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13h ago

China Lowers 2026 Growth Goal to 4.5%–5% as NPC Unveils Tech-Focused Five-Year Plan

Beijing signals a pivot toward high-quality growth using restrained fiscal tools to back a multi‑year push for self‑reliance in advanced industries.

Chinese President Xi Jinping and other leaders attend the opening session of the Chinese People's Political Consultative Conference (CPPCC), at the Great Hall of the People in Beijing, China March 4, 2026. REUTERS/Maxim Shemetov
A dog crosses a road at a financial district with buildings under construction, in Beijing, China January 11, 2023. REUTERS/Tingshu Wang
Military delegates assemble before the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Ng Han Guan)
Chinese President Xi Jinping arrives for the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. (AP Photo/Andy Wong)

Overview

  • Premier Li Qiang’s work report sets the decades‑low target and acknowledges weak demand, a prolonged property slump and external risks.
  • The draft budget keeps the deficit near 4.0% of GDP with unchanged bond quotas, including 1.3 trillion yuan in ultra‑long treasuries and 4.4 trillion yuan in local special bonds.
  • Targeted consumption support includes 250 billion yuan in trade‑in rebates for cars and appliances, with an additional 300 billion yuan planned to strengthen state bank capital.
  • Defense spending will rise 7% to about 1.9096 trillion yuan as leaders emphasize modernization and political control following the removal of senior officers.
  • The 15th Five‑Year Plan prioritizes AI, semiconductors and robotics with nationwide R&D outlays projected to grow at least 7% annually, after 2025’s 5% growth leaned on a record roughly $1.2 trillion trade surplus.