With the 2026 two sessions kicking off in early March, global attention is focused on China's macroeconomic policies and growth prospects. The Central Economic Work Conference in December set the tone that the country will implement "more proactive and impactful macroeconomic policies" and "formulate more far-sighted, more targeted and better-coordinated policies."

And, the national fiscal work conference held at the end of 2025 also outlined major directions in implementing a more proactive fiscal policy, including fiscal expenditure expansion, optimizing the mix of government debt instruments, improving the efficiency of transfer payments, refining the expenditure structure, and enhancing coordination between fiscal and monetary policies.

Fiscal policy is expected to remain more proactive in 2