Five things to know about China's 2026 economic goals

BEIJING: China has unveiled its main policy priorities for the year during its annual "Two Sessions" political conclave, emphasizing economic recovery, technological self-reliance, carbon reduction, social support measures and anti-corruption efforts.

Presenting the government work report, Premier Li Qiang told delegates, including President Xi Jinping, that Beijing would prioritize boosting domestic demand and strengthening economic stability amid ongoing challenges.

Boost economy 

China set its economic growth target for the year at 4.5–5 percent, the lowest target since 1991 and slightly below last year’s goal of around five percent, according to AFP research.

Li acknowledged that the country needs to prioritize strengthening domestic demand and to implement more proactive fiscal policies.

"We will focus on vigorously boosting consumption, expanding effective investment, and fully leverage the benefits of China's super-large market," Li told ruling party cadres, including President Xi Jinping.

He acknowledged that China was facing "quite a few problems and challenges" in economic development.

Beijing has not managed to stage a full recovery from the pandemic, with a property sector crisis, flagging consumption and high youth unemployment weighing on growth.

"The imbalance between strong supply and weak demand is acute, market expectations are weak, and there are many risks and hidden dangers in key areas," the report said.

China will also aim to create over 12 million new jobs in cities and push for around two percent inflation this year.

Tech advances

China must accelerate efforts to strengthen its independence and capabilities in science and technology, Chinese Premier Li Qiang said, underscoring Beijing’s determination to lead in emerging high-tech sectors.

Technology development has become a central pillar of China’s new Five-Year Plan, which is expected to be approved during the Two Sessions. In remarks outlining the government’s priorities, Li pledged increased funding and policy support to drive “original advances” in cutting-edge industries.

These include Quantum Technology, embodied artificial intelligence, Brain–Computer Interface systems, and next-generation 6G Technology. 

Beijing has spent billions of dollars to position itself as a global leader in high-technology sectors, particularly in robotics and artificial intelligence. The government’s investment push has helped fuel rapid growth in new AI companies across the country.

Much of the momentum has been attributed to the success of startup DeepSeek, which surprised the global technology industry last year by releasing a powerful AI model developed at a significantly lower cost than many competitors.

Li said China will continue expanding the use of AI agents and promote the large-scale commercial deployment of artificial intelligence in key industries and sectors, signaling a broader push to integrate AI into the country’s economy and technological infrastructure.

Cutting carbon emissions

China, the world’s largest emitter of greenhouse gases, announced plans to intensify efforts to cut carbon emissions and accelerate its transition toward a greener economy.

In a policy report delivered Thursday, Chinese Premier Li Qiang outlined new environmental targets aimed at reducing the country’s carbon footprint while maintaining economic growth. 

Such a drop will enable us to move step by step toward the goal of peaking carbon emissions before 2030," the report said.

China will aim for a 17% reduction in carbon dioxide emissions per unit of GDP over the next five-year period.

China will foster new growth drivers such as hydrogen power and green fuels, it added, with Li pledging tighter regulation over energy-intensive projects. 

Support for elderly, parents 

China will increase the minimum basic old-age benefits for rural and non-working urban residents by 20 yuan ($2.90) per person per month, Li said.

The country's rapidly ageing population and sputtering birth rates have presented fresh challenges for authorities, which have relied on its vast workforce as a driver of economic growth.

A proactive national strategy responding to population ageing will be advanced and measures will be introduced to promote the development of the silver economy, Li said.

The country will increase the supply and quality of elderly care services, especially in rural areas.

Beijing will foster "positive attitudes" towards marriage and childbearing, the report said, adding that China will boost housing support for first-time married couples and those with their first child.

China's birth rate plunged last year to its lowest level on record, according to official data released in January.

"We will refine the maternity insurance and parental leave systems, expand demonstrations and trials for subsidised childcare services, and provide support for public-interest childcare services and integrated nursery and childcare services," it added.

Rooting out corruption

Combating corruption is a key goal for the country, which has launched a drive to root out graft at all levels of the Chinese Communist Party and state since Xi came to power.

Li told cadres on Thursday that there was a need to intensify efforts to address Party misconduct, acknowledging that "corruption still occurs frequently in some sectors and localities".

"We will tighten regulation and oversight over the allocation and exercise of power... build integrity, and combat corruption in the government," the report said.

"Some officials have a misguided understanding of what it means to perform well; they lack drive, act arbitrarily, work for show, or just go through the motions in their work," it added.