China has set its lowest annual growth target since 1991, aiming for 4.5%-5% in 2026 amid domestic and global challenges. The announcement came during the country’s annual “two sessions” political meetings, alongside preliminary details of the 15th Five Year Plan.
Premier Li Qiang highlighted investments in innovation, high-tech industries, AI, green energy, and household consumption to strengthen economic resilience. The plan also prioritises population support, with measures to boost childbirth rates, healthcare, and education.
Key developments:
• Over 100 major projects planned to expand industrial capacity, transport, and energy sectors.
• China faces a shrinking population, weak domestic spending, and property sector struggles.
• Manufacturing and exports continue to underpin growth, with a record $1.19tn trade surplus in 2025.
• Policies to support the “silver economy” and ageing population are being expanded.
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