Key takeaways from CPC leadership's meeting on economic work

The Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting on Wednesday to analyze the current economic situation and outlined key priorities for economic work in the second half of the year. The meeting stressed the need to maintain strategic focus amid rising challenges and to consolidate the momentum of economic recovery.

Here are the key takeaways from the meeting:

The meeting noted that China's economy remains on a recovery trajectory but continues to face "a number of risks and challenges." It called for enhanced risk awareness, a firm grasp of development opportunities, and efforts to strengthen the positive trend in economic performance.

The meeting also marked the beginning of preparations for the 15th Five-Year Plan (2026–2030). The CPC leadership called for broad participation in formulating the new plan, which is expected to set strategic goals for the country's next phase of development and modernization.

The meeting called for sustained and appropriately intensified macroeconomic policy support to reinforce the ongoing recovery. Fiscal policy will be made more proactive and better targeted, with an emphasis on accelerating the issuance and efficient use of government bonds, while ensuring basic funding needs at the local level are met.

A moderately loose monetary policy will continue to be implemented to ensure ample liquidity and help lower overall financing costs. Structural policy tools will be more actively deployed to support innovation, boost consumption, stabilize foreign trade, and assist small and micro-sized enterprises. Major economic provinces are encouraged to take the lead in driving growth. Greater consistency and coordination across macroeconomic policies will also be prioritized.

Reviving domestic demand and improving people's well-being remain priorities for the remainder of the year. The meeting emphasized the importance of unleashing the potential of domestic demand and increasing consumer spending to improve people's lives.

The leadership urged efforts to push forward targeted initiatives to boost consumption, not only by expanding spending on goods but also by cultivating new growth areas in services.

The CPC leadership also stressed the need to strengthen employment support, particularly for college graduates, veterans and migrant workers, to improve the tiered social assistance system. Rural development, food security and energy supply will remain key pillars of the country's livelihood strategy, especially during peak demand periods, according to the meeting.

The leadership reiterated its focus on promoting technological innovation to drive development of new quality productive forces and speed cultivation of emerging pillar industries that are globally competitive. China also aims to promote the integration of technological and industrial innovation and strengthen market-based competition by building a unified national market and optimizing the regulatory environment.

"Disorderly competition among enterprises must be governed according to laws and regulations," the meeting said. "Capacity management in key industries should be advanced."

The meeting underscored the need to expand high-standard opening-up and maintain the stability of foreign trade and investment.

Targeted support will be provided to export-oriented businesses facing difficulties, including enhanced access to financing and efforts to better integrate domestic and international trade, according to the meeting. The CPC leadership also pledged to refine export tax rebate policies and accelerate the development of high-level open platforms such as pilot free trade zones.

Containing financial and local government debt risks remains a key priority. The meeting stressed the importance of addressing existing debt in a prudent and orderly manner, avoiding new hidden debt and restructuring local government financing platforms.

Meanwhile, measures will be taken to enhance the appeal and inclusiveness of domestic capital markets, reinforcing the momentum of their recent recovery.