Beijing laid out a list of priorities for the economy, innovation and the military for this year at the opening session of the National People’s Congress (NPC) at the Great Hall of the People on Thursday.
Here are the major takeaways from this year’s government work report and budget report:
Major targets for 2026
Gross domestic product growth of 4.5-5 per cent
A consumer price index increase of around 2 per cent
A fiscal budget deficit of around 4 per cent of GDP
Addition of 12 million new urban jobs
A 7 per cent increase in the defence budget
Research and development spending to grow by 10 per cent
Economic resilience and the private sector
This year’s GDP growth target confirmed an earlier report by the South China Morning Post. It marks the first formal downgrade since 2023 and is the least ambitious expansion goal since 1991.
Li said the government would roll out new measures to support the private sector, protect its legitimate interests, and support the young generation of entrepreneurs.
Focus on future industries
Beijing will foster and strengthen emerging and future industries in 2026, with special attention on energy, quantum technology, embodied artificial intelligence, brain- computer interfaces and 6G technology.
The five-year plan
China aims to keep annual GDP growth within “an appropriate range” in the 2026-2030 period under the 15th five-year plan.
Key to this will be increasing nationwide research and development spending by at least 7 per cent annually in the five years leading up to 2030.
This reflects Beijing’s priority on building “high-level technological self-reliance” at a time when China is seeking to reduce dependence on overseas advanced technologies.
Military budget rises
China will increase military spending by 7 per cent this year, bringing the total to around 1.91 trillion yuan (US$277 billion).
The percentage rise is lower than last year’s 7.2 per cent increase and is the slowest increase since 2021.
In a reference to anti-corruption efforts, Li reaffirmed the Communist Party’s “absolute leadership” over the military, and said that “political rectification” of the military would “continue to deepen”.
Since last year, several senior military figures, including top generals Zhang Youxia and Liu Zhenli, have come under investigation in the sweeping anti-corruption campaign.
Warnings on headwinds
Li called for vigilance amid deepening geopolitical risks, weak economic momentum abroad and strains on multilateralism and free trade.
At home, Li warned that “long-standing problems and new challenges persist” in the country’s economic development and transformation.
That includes a “pronounced” imbalance between supply and demand, “subdued” market expectations and “significant” risks in key sectors.
Strong words on Taiwan
Li said Beijing would “resolutely” crack down against separatist forces aimed at “Taiwan independence”, and stand firm in opposing external interference.
Li also repeated support for patriots governing Hong Kong and Macau, and pledged to ensure that the two special administrative regions would be “more effectively governed in accordance with law”. -- SOUTH CHINA MORNING POST
