President Xi Jinping has prioritized accelerating consumption and innovation, especially in artificial intelligence, as essential tasks for China to navigate economic challenges in 2026, according to previously unreleased comments published this week.
The remarks, delivered before the start of the year, were made public in a speech excerpt featured in Monday's edition of the Qiushi Journal, the Chinese Communist Party's leading theoretical publication. Xi's directives underscore a strategic focus on bolstering domestic demand as the cornerstone of economic stability amid Beijing's shift toward harnessing internal market dynamism.
Xi devoted significant emphasis to expanding domestic consumption, positioning it as the primary economic anchor. He highlighted the need to cultivate growth in this area to counter headwinds facing the world's second-largest economy.
“We shall grow incomes for urban and rural residents, expand the supply of quality goods and services, eliminate unreasonable restrictions on consumption and tap potential in culture and tourism,” the Qiushi Journal quoted Xi as saying.
The president also advocated for optimizing programs related to consumer goods trade-ins and equipment upgrades, while stressing the immense potential and strategic advantages of China’s “ultra-large market.” These measures aim to unlock broader economic vitality through enhanced consumer spending.
Xi's comments on prioritizing “AI-plus” initiatives alongside consumption signal a dual-track approach to foster technological breakthroughs and income growth, potentially laying the groundwork for policy announcements at upcoming parliamentary meetings in March.
This pivot reflects Beijing's broader economic policymaking evolution, placing domestic demand at the forefront to ensure long-term stability as external pressures mount in 2026.
