China has set a GDP growth target of 4.5-5% for 2026, the lowest goal in decades, as the country prepares for a slower but more sustainable economic path. The target was announced by Chinese premier Li Qiang during the opening session of the National People's Congress (NPC) in Beijing.
The plan reflects a shift away from traditional drivers such as exports and construction toward what Beijing calls "high-quality growth", centred on technology, innovation and structural reforms. Authorities are also grappling with structural challenges including an ageing population, weak domestic demand and a struggling property sector.
China also released a draft of its 15th Five‑Year Plan of China for 2026-2030, which focuses on boosting consumption and strengthening high-tech industries. Despite the modest target, officials say the country remains confident it can maintain steady growth while adapting its economic model.
Yesterday, China also published its defence budget for 2026, which includes a 7% increase in defence spending, a slight decrease on previous years.