Beijing (TDI): China has set a modest economic growth target of 4.5% to 5% for 2026; a shift toward slower but more sustainable expansion as the world’s second-largest economy grapples with domestic challenges and global uncertainties.
The target was announced by Chinese Premier Li Qiang during the annual government work report delivered at the opening of the National People’s Congress in Beijing.
The range marks the lowest growth goal in decades, reflecting Beijing’s cautious outlook amid a property market slump, weak consumer demand, and geopolitical tensions affecting global trade.
China’s economy expanded by around 5% in 2025, meeting the government’s previous target but relying heavily on strong exports to offset subdued domestic consumption.
Officials now acknowledge that sustaining growth will require structural adjustments, including boosting consumption and accelerating innovation in advanced technologies.
In the policy blueprint for 2026, the government emphasized technological self-reliance, investment in high-tech industries, and expansion of research and development spending.
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China now aims to generate over 12 million new urban jobs while maintaining unemployment around 5.5%. It is also moving ahead with its 15th Five-Year Plan (2026–2030), which prioritizes innovation-driven growth, supply-chain resilience, and industrial upgrading.
Alongside economic policy, Beijing reiterated a firm stance on global geopolitics. Officials pledged to oppose “hegemonism and power politics,” signaling continued resistance to perceived external pressure and foreign interference in China’s development path.
Meanwhile, the government plans to increase defense spending by about 7%, reaching roughly 1.9 trillion yuan ($270 billion), as part of efforts to modernize the military and enhance national security capabilities.
The lower growth target this year indicates that Chinese policymakers are becoming more tolerant toward slower expansion while focusing on economic quality and stability.
Beijing maintains that steady reform, technological progress, and domestic demand will enable China to sustain development and strengthen its position in an increasingly competitive global economy.
