China’s top leaders made strengthening domestic demand their top economic priority for 2026 during the Politburo’s December meeting, an announcement which follows a fall in economic momentum over the past few months.
This is yet again acknowledgement by the country’s highest organizational body that the main problem with the economy is the reluctance of people to spend money. Exports can no longer be relied on as the driving force, and China is moving away from being the world’s factory. The property market, the core of China’s domestic economy, is also not in good shape, and shows no signs of recovering.
Beijing has been talking for several years about the need to boost domestic consumption, but saying it and making it happen are two different things. As 2026 rolls in, we can expect more details on what Beijing plans to do to realize this.