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China's Politburo Sets Pro-Growth Policy Tone Ahead of 'Two Sessions'

The guidance signals continuity in stimulus before March legislative meetings.

Overview

  • At a meeting chaired by Xi Jinping, leaders reaffirmed a more proactive fiscal stance and a moderately accommodative monetary policy, according to Xinhua.
  • Priorities include stabilising employment, enterprises and markets, expanding domestic demand, and advancing a unified national market.
  • The Politburo advanced a draft outline of the next five-year plan and a draft government work report for National People's Congress review in March.
  • Officials called for stronger coordination between reforms and macro policy, development of new growth drivers, and higher self-reliance in science and technology.
  • China reported 5.0% GDP growth in 2025, while observers expect a slightly lower 2026 target of about 4.5–5% to be set at the upcoming meetings.