By Qaiser Nawab, Chairman BRISD
Beijing’s annual Two Sessions, comprising the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), have once again captured global attention as platforms for setting the nation’s socioeconomic agenda. On March 5, 2026, Premier Li Qiang submitted the Government Work Report to the NPC, outlining a comprehensive review of the past year, achievements over the 14th Five-Year Plan (2021-2025), and ambitious yet pragmatic goals for the year ahead and the forthcoming 15th Five-Year Plan (2026-2030).
With a GDP growth target set at 4.5-5 percent for 2026, the document reflects a flexible approach tailored to domestic reforms and international uncertainties, aiming to foster resilient growth that benefits both China and the world.
The Two Sessions, often dubbed China’s most significant political event, bring together thousands of deputies and advisors to deliberate on policies that shape the world’s second-largest economy. Premier Li’s address highlighted the resilience demonstrated in 2025, where GDP expanded by 5 percent to reach 140.19 trillion yuan (about $19.3 trillion), despite challenges such as sluggish global demand and domestic structural adjustments. Reflecting on the 14th Five-Year PlanThe report dedicates considerable space to recapping the accomplishments of the 14th Five-Year Plan, painting a picture of transformative progress across multiple fronts. Over the past five years, China’s economy maintained an average annual growth rate of 5.4 percent, far outpacing the global average and crossing successive GDP milestones from 110 trillion yuan to 140 trillion yuan. This expansion was not merely quantitative; it was bolstered by structural enhancements that elevated the nation’s innovation capacity and industrial strength.
Key highlights include the creation of over 60 million urban jobs, with 12.67 million added in 2025 alone, keeping urban unemployment rates stable. Grain output surged to 715 million metric tons in 2025, ensuring food security for 1.4 billion people. In manufacturing, China solidified its position as the global leader, with value-added output topping the world for 16 consecutive years. The new-energy vehicle sector exemplified this prowess, producing over 16 million units in 2025, while breakthroughs in core technologies from integrated circuits to aerospace enhanced supply chain resilience.Reforms and opening-up efforts also accelerated. Foreign investment restrictions in manufacturing were fully lifted, and high-standard opening-up expanded, maintaining China’s status as the largest goods trading nation. Per capita disposable income grew at an annual average of 5.4 percent, lifting living standards and supporting rural revitalization. Ecological gains were notable, with air quality improving to 89.3 percent good or excellent days in major cities, forest coverage exceeding 25 percent, and the establishment of the world’s largest renewable energy system.
2026 Targets
The GDP growth objective of 4.5-5 percent marks a slight downward adjustment from recent years’ “around 5 percent” goals, acknowledging persistent external pressures like weakening global trade and geopolitical tensions. Other key indicators include creating over 12 million new urban jobs, capping consumer price index (CPI) rises at around 2 percent, achieving grain output of about 700 million metric tons, and reducing CO2 emissions per unit of GDP by approximately 3.8 percent.
Fiscal policies underscore this commitment to stability and stimulus. The deficit-to-GDP ratio is pegged at around 4 percent, an increase of 230 billion yuan from 2025, while general public budget expenditure hits a historic 30 trillion yuan. To fund major projects, 1.3 trillion yuan in ultra-long special treasury bonds will be issued, alongside 4.4 trillion yuan in local government special-purpose bonds. Central budget investments total 755 billion yuan, with an additional 800 billion yuan in bonds earmarked for strategic initiatives. These allocations aim to bolster infrastructure, innovation, and consumption.
For the 15th Five-Year Plan, broader aspirations include maintaining reasonable GDP growth, boosting R&D spending by at least 7 percent annually, cutting CO2 emissions by 17 percent cumulatively, and elevating the digital economy’s share to 12.5 percent of GDP. Life expectancy is targeted at 80 years, with average schooling years for the working-age population reaching 11.7. Energy production capacity will expand to 5.8 billion metric tons of standard coal equivalent, and grain capacity to 725 million metric tons. These goals emphasize long-term sustainability, positioning China to address demographic shifts, technological disruptions, and climate imperatives.
High-Quality Growth: Innovation and Sustainability at the Core
This year, the focus sharpens on nurturing “new quality productive forces” through advancements in emerging industries like integrated circuits, aviation, biomedicine, and the low-altitude economy. Future-oriented sectors such as quantum technology, embodied AI, brain-computer interfaces, and 6G are slated for accelerated development, with “artificial intelligence plus” initiatives integrating AI across economic activities.
To build a unified national market, the report calls for regulating production capacity, standardizing practices, and curbing inefficient competition. Opening-up trials will expand in value-added telecom, biotechnology, and wholly foreign-owned hospitals, inviting global collaboration. Rural revitalization efforts include extending land contracts by 30 years and conducting a fourth agricultural census, while new-type urbanization will ease residency for rural migrants and relax education barriers.
Consumption and investment receive targeted boosts: 250 billion yuan for consumer goods trade-ins, income growth plans, and support for families through housing and childcare. Green development features prominently, with a national low-carbon transition fund and policies to promote electric vehicles and energy efficiency. Real estate measures aim to control new supply, reduce inventory, and optimize existing stock, ensuring stable housing markets.
About the Author:
Qaiser Nawab is Chairman of the Belt and Road Initiative for Sustainable Development (BRISD), an international platform focused on fostering cooperation and innovation across Asia, Africa, and Latin America. He can be reached at qaisernawab098@gmail.com
