According to a report by China Daily on March 5…
China has set its economic growth target for 2026 at around 4.5 to 5 percent, signaling a pragmatic approach to sustaining expansion while continuing structural reforms.
The target was announced by Premier Li Qiang in the government work report delivered at the opening of the annual session of the National People’s Congress in Beijing on Thursday.
According to the report, the growth objective is aligned with the country’s long-term development strategy through 2035 and reflects China’s underlying economic potential amid a complex global environment.
Balancing Growth and Structural Reform
Li said the target allows room for economic restructuring, risk prevention and reform as China enters the first year of the 15th Five-Year Plan period.
Local governments are expected to pursue growth in line with their own economic conditions while ensuring stability and sustainable development, he said.
Economists say the target reflects a balanced policy approach as China navigates both cyclical pressures and longer-term structural changes.
Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research, said the growth range is both “reasonable and necessary”.
To achieve China’s goal of doubling per capita GDP from its 2020 level by 2035, the economy would need to expand at roughly 4.2 percent annually in the coming years, he said.
New Growth Drivers Emerging
Analysts noted that the modest adjustment of the growth target does not signal weakening economic momentum. Instead, it reflects a transition in China’s growth model.
Traditional drivers such as the property sector and demographic expansion are gradually fading, while new engines are gaining importance. These include rising household consumption, innovation-led productivity gains and the continued expansion of the services sector.
Macro policy support is expected to remain in place to stabilize growth, with economists anticipating stronger consumption and a potential rebound in investment.
Reform and Consumption Seen as Key
International observers also see significant room for expansion as China deepens structural reforms.
Marshall Mills, senior resident representative in China for the International Monetary Fund, said the country still has considerable growth potential.
According to Mills, China’s high household savings rate suggests strong room for consumption to become a more powerful driver of economic growth. At the same time, reforms aimed at improving resource allocation could help translate technological innovation into productivity gains across a broader range of industries.
As China embarks on the new five-year planning cycle, policymakers are expected to focus on balancing steady growth with structural transformation — a shift that could reshape the world’s second-largest economy in the years ahead.