China charts new growth path as 'Two Sessions' launch 15th Five-Year Plan era

BEIJING: China signalled a new phase in its economic strategy as the country’s top legislature convened its annual session on Thursday, marking the first year of the 15th Five-Year Plan period.

The fourth session of the National People's Congress (NPC) opened at the Great Hall of the People, a day after the annual meeting of the Chinese People's Political Consultative Conference began in Beijing—together forming the country’s widely watched “Two Sessions."

Presenting the government work report, Chinese Premier Li Qiang announced that China is targeting economic growth of 4.5 to 5 percent in 2026, while expressing confidence that actual performance could surpass expectations.

“The conditions underpinning China’s long-term growth and its underlying trend remain unchanged,” Li said, adding that the country’s institutional strengths and scale as a major economy continue to support development.

He called for stronger efforts to harness China’s economic advantages while addressing challenges such as rising geopolitical tensions, weak global growth and pressures on multilateral trade systems.

Strong foundation for the next development phase

China’s new planning cycle begins after the completion of the 14th Five-Year Plan, during which the country achieved steady economic expansion and technological advances.

According to the government report, China’s economy grew 5 percent in 2025, demonstrating resilience despite global economic headwinds. The country’s economic output exceeded 140 trillion yuan (about $20.2 trillion) for the first time.

Over the past five years, China maintained an average annual GDP growth of 5.4 percent, well above the global average.

Significant progress was also recorded in innovation-driven sectors including artificial intelligence, robotics, biomedicine and quantum technology, with national research and development spending rising by an average of 10 percent annually.

Analysts say China’s development model—characterized by long-term planning and coordinated industrial policies—has helped accelerate technological deployment across key sectors such as manufacturing, energy, healthcare, and logistics.

Global opportunities from China’s growth

China’s economic performance continues to carry significant weight globally. In 2025 alone, the country contributed roughly 30 percent of global economic growth.

As the world’s second-largest economy, China now accounts for about one-sixth of global GDP and remains a major trading partner for more than 150 countries and regions.

The draft outline of the 15th Five-Year Plan, submitted to lawmakers for review, aims to maintain stable growth over the next five years while laying the groundwork for doubling China’s 2020 per capita GDP by 2035, enabling the country to reach the level of a moderately developed economy.

To support these goals, China has proposed 109 major national projects spanning six key areas, including the development of new productive forces, industrial upgrading and improvements in public welfare.

Beijing also pledged to further expand economic opening, enhance foreign trade and investment cooperation, and advance the high-quality development of the Belt and Road Initiative.

The government said it would broaden market access—particularly in the services sector—while continuing to engage in reforms within the World Trade Organization to support an open global economy.

Geo-strategic analyst Imran Khalid described the 2026 “Two Sessions” as a “watershed moment” for the global economy.

As China shifts toward a more consumption-driven growth model, he noted, the country is becoming an increasingly important partner for developing nations in areas such as digital infrastructure and green energy.

“A stable China,” Khalid wrote, “is a necessary anchor for a global economy searching for a new engine of growth.”