On March 5, 2026, Chinese Premier Li Qiang presented the annual Report on the Work of the Government at the opening of the Fourth Session of the 14th National People’s Congress (NPC) in Beijing’s Great Hall of the People. The report was presented under the leadership of President Xi Jinping and other senior officials. In this session, officials reviewed the successful conclusion of the 14th Five-Year Plan (2021–2025), introduced the draft outline for the 15th Five-Year Plan (2026–2030), and outlined priorities and targets for 2026.
Despite a complex global environment marked by uncertainties, trade frictions, and geopolitical tensions, as well as domestic structural challenges, the report presented a balanced tone. It acknowledged difficulties while emphasizing China’s institutional strengths, economic resilience, and long-term potential for high-quality development.
Robust Finish to the 14th Five-Year Plan in 2025
Premier Li described 2025 as a “truly remarkable” year. Despite profound challenges at home and abroad, China met or exceeded the main goals and tasks for economic and social development. Gross Domestic Product (GDP) expanded by 5% and reached approximately 140.19 trillion yuan (about $20.28 trillion). Moreover, 12.67 million new urban jobs were created, contributing to over 60 million urban jobs added across the entire 14th Five-Year Plan period. Similarly, grain production hit 715 million metric tons bolstered food security.
Notable advances were made in new-energy vehicles, high-tech sectors, core technology innovation, and supply chain resilience. All 20 major targets, 17 strategic tasks, and 102 major projects outlined in the 14th Five-Year Plan were successfully accomplished, laying a solid foundation for the next phase.
Presentation of the 15th Five-Year Plan (2026–2030)
A fundamental highlight of the report was the submission of the draft Outline of the 15th Five-Year Plan for National Economic and Social Development (2026–2030) for NPC review. Unlike previous plans, it avoids a fixed multi-year GDP growth target, instead aiming to maintain growth within an appropriate range determined annually based on conditions. This flexibility supports the broader ambition of doubling 2020 per capita GDP by 2035 to reach moderately developed-country levels.
Key long-term priorities include
Accelerating the development of new quality productive forces through innovation.
Achieving an annual average increase of at least 7% in nationwide R&D spending.
Reducing CO₂ emissions per unit of GDP by a total of 17% over the five years.
Raising the value added of core digital economy industries to 12.5% of GDP.
Extending life expectancy to 80 years.
Strengthening food and energy security, building a unified national market, and promoting green, innovation-driven growth.
2026 Targets Depict Proactive and Sensible Approach
As the first year of the 15th Five-Year Plan, 2026 underlines a good start with more proactive macro policies, front-loaded effects, and a focus on stability, domestic demand, and risk prevention. The main projected targets for 2026 are as follows.
GDP growth 4.5–5%, while striving for better outcomes in practice. This is the lowest formal target since 1991, reflecting caution amid external pressures and the need for structural adjustments.
The surveyed urban unemployment rate is estimated at around 5.5%.
Production of new urban jobs is over 12 million.
The estimated Consumer Price Index (CPI) is expected to increase around 2% to support a modest rebound in prices and a virtuous economic cycle.
Grain output is estimated at around 700 million metric tons.
Reduction of CO₂ emissions per unit of GDP of around 3.8%.
Personal income growth in step with economic growth; basic equilibrium in the balance of payments.
Fiscal policy will be more proactive, with the deficit-to-GDP ratio set at around 4% and general public budget expenditure projected to reach 30 trillion yuan for the first time. Monetary policy will remain supportive, coordinated with fiscal measures to boost market vitality.
Policy Focus Areas for 2026
The report prioritizes several key domains like employment and livelihoods, Innovation and high-quality development, domestic demand and consumption, green and secure development, social welfare, and defense and security.
Priority will be given to the employment and livelihoods sector to provide stronger support for youth, college graduates, migrant workers, ex-service members, and those in flexible/new forms of employment; enhanced startup policies, including loan interest subsidies; and adaptation to AI-driven changes.
Social welfare spending is expected to exceed 4% of GDP, alongside improvements in social security and efforts to build a “childbirth-friendly society” to address demographic challenges
For faster cultivation of new productive forces, breakthroughs in core technologies, industrial upgrades, and AI integration, the government of China will focus on Innovation and high-quality development
By focusing on domestic demand and consumption, they will expand effective demand, stabilise real estate and stock markets, and prevent and resolve risks in finance and local government debt. Besides, ecological progress, food, energy security, and national security will be advanced through green and secure development.
Furthermore, defense and security priorities include continued military modernization, with defense spending expected to increase by around 7%.
Premier Li stressed the need for forward-looking, targeted, and coordinated policies under the strong leadership of the Communist Party of China Central Committee with Comrade Xi Jinping at its core. The report calls for upholding the new development philosophy, pursuing progress while ensuring stability, and balancing development with security.
Overall, the 2026 Government Work Report signals a shift toward more sustainable, resilient growth. It is prioritizing quality over speed, innovation over scale, and domestic strength amid global uncertainties. As deliberations continue at the NPC and the Chinese People’s Political Consultative Conference (CPPCC), these priorities will shape China’s trajectory through the end of the
