China said it will broaden the scope of fiscal spending in 2026, signalling sustained government support to stabilise growth as the country faces a more uncertain external environment.
Beijing will expand targeted investment in priority areas including advanced manufacturing, technological innovation and the development of human capital, the Ministry of Finance said in a statement on Sunday.
The announcement followed a year-end fiscal policy meeting, where officials reviewed economic conditions and set priorities for next year.
The ministry said fiscal policy would remain “appropriately forceful and effective,” with a greater focus on supporting strategic industries, strengthening domestic capabilities and improving long-term productivity.
The move comes as policymakers seek to offset slowing global demand, rising trade frictions and persistent weakness in private investment, while steering the economy toward higher-value growth.
China has increasingly relied on fiscal tools in recent years to support economic momentum, using tax cuts, infrastructure spending and targeted subsidies to stabilise employment and encourage industrial upgrading.
Analysts say the renewed emphasis on advanced manufacturing and innovation reflects Beijing’s effort to reduce dependence on foreign technology and move up the global value chain, while investment in education and skills is aimed at addressing structural labour shortages and improving productivity.
The ministry did not disclose the size of next year’s fiscal package, but said it would be calibrated to balance growth support with financial discipline and risk prevention.
Officials added that fiscal resources would be used more efficiently, with improved coordination between central and local governments and stricter oversight to ensure funds are directed toward productive uses.
China’s leaders have repeatedly stressed the need to shift from stimulus-driven expansion toward more sustainable, innovation-led growth, even as short-term policy support remains necessary to navigate external headwinds.
