Li Qiang on Economic Growth
TL;DR
Li Qiang’s administration set a pragmatic and historically low GDP growth target for 2026 amid a significant economic slowdown.
Key Points
He unveiled an economic growth target of 4.5% to 5% for 2026 at the National People's Congress.
The premier stated that the 2025 economic performance was 'truly remarkable' despite a 'grave and complex landscape.'
China's five-year plan includes a goal to reduce carbon emissions per unit of GDP by 17% by 2030.
Summary
Li Qiang, the Chinese Premier, announced a target of 4.5 to 5 percent gross domestic product (GDP) growth for 2026 during the opening of the National People's Congress. This figure represents the lowest official target set since 1991, reflecting a shift towards more conservative economic expectations as the nation grapples with a slowdown. The government work report he presented indicated that the lower figure is a conscious move away from a 'number-first' mindset toward 'quality-first' growth, prioritizing tangible economic results like household income improvement over high rates that might encourage data exaggeration or white elephant projects.
The setting of this lower target comes as China faces several structural economic challenges, including a prolonged slump in its property sector, weak consumer confidence, and high youth unemployment. His report also highlighted the strategic transition from an economy driven by manufacturing and exports to one focused on consumption and cutting-edge technology, aiming for greater industrial self-reliance. Furthermore, the five-year plan released alongside the announcement emphasizes boosting consumption and enhancing innovation as key priorities for 2026 to 2030.
Key Quotes
“What we achieved in 2025 was indeed hard won,”
Frequently Asked Questions
Li Qiang’s position centers on setting pragmatic, achievable economic targets that prioritize 'high-quality growth' over sheer numbers. He announced a historically low 2026 GDP target of 4.5 to 5 percent, signaling an acceptance of a slower rate given current domestic challenges. This approach favors structural reform, domestic consumption, and technological advancement over old drivers like construction.
The Chinese Premier announced an economic growth target for 2026 to be in the range of 4.5 percent to 5 percent. This figure is the lowest official target set by the government since 1991. This reflects a pragmatic adjustment due to headwinds like the property sector slump and weak domestic demand.
The lower growth target was influenced by the country's ongoing economic slowdown, particularly the significant issues within the property sector. He also cited complex domestic and external developments affecting the economy. Consequently, the focus is shifting to long-term structural reform and self-reliance in advanced technology.
Sources4
China economic growth target set below 5% for the first time at key meeting
China sets lowest GDP growth target for decades as it braces for economic slowdown
Key takeaways from China's new 5-year economic blueprint and growth target
China sets lowest economic growth target in decades at annual meeting
* This is not an exhaustive list of sources.