China plans to maintain an appropriate level of budget deficit and government debt in 2026, while also addressing the financial difficulties faced by local authorities. This was stated in the materials of the annual Central Economic Work Conference, which took place in Beijing on December 10–11.

According to the state news agency Xinhua, the meeting of top leadership presented plans to implement a "moderately flexible monetary policy" and to strengthen anti-crisis and counter-cyclical measures to support the economy.

Chinese authorities announced their intention to flexibly use various monetary tools, including lowering banks’ reserve requirements and interest rates. It was also emphasized that a more proactive fiscal policy is needed, with an optimized structure of government spending.

The year 2025 was described at the economic meeting as "unusual," as both old problems persist and new challenges are emerging. This has become the basis for commitments to consolidate and stabilize the economy.

Among the key priorities, officials highlighted the development of a strong domestic market, further expansion of internal demand, and maintaining a stable yuan exchange rate.

Special attention was given to the real estate market. It was announced that China will implement tailored measures to stabilize the property sector in each city. Additionally, the authorities intend to work on reducing local government debt risks and to prevent the emergence of new hidden debts.

Other economic initiatives include launching employment stabilization programs targeting university graduates and migrant workers, lifting restrictions in the consumer sector, unlocking the potential of the services market, and effectively managing risks in key industries.

The leadership also pledged to support grain production, keep food prices at reasonable levels, and promote a positive attitude toward marriage and childbirth to stabilize the demographic situation.