Chinese President Xi Jinping. File
| Photo Credit: Reuters
China will implement more proactive policies in 2026 aimed at supporting long-term growth, with its economy expected to meet Beijing’s growth target of about 5% this year, state media reported , as President Xi Jinping said on Wednesday (December 31, 2025).

The economy is expected to have grown to about 140 trillion yuan ($20 trillion) in 2025, Mr. Xi said in his address at a New Year’s tea party of top Chinese Communist Party officials, state broadcaster CCTV said.
“Our country’s economy is expected to move forward under pressure…showing strong resilience and vitality,” Mr. Xi said in his speech.
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The country will promote effective qualitative improvement and reasonable quantitative growth in the economy, Mr. Xi said, while maintaining social harmony and stability.
China’s economy is expected to meet its “around 5%” growth target for 2025, even as momentum faltered towards year-end, weighed down by soft household consumption, persistent deflation and a prolonged property sector crisis.

Mr. Xi’s message reinforces recent government pledges to roll out measures for boosting people’s incomes and supporting consumption and investment to drive growth.
The central government has allocated 62.5 billion yuan from special treasury bond proceeds to local governments to fund the consumer goods trade-in scheme next year, confirming that Beijing would continue to spur household demand through the programme.
China’s state planner has also released early investment plans for 2026, including two major construction projects, involving about 295 billion yuan in central budget funding, in its latest effort to boost investment and support economic growth.
Published – December 31, 2025 12:20 pm IST
