Economy February 27, 2026

China’s Politburo Urges Stronger, More Coordinated Economic Policy Measures

Top decision-making body calls for proactive fiscal and moderately accommodative monetary settings while stressing reforms and tech self-reliance

By Maya Rios
China’s Politburo Urges Stronger, More Coordinated Economic Policy Measures

China’s Politburo said on Feb 27 that the country needs more proactive and effective economic policies and improved coordination across measures. It advocated continuing a proactive fiscal stance and a moderately accommodative monetary policy, prioritising stability in employment, businesses and markets, and boosting the domestic market. Official data show the $19 trillion economy grew 5.0% in 2025, meeting the government’s target, while the Politburo reviewed drafts of the next five-year economic plan and the government work report for the national legislature’s March session.

Key Points

  • Politburo called for more proactive fiscal policy and a moderately accommodative monetary policy - impacts fiscal, banking and fixed-income markets.
  • Focus on stabilising employment, enterprises and markets and on building a stronger domestic market - relevant to consumer goods, services and domestic-facing industries.
  • Official data show the $19 trillion economy grew 5.0% in 2025, meeting the government’s target while offsetting weak domestic consumption with increased shipments abroad - relevant to exporters and manufacturing sectors.

BEIJING, Feb 27 - China’s highest-level policymaking body signalled the need for stronger, better-coordinated economic policies, saying authorities should pursue more proactive and effective measures to support growth and stability.

The Politburo asked for continuation of a more proactive fiscal policy alongside a moderately accommodative monetary stance, according to a summary of its meeting released by state channels. Discussions also covered actions to stabilise employment, support enterprises, steady markets and cultivate a robust domestic market.

Official figures show the country’s $19 trillion economy expanded by 5.0% in 2025, meeting the government’s stated growth objective. The statement noted that this performance came even as external political pressure - including efforts by a second Trump White House to slow China’s expansion - prompted Beijing to step up shipments elsewhere to compensate for subdued domestic consumption.

However, the Politburo acknowledged limits to that export-led adjustment. Economists cited in the meeting summary warned that relying on redirected shipments to offset soft consumer demand will become increasingly difficult to sustain over time.

The leadership said it will press ahead with deeper reforms in key parts of the economy while also seeking to broaden new drivers of growth. The Politburo emphasised raising self-reliance in science and technology to high levels as a strategic priority.

The published summary did not identify the specific sectors where reforms would be carried out or where the new growth drivers will be targeted, leaving those details unclear for now. In addition to policy direction, the Politburo reviewed a draft outline of the country’s forthcoming economic and social development five-year plan and examined a draft government work report that is slated for submission to the national legislature when it convenes for its annual session in March.

With the meeting framing both immediate policy settings and broader planning documents, officials appear to be balancing short-term stabilisation aims with planning for medium-term structural change. Yet the lack of sector-level detail and the warning about the limits of export substitution underscore ongoing uncertainties for businesses and markets as Beijing refines its approach.

Risks

  • Reliance on stepped-up shipments to offset weak domestic consumption may be increasingly difficult to sustain - risk for export-oriented manufacturing and trade-dependent industries.
  • The Politburo summary did not specify which sectors will see reforms or targeted new growth drivers, creating uncertainty for investors and firms in sectors that may expect policy support - risk for capital allocation across technology, manufacturing and services.
  • Details of the draft five-year plan and government work report remain to be finalised and reviewed at the March legislative session, leaving short-term policy clarity limited - risk for market stability and planning horizons for corporates and lenders.

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