s approach will lean more heavily on government spending, expanded use of bond financing and targeted measures to stimulate consumption, as policymakers look to strengthen internal economic momentum. Fiscal authorities are preparing to increase the scale of public expenditure to ensure sufficient support for priority areas. Officials have also highlighted plans to improve the structure and efficiency of spending, with a focus on better transfer payments to local governments. Strengthening local finances is seen as key to maintaining public services and investment projects while helping stabilise employment and household incomes. The policy direction builds on signals sent earlier at the Central Economic Work Conference, where leaders m...