Highlights from China’s 2026 Government Work Report

During the opening of the third session of the National People's Congress (14th NPC) in Beijing on 5 March 2026, Chinese Premier Li Qiang presented the Government Work Report, outlining the country’s key economic objectives for 2026.

According to the report, China has set a GDP growth target of between 4.5 and 5 per cent for 2026, revising last year’s goal as the world’s second-largest economy places greater emphasis on stimulating domestic demand through strengthened policy support. In 2025, China’s GDP grew by 5 per cent, reaching USD 20.4 trillion for the first time. The government will intensify efforts to boost consumer spending by introducing policies aimed at strengthening household purchasing power and encouraging consumption-driven growth. The report projects consumer price inflation at around 2 per cent, alongside measures intended to increase personal income.

The deficit-to-GDP ratio is set to remain at 4 per cent in 2026, allowing for higher levels of public spending. To support this expansion, the government plans to issue ultra-long special treasury bonds, local government special bonds, and special sovereign bonds, amounting to nearly RMB 12 trillion in fiscal expansion.

Public expenditure is projected to reach USD 4.17 trillion for the first time in 2026. China will also continue to implement an accommodative monetary policy, including reductions in reserve requirement ratios and interest rates. At the same time, the country will accelerate efforts to strengthen self-reliance in science and technology, promoting development in areas such as the energy sector, quantum technology, artificial intelligence, and 6G communications. The government will also support the silver economy as part of broader initiatives to address the challenges of an ageing population.

Employment remains a major priority. China aims to create more than 12 million new urban jobs in 2026, while maintaining the urban unemployment rate at around 5.5 per cent.

Foreign businesses are also expected to benefit from expanded policy support. China plans to further advance its opening-up policies, expanding market access and attracting investment across a wider range of sectors, particularly in services. The government intends to strengthen two-way investment cooperation by deepening reforms to the institutional framework for promoting foreign investment and ensuring national treatment for foreign-funded enterprises. Opening-up measures will be extended to sectors such as telecommunications services, biotechnology, and wholly foreign-owned hospitals, according to the report.

During the presentation of the Government Work Report, Premier Li Qiang also noted that the State Council of the People's Republic of China has drafted the Outline of the People’s Republic of China’s 15th Five-Year Plan for National Economic and Social Development, which has been submitted to the session for review. The document is expected to set the strategic direction for China’s economic and social development over the next five years.