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China Closes Two Sessions With Tech-Focused Five-Year Plan and Lower 2026 Growth Target

Leaders prioritized state-led innovation over broad fiscal stimulus, pairing a 4.5–5% goal with higher defense outlays plus a new ethnic‑unity law.

Overview

  • Lawmakers formally approved the 15th Five‑Year Plan through 2030, elevating industrial self‑reliance with major backing for AI, semiconductors, quantum technology, robotics and 6G.
  • The NPC set 2026 GDP growth at 4.5–5%, the lowest target in decades, as analysts questioned whether modest consumer support would revive weak domestic demand.
  • China lifted defense spending by about 7% to roughly 1.91–1.94 trillion yuan, with leaders emphasizing PLA loyalty and continued anti-corruption efforts across state and military bodies.
  • Parliament passed an ethnic‑unity law that critics say advances assimilation by mandating Mandarin in compulsory education for minority groups.
  • Beijing signalled high-level engagement with Washington, citing a possible XiTrump meeting as Trump announced a March 31–April 2 China visit that Chinese authorities have not confirmed.