The Chinese government sets a range of 4.5% to 5% in order to have room to maneuver on policy throughout the year, and sets its sights on doing better than the targets.
China set an economic growth target of between 4.5% and 5% for this year on Thursday, slightly below the goals set in recent years, against a backdrop marked by a prolonged crisis in the real estate sector and external uncertainties.
The target was announced by Chinese premier Li Qiang during the presentation of the government work report at the opening session of the National People’s Congress (NPC), China’s highest legislative body.
The report sets the growth objective within that range, adding that the government will seek to “achieve better results in practice.”
“While we recognise our achievements, we are also fully aware of the difficulties and challenges we face,” the report states.
Over the past three years, Beijing had set growth targets of “around 5%.” In 2025, the Chinese economy expanded by 5%. By establishing a range of 4.5% to 5%, the government aims to give itself greater room to adjust economic policies throughout the year.
The document highlights increased geopolitical risks and notes that free trade is under serious threat. Chinese exports to the United States have been hit by tariffs imposed by US president Donald Trump, although China has expanded sales to other regions of the world.
On the domestic front, the report highlights a “pronounced” imbalance between strong supply and weak demand, as well as the challenge of transitioning the economy towards new growth engines.
“Domestically, we still face various problems and challenges, both old and new,” the document adds.
“In proposing these targets, we took into account the need to leave some room for structural adjustments, risk prevention and reforms in the first year of this five-year plan period, so as to lay a solid foundation for achieving better results in the years ahead,” the report states.
The NPC’s annual session, which brings together around 3,000 delegates and is considered the country’s main annual political event, is also expected to approve a five-year plan that will define China’s political and economic priorities through 2030.
The document also includes commitments to strengthen the domestic economy while advancing president Xi Jinping’s ambitions to transform China into a global leader in technology.
