China is drafting a five-year plan to expand domestic demand, redoubling efforts to boost consumption and investment as the world's second-largest economy seeks to ensure sustainable growth amid persistent external uncertainties, officials and experts said.
The National Development and Reform Commission, the country's top economic regulator, is coordinating efforts across multiple government departments to formulate an implementation plan to expand domestic demand for the 2026-30 period, said Zhou Hongwei, deputy director of the commission's department of national economy.
The push comes as first-half data revealed a widening K-shaped recovery, with high-tech and exports pulling ahead while consumption and investment remained weak.
According to a commentary released by Moody's Ratings on Friday, credit conditions in China will "remain stable" in the second half of this year as fiscal and monetary support, strong exports, and technological advances offset weak domestic demand.
Sustained medium-term growth depends on addressing supply and demand imbalances, local government fiscal strain, and uneven sector performance, with AI and high-tech industries outperforming property and consumer-oriented sectors, it added.
