Key facts
- China will implement a proactive fiscal policy for high-quality development from 2026-2030.
- Finance Minister Lan Fo'an stated the policy will focus on counter-cyclical and cross-cyclical regulation.
- Support will increase for industry, science, technology, education, and social security.
- Fiscal policy will be coordinated with monetary, industrial, and regional policies.
- China will use fiscal subsidies to expand consumption and foster new consumption drivers.
- The country will establish long-term mechanisms for government debt management.
China plans to strengthen its proactive fiscal policy to foster high-quality development over the next five years, spanning the 15th Five-Year Plan period from 2026 to 2030, according to Finance Minister Lan Fo'an.
In an interview with Xinhua, Lan noted that the global environment is volatile, marked by increasing major-country rivalry, unilateralism, and protectionism, while the world economy lacks growth momentum. Domestically, he acknowledged that while China's economy has solid fundamentals, resilience, and potential, there are also notable shifts in industrial structure, business models, demographics, and wealth distribution, with some risks yet to be fully resolved.
These evolving conditions necessitate an effective response, seizing opportunities amid challenges, and enhancing fiscal policy's effectiveness. The finance authorities intend to strengthen counter-cyclical and cross-cyclical regulation, adjusting the deficit-to-GDP ratio and government borrowing scale as needed. Tools such as budgets, taxation, government bonds, and transfer payments will be employed to support economic and social development.