AMAZINGLY, despite numerous regional irritants and global power obsessions the macro-economy of China remained stable, sustainable and diversified achieving its all targets and gearing towards quality development, modernization, digitalization, artificial intelligence, quantum and green technologies during 2025.

Moreover, its future prospects are healthy, productive and positive giving the message of its economic vibrance, qualitative industrialization, consolidation of new economic drivers (EVs, lithium batteries, green technologies) during its 15th Five Year Plan (2026-2030) instrumental for greater economic globalization and constructive international cooperation and competition. Additionally, the Chinese Premier Li Qiang keynote speech during the ongoing Two Session presenting the government work report (GWR) on behalf of the State Council at the opening meeting of the fourth session of the 14th National People’s Congress has become its road map for its economic achievements.

The salient features of the GWR consisting of review of work in 2025 indicating GDP grew by 5 percent, creation of 12.67 million urban jobs, increase of agriculture output to 715 million metric tons and last but not least further increase of new-energy vehicle output exceeded 16 million units vividly reflecting strong economic development in all sector ranging from production, manufacturing, industrial growth and agriculture during 2025 successfully negating any fall in China’s economic miracle. Thus, the GWR is holistic, comprehensive, integrated, productive, futuristic and innovative.

Evidently, GDP crossed successive thresholds, with an average annual growth of 5.4 percent has become a major highlight of the GWR. Manufacturing sector has led the world in value added for the past 16 years due to which despite western decoupling, delinking and wrong notion of overcapacity China is still rated as the factory of the world. Obviously, per capita disposable income increased at an average annual rate of 5.4 percent and creation of over 60 million urban jobs clearly demonstrates its immense social development further enhancing life standards of its people and communities alike during 2025. So, people’s friendly policy is the hallmark of the CPC economic policies during 2025.

On the other hand, the GWR also highlights main goals and major tasks for the 15th Five-Year Plan period (2026-2030) mainly GDP growing within an appropriate range, an annual average increase of at least 7 percent in nationwide R&D spending, a total reduction of 17 percent in carbon dioxide emissions per unit of GDP, raising the value added of core digital economy industries to 12.5 percent of GDP, raising the average years of schooling among the working-age population to 11.7, raising life expectancy to 80 years, increase in overall grain production capacity to 725 million metric tons and increase in overall energy production capacity to the equivalent of 5.8 billion metric tons of standard coal. Hence it is indeed a border road map of the economic journey of China covering all possible means for achieving the desired goals of a qualitative life during 2026 and beyond showing an ideal combination of socio-economic growth transforming enterprises and communities alike.

Furthermore, the GWR pinpoints overall requirements and policy orientation for economic and social development in 2026, targeting GDP growth of 4.5–5 percent while striving for better in practice, creating over 12 million new urban jobs, keeping CPI increase around 2 percent, achieving grain output of around 700 million metric tons and reducing carbon dioxide emissions per unit of GDP by about 3.8 percent. The deficit-to-GDP ratio is set at around 4 percent, with public budget expenditure projected to reach 30 trillion yuan for the first time, alongside 1.3 trillion yuan in ultra-long special treasury bonds and 4.4 trillion yuan in local government bonds, reflecting the economic prudence of policymakers in promoting green orientation, food security, social protection and better financial management. Moreover, the GWR outlines a comprehensive income growth plan for urban and rural residents, emphasizing higher earnings for low-income groups, increased property income and improved remuneration and social security systems to help narrow the urban–rural income gap and strengthen domestic demand, supported by 250 billion yuan in ultra-long special treasury bonds allocated for consumer goods trade-in programs.

The GWR also announced to further increase volumes of investment of the central government hence a total of 755 billion Yuan will be earmarked in this year’s central government budget for investment. China will also allocate 800 billion yuan raised from ultra-long special treasury bonds to implement major national strategies and enhance security capacity in key areas. In summary, China’s GWR has pinpointed key strategies during 2026 including further consolidation of domestic demand and consumption, investments, further development of emerging key industries mainly integrated circuits, aviation and aerospace, biomedicine and the low-altitude economy.

The GWR indicates greater focus on fostering future industries such as future energy, quantum technology, embodied intelligence, brain-computer interfaces and 6G, while advancing and expanding the “AI Plus” initiative. It also envisions formation of a unified national market through production regulation, standards guidance, price law enforcement and quality supervision. Moreover, further opening up in value-added telecom services, biotechnology and wholly foreign-owned hospitals, along with integrated rural revitalization through extending rural land contracts by another 30 years, conducting the fourth national agricultural census and implementing a new urbanization strategy, will support job creation, improvements in education, expansion of health care and social security, green development and resolution of real estate challenges, collectively strengthening China’s macro-economy to achieve its development targets in 2026 and beyond.

—The writer is President, the Centre for Knowledge and Public Policy, Regional Expert: China, CPEC, BRI & World Affairs.

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