China further outlines five-year plan, says to implement more proactive macro policies
2026-03-05 04:25:00
- Will enhance the coordination of fiscal and monetary policy
- To optimise the structure of fiscal expenditure
- Will keep liquidity ample, improve sustainability of government finances
- To keep exchange rate basically stable, enhance flexibility of the yuan
- Will release the full potential of services consumption
- Will boost effective investment, balance attraction of foreign investment
- To greatly boost self-reliance in science and technology
- Will boost high quality development of real estate
- To promote healthy and stable housing market development
- Will promote high-quality and adequate employment
- To enhance advantages in rare earths, metals, and also use of strategic minerals
- Will encourage internet platforms, AI firms to expand overseas applications
- To reasonably adjust import tariffs, expand imports of agricultural products
- To improve supply safeguards for grain and important agricultural products
All of this builds on the earlier announcement here. There is a lot more to it but these are arguably the more relevant points for markets to take note of. Again, the main message here is basically a high-level and top-down outline of what they are trying to achieve. You’d hardly see lawmakers and policymakers dive into much detail when providing this overview as they begin the annual session this week.
The most important takeaway so far is that China is outlining that it will be setting out a 2026 GDP target of 4.5% to 5.0%. Analysts were expecting the target to be around there with some estimating that it could just even be set at 4.5%. It is a slight step down from the 2025 GDP target of 5.0%. But if we know Beijing and I’m sure we all do, expect China to be able to meet this new target by hook or by crook.
