China’s Xi prioritises ‘AI-plus’ and consumer spending to counter economic headwinds
Previously unreleased comments by Xi urge income growth and tech breakthroughs, potentially setting stage for measures ahead of March’s parliamentary meetings
President Xi Jinping has deemed the acceleration of consumption and innovation, particularly in artificial intelligence, an essential task as the world’s second-largest economy seeks to overcome challenges in 2026.
The president’s priorities, officially laid out before the year began, were revealed to the public in a speech excerpt published on Monday by the ruling Communist Party’s leading theoretical journal.
Xi emphasised the need to boost domestic demand, giving it the lion’s share of attention as an economic anchor that is central to stability, in line with Beijing’s pivot to unleash domestic dynamism in its economic policymaking.
“We shall grow incomes for urban and rural residents, expand the supply of quality goods and services, eliminate unreasonable restrictions on consumption and tap potential in culture and tourism,” the Qiushi Journal quoted Xi as saying.
He also called for optimising schemes for consumer goods trade-in and equipment upgrades, and he emphasised the immense potential and key advantage of China’s “ultra-large market”.