listen to this article4 minutes
information
Thousands of Chinese officials gathered in Beijing for the opening ceremony of the National People’s Congress, where delegates are approving the country’s economic and political roadmap for the next five years.
China has set a gross domestic product (GDP) growth target of 4.5% to 5% for 2026, a downward revision from a recent target of “around 5%,” according to a government report reviewed by state news agency Xinhua on Thursday.
Recommended stories
list of 4 itemsend of list
The decline in growth reflects a slowdown in China’s economy, caused in part by the collapse of the real estate sector, which once accounted for 25-30% of GDP.
“The growth target is very realistic,” said Tiancheng Xu, China economist at the Economist Intelligence Unit, noting that the numbers reflect a trend toward more conservative expectations in China.
“This is a further shift from a ‘numbers first’ mindset to a ‘quality first’ mindset,” Xu told Reuters.
“The Beijing government does not necessarily consider high growth rates to be a good thing, as it may encourage local authorities to exaggerate growth through white elephant projects and data manipulation,” Xu said.
“It’s about delivering more tangible economic outcomes, such as increasing household income and expanding access to public services,” Xu added.
China also intends to increase defense spending by 7%, the lowest level in five years, although higher than in other regions, according to Reuters.
Facing a prolonged economic downturn, China is transitioning from an economy driven by manufacturing and exports to one driven by consumption and cutting-edge technology. It is also seeking greater industrial independence in the face of political headwinds from the United States.
Other ongoing challenges facing the world’s second-largest economy include deflationary pressures, weak consumer confidence, high youth unemployment and the impact of US President Donald Trump’s tariffs and trade war.
“A society where it is easy to have children”
Last year, China’s GDP rose 5% to 140.19 trillion yuan ($20.28 trillion), according to Chinese Premier Li Qiang’s annual government work report released at the National People’s Congress on Thursday.
The lengthy report also details other goals, including China’s 2026 fiscal stimulus plan, which includes a target of about 30 trillion yuan (about $4.3 trillion) in public spending, according to Xinhua.
The working report said China would continue state support for advanced industries such as “integrated circuits, aerospace, biomedicine, and low-altitude economy” and mentioned the use of drone technology in everything from logistics to agriculture to emergency services.
According to reports, authorities have begun to target the problem of “entrapment”, or excessive competition, between domestic companies that often leads to overproduction and low-quality products.
The working paper also touched on how China intends to address social and environmental issues, including population decline caused by an aging society, declining birthrates, and the long-term effects of the now abolished one-child policy.
According to Xinhua News Agency, China aims to become a “childbirth-friendly society” and intends to expand services for the growing population of people over 60.
It also aims to move away from coal and other fossil fuels to renewable energy sources and reach a peak in carbon dioxide emissions by 2030, the report said.
The National People’s Congress will be held in Beijing in parallel with the Chinese People’s Political Consultative Conference (CPPCC). The CPPCC is an independent advisory body to the country’s leadership and submits feedback and suggestions for future legislation.
The National People’s Congress and the CPPCC are collectively known as the “Two Sessions.”
The most important event this week will be the publication of China’s 15th Five-Year Plan, which outlines its medium-term development goals from 2026 to 2030. China aims to double its 2020 GDP per capita by 2035 and become a “moderately developed” economy, Xinhua News Agency said.
