Govt Work Report also eyes robust domestic market, boost for R&D
By CAO DESHENG
China has set its GDP growth target for 2026 at 4.5 to 5 per cent, a moderate projection that experts said allows greater policy flexibility to focus on high-quality development while maintaining stable growth, given the structural challenges in the country’s economy and the uncertain global landscape.
The annual growth target was unveiled on March 5 in the Government Work Report delivered by Premier Li Qiang to the National People’s Congress, as the nation’s top legislature opened its annual session in Beijing.
The draft outline of the 15th Five-Year Plan (2026-30), a blueprint for the country’s economic and social development in the next five years, was also reviewed during the opening meeting of the fourth session of the 14th NPC.
“The GDP growth target is well aligned with our long-range objectives through the year 2035 and broadly in line with the long-term growth potential of China’s economy,” the Government Work Report said.
In the next five years, China expects to keep its GDP growth within an appropriate range, with annual growth rates to be determined in light of actual conditions, according to the report.
Over the past five years, China’s economy has grown steadily amid strong headwinds, with an average annual growth of 5.4 per cent, well above the global average.
In 2025, the GDP of the world’s second-largest economy surpassed 140 trillion yuan ($20.3 trillion) for the first time.
This year’s growth target comes amid the Chinese economy facing a grave and complex landscape, where external shocks and challenges are intertwined with domestic difficulties and tough policy choices.
Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research, said that this year’s GDP growth target is “reasonable and necessary”.
“On the one hand, it aligns with our medium — and long-term development goals; on the other hand, this growth rate target also leaves room for structural adjustment in the pursuit of high-quality development,” Sun said.
The main targets for development in 2026 also include a surveyed urban unemployment rate of around 5.5 per cent, over 12 million new urban jobs, an increase in the consumer price index of around 2 per cent, growth in personal income in step with economic growth, a basic equilibrium in the balance of payments, and a drop of around 3.8 per cent in carbon dioxide emissions per unit of GDP.
The report said that the nation will continue to implement a more proactive fiscal policy and an appropriately accommodative monetary policy.
To pursue innovation-led and green development, China projects an annual average increase of at least 7 per cent in nationwide R&D spending, and envisages a total reduction of 17 per cent in carbon dioxide emissions per unit of GDP between 2026 and 2030, according to the report.
The report laid out key tasks for the government in 2026, pledging to make efforts to build a robust domestic market, foster new growth drivers at a faster pace, and move faster to achieve greater self-reliance and strength in science and technology.
The report also highlighted the country’s commitment to continuing to deepen reform in key areas and expand high-standard opening-up. “We will expand market access and open up more areas, particularly in the service sector. We will further expand opening-up trials for value-added telecom services, biotechnology, wholly foreign-owned hospitals, and other fields, take well-ordered steps to expand opening up in the digital sector, and shorten the negative list for cross-border trade in services.”
Zhou Lanxu, Ouyang Shijia and Zhang Zhouxiang contributed to this story.
Caption: Employees work on a production line at a welding workshop of Yangzhou Hongquan Industrial Co in Yangzhou, Jiangsu province, on February 28. REN FEI / FOR CHINA DAILY
