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China signals it will rely on fiscal stimulus to manage economy in 2026

China plans to maintain a budget deficit near 4% of GDP and use flexible monetary tools to support growth and ease local government debt pressures in 2026.

The commitments made at the Central Economic Work Conference underscore Beijing’s intent to keep spending high and deploy flexible monetary tools as it faces pressure to boost domestic demand and offset global trade tensions.

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Business Times broke the news in on Thursday, December 11, 2025.
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