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China Sets 2026 Growth Target at 4.5%–5% and Unveils Tech‑Focused Five‑Year Plan

Beijing signals a pivot to targeted support focused on tech self‑reliance to navigate property and demand strains.

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 announced the lowest GDP goal since 1991, kept consumer inflation at around 2%, and framed the outlook as emphasizing higher‑quality growth.
  • The draft 15th Five‑Year Plan prioritizes indigenous innovation in AI, semiconductors, robotics, quantum and biomedicine, with nationwide R&D spending projected to rise at least 7% annually.
  • The budget targets a deficit around 4% of GDP and maintains bond issuance, including 1.3 trillion yuan in ultra‑long special treasury bonds and 4.4 trillion yuan in local special‑purpose bonds.
  • Defense outlays will rise about 7% to roughly 1.91 trillion yuan, a slightly slower pace than recent years but consistent with efforts to bolster military readiness.
  • To bolster demand and steady housing, policies include 250 billion yuan in trade‑in subsidies for consumer goods and city‑specific steps to cut unsold property, with the NPC set to finalize measures in the coming days.