China's leadership has declared domestic demand its top economic focus for 2026, reported Bloomberg, signalling a cautious stance on stimulus while pledging to strengthen the home market.

The Communist Party's Politburo said in its December meeting that the country must rely on domestic demand as the main driver of growth and build a strong internal market. Officials also promised to foster what they termed new productive forces, indicating that sweeping restrictions on manufacturing are unlikely in key sectors.

The emphasis on domestic demand comes after recent signs of slowing momentum, with investment retreating sharply. Exports have remained resilient despite US tariffs, pushing China's trade surplus beyond US$1 trillion for the first time. However, Beijing faces growing pressure to rebalance its economy away from heavy reliance on external trade.