Overview
- Beijing set its 2026 GDP goal at 4.5–5.0 percent, the lowest range since 1991, formalizing a moderation from recent years.
- The defense budget will rise about 7 percent to roughly 1.91 trillion yuan, while proposed diplomatic spending increases 9.3 percent to 70.975 billion yuan, outpacing the military’s growth rate.
- The new plan doubles down on technological self‑reliance with priority fields such as artificial intelligence, semiconductors and quantum computing, including a KI+ action plan to spread AI across the economy.
- Fiscal and financial steps include a deficit near 4 percent of GDP, 250 billion yuan in trade‑in incentives to bolster consumption, and about 300 billion yuan to strengthen state banks and channel financing to tech firms.
- Leaders acknowledged weak demand, a protracted property slump and deflationary pressures, reaffirmed exchange‑rate stability over renminbi appreciation, and maintained an export‑led stance that has drawn warnings from German industry about rising competitive pressure.