Chinese President Xi Jinping, left and Chinese Premier Li Qiang chat during the opening session of the National People’s Congress (NPC) in Beijing, Thursday, March 5, 2026.
Ng Han Guan/AP
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Ng Han Guan/AP
BEIJING — China has indicated a focus on continuity over change for its economy, with a slightly lower growth target set for this year amidst challenges such as a property slump and external uncertainties. Premier Li Qiang announced a target of 4.5% to 5% annual growth, compared to last year’s 5% growth. This marks the lowest growth target since 1991.
Li emphasized the need to address challenges while maintaining achievements, highlighting the goal of reviving the economy through increased domestic spending and advancing China’s position in advanced technologies.
The government aims to support domestic demand while prioritizing industrial self-reliance, rather than implementing major stimulus measures. The focus remains on strengthening the economy and shifting to new drivers of growth.
The draft budget for 2026 includes a 7% increase in defense spending, with a focus on reforming the military and ensuring Communist Party control. The report also acknowledges the challenges posed by geopolitical risks and the need to boost domestic consumption.
China’s efforts to stabilize the economy include issuing bonds for consumer rebates and implementing city-specific policies to control the property market. The government aims to improve living standards and increase consumer spending to drive economic growth.
Despite facing various challenges, China remains committed to its long-term growth strategy and maintaining political loyalty in the military. The government’s focus on balancing economic priorities and addressing internal and external challenges reflects its strategic approach to sustainable growth.
