China Slashes 2026 Growth Target to 35-Year Low

(MENAFN) China trimmed its annual economic growth target Thursday to a range of 4.5%–5% — the most conservative benchmark set by Beijing since 1991 — as the National People’s Congress (NPC) opened its annual session in the capital.

The revised figure marks a step back from the 5% growth China recorded over each of the past three years, reflecting mounting headwinds from global trade tensions and domestic structural pressures.

A government work report presented to the NPC outlined the country’s core 2026 development benchmarks: a surveyed urban unemployment rate of approximately 5.5%, the creation of more than 12 million new urban jobs, and a consumer price index increase of around 2%.

NPC Chairman and top lawmaker Zhao Leji formally declared open the fourth session of the 14th NPC, attended by more than 2,800 deputies representing the world’s second most populous nation. President Xi Jinping and Premier Li Qiang were among those present.

Delivering the government report to lawmakers, Li acknowledged that last year’s 5% expansion was achieved despite “emerging complex and volatile situations.” He referenced the drag from US tariff increases, but maintained that China “effectively cushioned downward economic pressure and ensured the fulfillment of major objectives for the year.”

On the year ahead, Li said the GDP growth target would be between 4.5% to 5% “while striving for better in practice” — a formulation that signals ambition even within a cautious framework. He pledged to stabilize the beleaguered real estate sector and address risks tied to local government debt.

Turning to technology, Li said China would accelerate its “AI Plus” initiative, fast-track the rollout of next-generation intelligent terminals and AI agents, and push for broad commercial deployment of artificial intelligence across key industries.

The session convened one day after the 14th Chinese People’s Political Consultative Conference (CPPCC) National Committee held its own annual meeting in Beijing. Together, the two gatherings — an annual tradition dating back to 1978 — are known globally as the “Two Sessions,” or Lianghui in China.

Also on the NPC agenda: the unveiling of China’s 15th Five-Year Plan, a sweeping policy blueprint mapping the country’s development priorities through 2030.

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