MNI China Press Digest Dec 9: Politburo, Car Sales, Exports

Highlights from Chinese press reports on Tuesday:

• Following the December Politburo meeting, authorities are expected to place greater emphasis on the coordination of fiscal and monetary policies, along with the integration of structural policies and stock revitalisation, according to experts interviewed by Yicai. The approach was likely to combine the strengths of both existing and incremental policy adjustments. Beijing’s ultimate goal was to stabilise economic growth while enhancing both quality and efficiency, according to Zhao Wei, chief economist at Shenwan Hongyuan. Wang Qing, chief macro analyst at Dongfang Jincheng, noted that fiscal policy in 2026 will remain proactive with domestic demand taking the lead. Tao Chuan, chief economist at Guolian Minsheng Securities, emphasised that the "cross-cyclical adjustment" of monetary policy could mean the frequency of interest rate cuts and reserve requirement reductions would decrease compared to a simple counter-cyclical strategy. Consequently, in 2026, monetary policy was expected to rely more heavily on structural tools to address these underlying issues and support sustainable economic growth.
• China's retail car sales are unlikely to experience a year-end surge, with November overall sales reaching 2.2 million units—an 8.1% year-on-year decline and a 1.1% month-on-month decrease, as reported by Yicai. The penetration rate of NEVs in domestic retail reached 59.3% in November, up 7 percentage points compared to the same period last year, setting a new record. The Car Passenger Federation said after the large-scale suspension of subsidies in various places, the average daily subsidy scale in November had dropped to 30,000 vehicles.
• China’s unexpected rebound in export growth to 5.9% in November was down to several key factors, including a lower base from the previous year, an overall global trade recovery and notable growth in the export of chips and automobiles, according to Feng Lin, Executive Director of Macro Research at Dongfang Jincheng. The increases were largely driven by the global AI investment boom and China's ongoing manufacturing transformation, Feng added. Data revealed that exports of integrated circuits and automobiles surged by 34.2% and 53.0% y/y, effectively offsetting the decline in exports of traditional labor-intensive goods such as bags, toys, and clothing—products that were also the primary factors contributing to the drop in China’s exports to the U.S.