On December 8, 2025, Chinese President Xi Jinping presided over a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee to analyze and study the economic work of 2026 and review a set of regulations on the CPC’s leadership over law-based governance in all respects.

Underscoring that 2025 is a year of significance in the process of advancing Chinese modernization, the meeting noted that China has implemented more proactive and effective macro policies, and that the main goals for economic and social development are expected to be successfully accomplished.

At the following annual Central Economic Work Conference held from December 10 to 11, 2025, Xi reviewed the country’s economic work in 2025, analyzed the current economic situation, and arranged next year’s economic work. “Over the past five years, China has effectively navigated various shocks and challenges, and achieved major new accomplishments in the cause of the Party and the country,” the meeting noted.

Throughout 2025, Xi undertook extensive domestic inspection tours and overseas visits, convening and participating in a series of high-level meetings, and giving important instructions on national development priorities. All this provides a comprehensive lens to observe China’s economic governance, illuminates the strategic priorities that have shaped China’s policy agenda over the past year, and signal the continuity and direction of the country’s economic policy framework as it moves into 2026.

2025 rewinds

Reflecting on China’s economic performance in 2025, the December 8 meeting noted that the economy has remained generally stable while making steady progress. New quality productive forces have developed steadily, reform and opening-up have advanced with new steps, and active progress has been made in defusing risks in key areas. Public well-being has been better safeguarded, and overall social stability has been maintained.

China’s GDP grew by 5.2 percent year-on-year in the first three quarters of 2025, and full-year economic output is expected to approach RMB 140 trillion. These figures highlight both the resilience of China’s growth and the solid foundation supporting its long-term development objectives.

An outstanding feature of 2025 has been the rapid development of new quality productive forces, particularly in the field of artificial intelligence (AI). During his inspection tour to Shanghai in April 2025, Xi visited Shanghai Foundation Model Innovation Center, a large-model incubator. He received briefings on the city’s AI industry, inspected product demonstrations, and learned about research and business progress. Praising the city’s achievements, Xi stressed that fast-evolving AI technologies are entering a phase of explosive growth. He called on Shanghai to build on its successful experience in fostering a large-model ecosystem, deepen exploration, and take the lead in both AI development and governance.

Xi also toured an AI product experience store featuring smart glasses, intelligent toys, and other innovative devices. After learning about their functions and markets and trying on a pair of smart glasses himself, he emphasized China’s advantages in data resources, industrial capacity, and market scale. Noting that China enjoys rich data resources, a complete industrial system, and a huge market, Xi said the country holds broad prospects for AI development, calling for enhanced policy support and talent cultivation.

China’s AI sector has gained momentum over the past several years. In 2024, the industry exceeded RMB 900 billion in value, marking 24 percent year-on-year growth. This momentum is fueled by robust innovation capacity: China now accounts for roughly 60 percent of the world’s AI-related patents. By the end of the third quarter of 2025, China had more than 5,300 AI enterprises, which is about 15 percent of the global total, forming a comprehensive ecosystem spanning foundational infrastructure, model frameworks, and diverse application scenarios.

To guide and accelerate this growth, the State Council issued a guideline in August to implement the “AI Plus” initiative. The policy calls for deeper integration of AI into scientific research, industrial upgrading, consumption, social services, public governance, and international cooperation, seeking to translate China’s growing industrial and technological strengths into broader economic and societal benefits.

This initiative was stressed again at the Central Economic Work Conference, which noted that efforts will be made to advance the “AI Plus” Initiative, improve AI governance, and foster innovation in science and technology finance.

Another key theme of China’s development is its unwavering commitment to high-standard opening-up. The Hainan Free Trade Port (FTP), which was personally planned and advanced by Xi, stands as a flagship example. In November, while receiving a work report on the building of the Hainan FTP, Xi emphasized that its establishment represents a major policy decision by the CPC Central Committee to comprehensively deepen reform and opening-up in the new era.

The Hainan FTP will officially launch island-wide special customs operations on December 18, 2025, which Xi called a landmark move of China to unwaveringly expand high-standard opening-up and promote the development of an open world economy. “Building the Hainan FTP with high standards is aimed at advancing high-quality development of Hainan and contributing to forging a new development paradigm nationwide,” said Xi.?

