Politburo July Meeting Maps 2026 H2 Policy: Proactive Fiscal, Moderately Loose Monetary Stance
The Political Bureau of the CPC Central Committee met in July to assess the economy and set H2 2026 policy. It called for a more proactive fiscal policy and moderately loose monetary policy, faster fiscal and bond spending, and timely incremental measures. Official data show H1 2026 GDP rose 4.7% year on year to RMB 69.5704 trillion, with Q2 growth at 4.3%. The meeting also addressed consumption, investment, industrial upgrading, risk prevention, and opening up.
The Political Bureau of the CPC Central Committee recently held a meeting to analyze the current economic situation and arrange economic work for the second half of the year. The meeting held that China's economy is showing a development trend of new drivers and improved structure, while calling for high attention to difficulties and challenges in economic operations, firm confidence, facing difficulties head-on, and making good use of various opportunities and advantages. The meeting made clear that in the second half of the year, a more proactive fiscal policy and a moderately loose monetary policy will be implemented, the effectiveness of existing stock policies will be fully leveraged, pragmatic and effective incremental policies will be planned and introduced in a timely manner, and counter-cyclical adjustment will be strengthened.
In the first half of 2026, gross domestic product reached RMB 69.5704 trillion, up 4.7% year on year at constant prices. In the first half, value added of industrial enterprises above designated size grew 5.4% year on year, high-tech manufacturing value added grew 13.3%, and equipment manufacturing value added grew 9.3%. Total retail sales of consumer goods grew 1.3% year on year, and service retail sales grew 5.3%. Fixed asset investment nationwide (excluding rural households) fell 5.7%, and real estate development investment fell 18%. In the second quarter, the GDP deflator returned to positive territory for the first time in three years, and nominal GDP growth reached 5.9%.
The meeting proposed that macro policies should exert force and improve efficiency, accelerate the pace of fiscal spending and bond fund use, and vigorously advance the construction of the 'two major' projects and the 'two new' initiatives. The meeting also proposed planning and introducing pragmatic and effective incremental policies in a timely manner. GDP grew 4.3% year on year in the second quarter.
The meeting proposed effectively expanding domestic demand, adapting to the consumption needs of different groups to expand high-quality supply, and tapping the potential of service consumption. The National Development and Reform Commission has issued the 2026 Work Plan for Improving Quality and Benefiting People in Service Consumption, putting forward 64 specific tasks and measures. On the investment side, the meeting proposed solidly advancing the planning and construction of the 'six networks': water networks, new power grids, computing networks, next-generation communication networks, urban underground pipeline networks, and logistics networks. The meeting proposed accelerating the building of a modern industrial system, strengthening long-term and stable support for basic research, deeply implementing the 'artificial intelligence+' action, developing new forms of the intelligent economy, improving the artificial intelligence governance system, actively promoting breakthroughs in frontier technologies and the development of future industries, focusing on building new pillar industries, and continuing to promote the transformation and upgrading of traditional industries.
The meeting proposed formulating and implementing regulations for building a unified national market, and continuing to comprehensively rectify 'involution-style' competition. In terms of risk resolution, the meeting proposed effectively building a safety barrier covering four major areas: real estate, local government debt, small and medium-sized financial institutions, and the capital market. In the real estate sector, it proposed stabilizing the real estate market; in the local government debt sector, it proposed implementing a package of debt resolution plans; in the small and medium-sized financial institutions sector, it proposed reforming to mitigate risks, reducing quantity and improving quality; and in the capital market sector, it proposed deepening comprehensive reform of investment and financing. In terms of opening up, the meeting proposed expanding space for mutually beneficial international economic and trade cooperation, vigorously developing service trade, promoting balanced trade development, improving the management system for outbound investment and the overseas comprehensive service system, and actively attracting and utilizing foreign investment.