China's top economic planner vows more efforts to expand domestic demand

BEIJING -- China's top economic planner said Tuesday it will work with relevant departments to expand domestic demand with greater force and more effective measures in an effort to consolidate the foundation and momentum for steady economic recovery.

The National Development and Reform Commission (NDRC) revealed this at a press conference on Tuesday following the release of the latest economic data on Monday, which showed the world's second-largest economy pressed ahead against pressures with a 4.6-percent economic growth in the first three quarters of 2026.

Commenting on the economic performance, NDRC official Zuo Gang said the economy, in the face of intensifying global geopolitical conflicts and frequent natural disasters, has demonstrated strong resilience and vitality with new growth drivers and improved structure.

Due to challenges such as the deepening impact of external shocks, an imbalance of strong supply and weak demand at home, and pronounced sectoral divergence, further measures will be taken to rev up the economy, according to the official.

"The NDRC will work with relevant departments to promptly introduce and implement incremental policies and promote synergy between existing and incremental policies with a view to achieving a good start for the 15th Five-Year Plan period (2026-2030)," Zuo said.

China has targeted 2026 growth at 4.5 to 5 percent and will strive for better in practice.

BOOSTING CONSUMPTION

More efforts will be made to vigorously boost consumption, Zuo said.

Authorities will raise the share of public service spending in fiscal expenditure, strengthen inclusive policies that reach consumers directly, and promote the expansion and upgrading of goods consumption, including new energy vehicles and smart products, Zuo said.

The push comes as consumption shows signs of steady improvement. Total retail sales of goods and services rose 2.6 percent year-on-year in the first three quarters of 2026, with retail sales of services growing faster than goods and new forms of consumption continuing to emerge, official data showed. Final consumption expenditure contributed more to overall economic growth in the January-September period.

Chinese authorities have recently introduced a raft of measures aimed at boosting domestic demand, including offering interest subsidies for the housing loans of eligible homebuyers to help reduce home-buying costs and better unlock housing demand.

Through ultra-long special treasury bond issuance, 250 billion yuan ($37.2 billion) has been raised to support consumer goods trade-in programs, and 200 billion yuan to support large-scale equipment upgrades this year. Furthermore, 50 billion yuan was earmarked for the establishment of a special fiscal-financial coordination fund to boost domestic demand.

In addition to measures already announced, including lowering interest rate for pledged supplementary lending and increasing relending quotas to support sci-tech innovation and technological upgrades, "we will introduce new incremental policies in a timely manner as needed to ensure that the economy operates within an appropriate range," Zuo said.

PROMOTING INVESTMENT

Zuo said China will invest in both physical assets and human capital to expand effective investment.

Specifically, the NDRC will push for the implementation of the 109 major projects outlined in the 15th Five-Year Plan (2026-2030) and the "six networks" initiative, covering water, power, computing, communications, urban underground pipelines and logistics networks, Zuo said.

Ultra-long special treasury bond funds will be deployed more effectively, and the new policy-based financial instruments will be used at a faster pace, Zuo said, also vowing stronger support for social welfare, technology innovation, industrial upgrading and security resilience.

Zuo revealed plans to energize private investment by introducing private capital into major nuclear power, hydropower, and water conservancy projects. He also identified the optimization of computing power facility layouts and the renovation and upgrading of aging reservoirs as additional investment priorities.

China's investment is undergoing a profound shift in emphasis from traditional sectors to emerging ones, analysts said, noting that artificial intelligence and new infrastructure will serve as key engines for the next round of effective investment.

Official data showed the country's investment in innovation-driven sectors held up well in the first three quarters of 2026, even as overall fixed-asset investment continued to contract. Investment in intellectual property products rose 9.3 percent year-on-year in the January-September period, while investment in high-tech industries grew 4.9 percent.

Investment will increasingly serve the development of new quality productive forces and the building of a modern industrial system, with the ultimate results felt in expanded employment, rising incomes and improved living standards, said Liu Yuanchun, president of Shanghai University of Finance and Economics.