China slows down: government announces new economic growth target
6 March 16:40
The Chinese government forecasts economic growth of 4.5–5% in 2026, which could be the lowest figure in more than three decades. This was reported by Fortune, according to "Komersant Ukrainian".
Prime Minister Li Qiang announced the new economic target during a meeting of the National People’s Congress of China, the country’s main legislative body.
Why the forecast was lowered
In previous years, the government consistently set a target of around 5% economic growth and, as a rule, achieved it. However, the authorities are now signaling a change in economic policy priorities.
According to experts, the Chinese leadership is increasingly moving away from a focus on rapid growth and is betting on so-called “high-quality development.”
Xing Sun, a lecturer in Chinese and East Asian business at King’s College London, notes that GDP figures now have less political significance than before. According to him, the main priority for the authorities is not the amount of economic growth, but its structure and sustainability.
New economic priorities
The country’s leadership is seeking to address several strategic challenges simultaneously. On the one hand, the government wants to stimulate domestic consumption to revive the economy.
On the other hand, the authorities are promoting the technological modernization of the country. Chinese leader Xi Jinping has set the goal of transforming the country into a world leader in the fields of artificial intelligence, robotics, and advanced electronics.
Signs of an economic slowdown
Economic difficulties became apparent at the end of 2025. Although the country formally achieved its 5% growth target, a number of key indicators showed weakness.
Investment declined, retail sales growth fell to its lowest level outside of the pandemic period, and housing prices continued to fall amid a protracted crisis in the real estate market.
