Boosting consumption will be key in 2026

The call by Chinese policymakers to further boost consumption and raise incomes of urban and rural residents signals a stronger demand-side push in 2026 to target consumers' ability and willingness to spend, economists said.

The annual Central Economic Work Conference, which concluded on Dec 11, urged deeper implementation of pro-consumption measures and the rollout of an income growth plan for households. It also called for expanding the supply of high-quality goods and services and removing unreasonable restrictions on the consumption sector to unlock services spending.

Shu Wenqi, deputy director of the China City Development Academy, said the conference signaled a sharper demand-side tilt in macro policy, shifting the focus of growth from traditional investment to a dual push for consumption and incomes. The aim is to systematically raise the ability and willingness of households to spend, thereby strengthening the economy's endogenous momentum over the long term.