China announced initial public spending plans worth a total of US$51 billion (RM206.91 billion) to boost consumption and investment next year, moving early to shore up demand and cushion the economy against rising external headwinds.
Beijing will front-load 295 billion yuan (RM171.08 billion) in 2026 to support national strategic and security initiatives, as well as investment plans under the central government budget, the National Development and Reform Commission said on Wednesday (Dec 31).
A day earlier, the NDRC said it would provide an initial 62.5 billion yuan to fund its consumer goods trade-in subsidies programme next year. That amount will be raised through the issuance of ultra-long special sovereign bonds.
China is pressing ahead with stimulus measures launched in 2024, focusing on targeted support for investment and consumption to offset persistent weakness in the property sector and deflation. Expanding domestic demand has been made the top economic priority for next year, as authorities remain vigilant to potential tensions with other countries despite a tariff truce with the US.
The 295 billion yuan will go toward supporting about 1,000 projects, including urban underground pipeline networks, high-standard farmland, logistics cost reduction, urban renovation, water conservation and environmental protection, NDRC spokesperson Li Chao said at a briefing.
“We are seizing the window of opportunity and taking proactive action to ensure smooth policy and operational continuity over this year and next,” Li said.
By comparison, China raised 800 billion yuan this year via ultra-long special sovereign bond sales for national strategic and security projects. Another 735 billion yuan was allocated from the central budget for investment.
Trade-in programme
As for the trade-in programme, Beijing allocated 300 billion yuan this year for consumer goods subsidies — double the amount in 2024 — to encourage purchases ranging from cars and smartphones to home appliances.
In 2026, authorities will offer electric vehicle trade-in subsidies of up to 12% of a vehicle’s price, capped at 20,000 yuan, while continuing the programme for electronic goods such as mobile phones, tablets and smartwatches. Some kitchen appliances will be excluded from the programme next year, reducing the number of eligible home goods to six from 12.
Local governments will be guided to implement the subsidies in a “balanced and orderly way” to maximise their impact, the NDRC said.
Source: theedgemalaysia