China Unveils Fiscal-Financial Policy to Boost Domestic Demand

China's cabinet, chaired by Premier Li Qiang li qiang, announced a comprehensive fiscal-financial policy package on January 9, 2026, aimed at boosting domestic demand and household consumption. The policy measures include 62.5 billion yuan in special treasury bonds allocated for consumer trade-in subsidies, specifically targeting home appliance and new energy vehicle replacements. This initiative is part of a broader strategy to stimulate economic momentum at the beginning of the year.

The newly unveiled package combines fiscal support with financial incentives to create a robust framework for economic growth. The government has introduced interest-subsidy policies to reduce borrowing costs for service providers and small firms. Additionally, the plan includes expanded loan programs to facilitate equipment upgrades, ensuring that small and medium enterprises can access the necessary resources for growth.