According to the?Master Plan for the Construction of Hainan Free Trade Port, a free trade port system focusing on trade and investment liberalization and facilitation will be established in Hainan by 2025, and is expected to become a new high ground for China’s open economy by 2035. It is envisioned to be a high-level free trade port with strong international influence by the middle of this century.

Early signs of the Hainan FTP’s growth potential are already emerging, with concerts and events economy serving as a clear illustration. Benefiting from the FTP’s preferential measures, ranging from streamlined customs procedures to more open market access for cultural and entertainment activities, Hainan has become an increasingly attractive destination for internationally renowned performers. These policy advantages have drawn audiences from across China and abroad, creating strong spillover effects for tourism, hospitality, and retail.

For example, from November 28 to 30, 2025, Haikou hosted concerts by Chinese singer Hua Chenyu and American pop star Katy Perry. Leveraging the supportive environment created by the FTP, the two events drew over 120,000 attendees and generated RMB 831 million in economic revenue. This demonstrates how high-standard opening-up policies are translating directly into new drivers of growth and contributing to the rising dynamism of Hainan’s cultural and tourism sectors.

Looking back at 2025, China’s economy has demonstrated resilience amid global uncertainties, dynamism in emerging industries, and the capacity to manage risks while pursuing long-term goals. The rapid development of new quality productive forces, continued breakthroughs in scientific and technological innovation, deepening reform and high-standard opening-up, and improving livelihoods all point to an economy that is not only stabilizing but also strengthening its foundations for future growth.

The future in plan

The December 8 meeting emphasized that the year 2026’s economic work should adhere to the principles of pursuing progress while ensuring stability and improving both quality and effectiveness. One secret of China’s sustained growth lies in its long-term planning. The year 2025 marks the conclusion of China’s 14th Five-Year Plan (2021-2025) and the start of the formulation process of its?15th Five-Year Plan?(2026-2030), in which Xi has provided consistent strategic guidance.

At a symposium on China’s economic and social development in the 15th Five-Year Plan period in April 2025, Xi stressed that the scientific formulation and consistent implementation of five-year plans stand as an important piece of experience in the CPC’s approach to governing the country and a significant political advantage of socialism with Chinese characteristics.

In October 2025, the?Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development?was adopted at the fourth plenary session of the 20th CPC Central Committee. It put forward a series of objectives including achieving greater self-reliance and strength in science and technology, steering the development of new quality productive forces, promoting high-standard opening-up, and creating new horizons for mutually beneficial cooperation.

Xi explained that following the approach of the 14th Five-Year Plan, the draft document also defines the promotion of high-quality development as the main focus in economic and social development in the 15th Five-Year Plan period.

He stressed that to promote high-quality development, we must first and foremost intensify efforts toward achieving greater self-reliance and strength in science and technology, actively develop new quality productive forces, and deliver substantial progress and new breakthroughs in boosting scientific and technological innovation, thereby fostering new drivers of growth, and promoting economic structural improvement and upgrading. These priorities signal that innovation, openness, and modernization will shape China’s economic trajectory in the years ahead.

As for the priorities of 2026, the Central Economic Work Conference specified eight major tasks, including strengthening domestic demand and stabilizing investment; advancing innovation to build new growth drivers; deepening reforms to enhance development vitality; expanding high-standard opening-up and international cooperation; promoting coordinated regional and urban-rural development; accelerating green and low-carbon transformation; improving people’s livelihood through stronger employment, education, and healthcare systems; and preventing and defusing major risks, especially in real estate and local government debt. Together, these priorities aim to sustain high-quality development and reinforce China’s long-term economic resilience.

As China moves into 2026 and begins the 15th Five-Year Plan period, its commitment to innovation-driven development, high-standard opening-up, and high-quality growth will continue to reinforce the economy’s positive prospects. In a world filled with uncertainty, China’s steady, strategically guided, and forward-looking development approach demonstrates that its economy not only has strong resilience but also shows dynamic, enduring momentum.