China Says It Has Solid Foundation to Achieve 2026 GDP Growth Target

China has a strong foundation to meet its economic growth target for 2026, according to senior officials from the country’s top economic planning body. The announcement comes as policymakers outline a strategy focused on expanding domestic demand, boosting technological innovation, and deepening economic opening to global markets.

Speaking during a press conference held on the sidelines of the 14th National People’s Congress in Beijing, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), said China’s economy is expected to expand by more than 6 trillion yuan (approximately $869.6 billion) in 2026—an increase roughly equivalent to the annual GDP of a developed economy.

The announcement followed China’s decision to set a GDP growth target of between 4.5% and 5% for 2026, signaling cautious optimism as the world’s second-largest economy navigates global economic uncertainty.

Innovation and Industrial Development Seen as Key Growth Drivers

During the two-and-a-half-hour conference, five major Chinese economic authorities—including the NDRC, the Ministry of Finance of the People’s Republic of China, the Ministry of Commerce of the People’s Republic of China, the People’s Bank of China, and the China Securities Regulatory Commission—addressed questions from international media on the country’s economic strategy.

Zheng emphasized that China’s growth outlook is supported by three major pillars: the country’s large economic scale, its expanding innovation capacity, and its ability to respond to economic risks.

Technological innovation was a central theme of the discussion. Officials noted that China’s six emerging strategic industries are projected to surpass 10 trillion yuan in total value by 2030, reflecting the country’s push to strengthen advanced manufacturing and technology sectors.

To further support innovation, China plans to establish a national-level mergers and acquisitions (M&A) fund this year aimed at improving exit channels for venture capital investors and increasing capital circulation efficiency. The initiative is expected to mobilize more than 1 trillion yuan in investment from both public and private sources.

Domestic Consumption Remains a Strategic Priority

Another major focus of the conference was the expansion of domestic consumption, which policymakers see as a key pillar of long-term economic stability.

According to Wang Wentao, China’s Minister of Commerce, the country’s consumer market has become the largest in the world when measured by purchasing power parity during the 14th Five-Year Plan period (2021–2025).

Government policies aimed at boosting consumption include extending consumer goods trade-in programs, expanding service-sector opening, and stimulating economic activity in smaller cities and rural markets.

Fiscal policy is also expected to play a significant role in supporting economic growth. Finance Minister Lan Fo’an announced that the scale of new government bonds issued this year has reached 11.89 trillion yuan, representing one of the most significant fiscal expansions in recent years.

Officials say these measures are designed to boost domestic demand, stabilize economic growth, and support structural transformation across key industries.

China Signals Commitment to Global Trade and Market Opening

The conference also addressed China’s approach to international trade and global economic integration.

Officials reaffirmed plans to maintain stable foreign trade volumes while improving the structure of exports and imports. Wang compared international trade to “two wheels of a vehicle,” emphasizing that balanced growth between imports and exports would contribute to long-term economic stability.

Chinese policymakers also reiterated the country’s commitment to opening its domestic market to international investment.

“Markets are the scarcest resource in the world today,” Wang said during the conference. “As a responsible major country, China proactively opens its ultra-large market and views it as a platform for global cooperation.”

Economic Strategy Linked to Long-Term Development Plans

Analysts say the policy directions discussed at the conference reflect the broader objectives of China’s next development cycle.

According to Hu Qimu, deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, the strategy focuses on three key priorities: expanding domestic demand, advancing technological innovation, and deepening economic openness.

Together, these initiatives are expected to lay the foundation for the 15th Five-Year Plan period (2026–2030) while strengthening China’s long-term economic resilience.

International observers have also highlighted China’s long-term economic planning approach as a source of global stability.

Simon Lichtenberg, founder of Trayton Group and former chairman of the Danish Chamber of Commerce in China, noted that China’s multi-year development plans provide predictability for businesses and investors.

Similarly, John Quelch, executive vice chancellor at Duke Kunshan University, said China’s policies aimed at expanding market access for foreign investment—particularly in services and financial sectors—send an important signal supporting global trade and economic cooperation.

Original report: https://www.globaltimes.cn/page/202603/1356472.shtml