"When China announced the consumption stimulus package for 2026, the markets came to life."

China Announces New Stimulus Package for Economic Stability

China has announced the first tranche of its new stimulus program aimed at supporting domestic demand. The country, which is the world's second-largest economy, continues its efforts to combat external challenges.

62.5 Billion Yuan Funding Plan

The National Development and Reform Commission has announced that the government plans to finance the first tranche of subsidies by selling ultra-long special government bonds worth 62.5 billion yuan (8.9 billion dollars).

Local Governments and Subsidy Strategy

The commission stated that it will guide local governments to use subsidies in a balanced and orderly manner to maximize the impact of the incentives.

Years of Struggling with Challenges

The Chinese government is introducing new incentives to stabilize consumption due to the housing slump and deflation that has continued since mid-2024. Despite a tariff truce with the U.S., it prioritizes expanding domestic demand due to tensions with other countries.

300 Billion Yuan Support Package

This year, a total of 300 billion yuan has been allocated for a stimulus package to boost sales of consumer goods such as cars, smartphones, and home appliances. This amount provides support that is double that of 2024.