China flags weak domestic demand as policymakers prepare 2027 growth measures

Investing.com -- China’s top economic planning agency has identified weak domestic demand as a major challenge for the economy, signaling that efforts to encourage private investment and support business activity will remain priorities as officials prepare policies for 2027.

The National Development and Reform Commission outlined its concerns following a Friday meeting between its director, Zheng Shanjie, and executives from private companies, according to an agency statement.

Zheng pointed to an imbalance between the country’s production capacity and consumer demand, alongside pressure from external economic developments. The assessment comes as Beijing considers measures to support growth in the coming year.

Retail sales increased just 1.1% in the first nine months of 2026 compared with the same period a year earlier, according to figures from the National Bureau of Statistics, illustrating the weakness in household spending.

The agency said it would seek to encourage more private-sector investment, accelerate major construction and development projects, and strengthen its monitoring of economic conditions.

Officials also intend to expand research into possible policy responses, with the consultation providing an opportunity for businesses to outline the obstacles they face and propose measures for next year.

Executives attending the meeting called for improved access to financing and greater support for their energy requirements. They also urged authorities to tackle excessive competition that they said was undermining orderly business activity.

The requests point to pressures extending beyond consumer spending, with companies seeking more favorable operating conditions as policymakers weigh how to stimulate investment.

The planning agency’s focus on private businesses suggests investment incentives could form part of its approach to addressing the gap between supply and demand, although the statement did not announce specific new stimulus measures.

The discussions also highlight the challenge facing Chinese officials as they develop next year’s economic agenda: supporting productive investment without allowing already weak demand to fall further behind the country’s capacity to supply goods and services.