BEIJING, March 5 — China is targeting economic growth of 4.5 to 5 per cent in 2026, with an emphasis on managing risks in the real estate sector and local government debt.
Premier of the State Council, Li Qiang, said the target was outlined as the world’s second-largest economy faces an increasingly complex external environment and domestic demand that requires further support.
“China aims to strengthen key sectors such as agriculture and rural development, boost innovation in strategic technologies including artificial intelligence, semiconductors, and next-generation communications such as 6G, and advance green and low-carbon initiatives to ensure stable and sustainable economic growth,” he said while presenting the Government Work Report at the annual session of the National People’s Congress in Beijing, on Thursday.
He added that China will pursue a more proactive fiscal policy, with a deficit estimated at around four per cent of Gross Domestic Product (GDP), alongside the issuance of special bonds to support strategic projects and increase domestic consumption.
Li said China also targets 12 million new urban jobs this year, with the urban unemployment rate expected to be around 5.5 per cent and inflation at about two per cent.
He stressed measures to stabilise the real estate sector, including controlling the supply of new projects, reducing unsold housing inventory, and increasing affordable housing, while ensuring delayed projects are completed.
“Local government debt management will be strengthened, including controlling hidden debt and systematically restructuring obligations to reduce financial risks.”
“Research and development spending will rise by at least seven per cent per year during the 15th Five-Year Plan (2026–2030), with a focus on strategic technologies, green development, and renewable energy,” he said.
The report also highlighted commitments to people’s well-being through stronger social security systems, better health and education services, and tackling demographic challenges, including an ageing population and low birth rate.
