From March 4–11, 2026, the annual meetings of the Chinese People's Political Consultative Conference (中国人民政治协商会议) were held—the advisory body of the parliament, which includes representatives of the Communist Party of China, eight other political parties, non-partisan activists, social, cultural, and religious organizations, trade unions, and ethnic minorities. It is worth emphasizing: China is a multi-party country, although the CPC plays a leading role in it.
From March 5 to 12, the National People's Congress of the People's Republic of China (中华人民共和国全国人民代表大会) — the Chinese parliament — convened. Both bodies, comprising nearly 5,000 delegates, are key institutions of the Chinese political system, and their annual meetings — known as the "Two Sessions" (两会) — constitute the most important event of the year in the country's political and economic life.
During this year's meetings, not only were reports on the implementation of last year's plans and budget reports adopted, but above all, the most important planning documents: the 2026 socio-economic plan, the fifteenth five-year plan for 2026–2030, and the long-term reform directions up to 2035. This marks the opening of another phase of transformation of the Chinese economy.
Economic Goals for 2026
The government has set the following main indicators for the current year:
- Economic growth: approx. 4.5–5% — a cautious level, similar to the results of the last three years
- Urban unemployment: 5.5% with a plan to create over 12 million new jobs
- Inflation: 2% — the lowest target since 2005
- Growth of disposable income per capita at a rate similar to GDP growth
- Budget deficit: 4% of GDP
- Defense spending: increase by 7% (1.5% of GDP, slightly less than in 2025)
In the fiscal sphere, total public expenditures will exceed 30 trillion RMB. New government bonds will reach 1.189 trillion RMB, and transfers from the center to local governments will exceed 10 trillion RMB for the fourth consecutive year. Investments from central funds will exceed 7 trillion RMB, and spending on science and technology will increase by over 7%. At the same time, a reduction of the so-called "three public costs" (official travel, receptions, and official cars) by over 7% was announced.
These assumptions reflect a deeper change in the development philosophy: the priority is becoming the quality of growth, not just its pace.
Twelve Priorities
The government report indicates twelve main areas of action:
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Increase in population income
- Reforms of wage systems and social security are planned, with a particular emphasis on supporting low-income households.
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Stimulating domestic consumption
- About 250 billion yuan from the issuance of special bonds has been allocated to programs stimulating domestic demand, including a system of consumption vouchers.
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Infrastructure investments
- Hundreds of billions of yuan will go to infrastructure projects and the development of public services.
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New strategic sectors
- Priority is given to: semiconductors, aviation, biopharmaceuticals, and the low-altitude economy. At the same time, future technologies will be developed: new generation energy, quantum computing, brain-computer interfaces, and 6G networks.
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Unified domestic market
- A key goal is the elimination of administrative barriers between regions that hinder the free flow of capital, goods, and services.
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Opening to foreign investment
- The planned expansion of pilot programs will include value-added telecommunications, biotechnology, and private healthcare.
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Revitalization of rural areas and new urbanization
- Migration from rural to urban areas is to be gradually accelerated while expanding access to public services.
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Employment policy
- The authorities announce support for growth models conducive to creating new jobs and increasing employment levels.
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Education
- An increase in the number of places in high schools and the development of a free preschool education system are planned.
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Ecological transformation
- A national low-emission transformation fund will be established; financing for hydrogen technologies and ecological fuels will be accelerated.
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Stabilization of the real estate market
- The principle of "one city, one policy" will be maintained, adapting regulatory interventions to local market conditions.
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Combating "involution" in the economy
- The term "involution" appears in the documents — describing exhausting, excessive competition that leads to the erosion of margins and chronic overproduction. In response, strengthening the enforcement of anti-monopoly law and fair competition regulations is announced, as well as the implementation of four instruments: control of production capacities, industry standards, price supervision, and quality control.
The Fifteenth Five-Year Plan (2026–2030)
The year 2026 marks the beginning of the implementation of the fifteenth five-year plan — a document outlining development directions until 2030. It is crucial for achieving the strategic goal: reaching a per capita income level corresponding to moderately prosperous countries by 2035.
The plan emphasizes the construction of a modern industrial system and strengthening the real economy as conditions for further modernization in the face of increasing technological rivalry.
More Active Macroeconomic Policy
The documents emphasize the need for a proactive fiscal policy and flexible monetary policy — as guarantees of stability in conditions of global uncertainty. One of the pillars of growth will also be increasing domestic consumption, which means a gradual shift away from a model based mainly on exports and infrastructure investments.
"Investing in People"
A new element of the strategy is the concept of "investing in people": infrastructure and technological projects are to be evaluated not only in terms of economic efficiency but also in terms of their impact on the quality of life. In other words — economic growth is to translate into a real improvement in access to education, healthcare, and public services.
Artificial Intelligence as a Development Engine
A special place is occupied by the "AI Plus" strategy — the integration of artificial intelligence with industrial production, agriculture, public services, and city management. The goal is to create new "productive forces" that will drive modernization. The plan assumes 70% utilization of AI in the Chinese economy by 2027 and 90% by 2030. The value of sectors related to artificial intelligence is to exceed 10 trillion RMB.
Robotics and Future Technologies
Humanoid robotics has been identified as a key pillar of industry — with a planned doubling of production within five years. The plan also includes the creation of quantum communication networks between space and Earth, schedules for nuclear fusion research, and the development of brain-computer interfaces.
Reform of Innovation Financing
Capital markets are to play a greater role in financing technology and technologically advanced enterprises. This is part of a broader strategy to strengthen technological self-sufficiency — primarily in the field of semiconductors and quantum technologies. The documents also provide for "extraordinary measures" to become independent from the import of rare earth elements.
Towards a Smart Economy
Both the annual economic plan and the new five-year plan indicate a clear change in paradigm. The previous model — based on rapid production growth and infrastructure investments — is giving way to a strategy focused on:
- technological innovations,
- resilience to external shocks,
- quality of growth,
- improving the standard of living for society.
The target model is a smart economy, where digital technologies, artificial intelligence, and automation permeate all sectors. This transformation is to create new sources of growth, new business models, and new jobs — while simultaneously taking actions to protect employment in the face of rapid automation progress.
The decisions made during this year's "Two Sessions" confirm that China is entering a new phase of its development. Economic growth remains important, but increasing emphasis is placed on its stability, innovation, and social effects. In the face of increasing global technological rivalry, the country is focusing on building resilience and self-sufficiency — while declaring that the stated goal is a stable, modern, and moderately prosperous life for every citizen.
Transforming China into an economy based on advanced technologies and artificial intelligence is a huge challenge. However, the pace of changes so far shows that the country has both the resources and the determination necessary for the consistent implementation of a long-term modernization strategy — a strategy that, as the world's second economy, also sets the directions for global development.
Sources
- Government Work Report: Variability and Continuity
- Two Sessions: Government Announces Key Development Goals for 2026
- Global Community Assesses China's Economic Goals as Rational and Evidence of Striving for High-Quality Development
- National Two Sessions 2026
- Strengthening Foundations and Developing the Real Economy