Takeaways from Chinese Premier Li Qiang’s government work report

SCMP | March 4, 2026, 10:22 p.m. | Original

Li raises the curtain on the annual session of the National People’s Congress with a series of targets for the economy

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Chinese Premier Li Qiang opens the annual session of the National People’s Congress by delivering the government’s work report. Photo: AFP

Here are the major takeaways from this year’s government work report and budget report:

Major targets for 2026

  • Gross domestic product growth of 4.5-5 per cent

  • A consumer price index increase of around 2 per cent

  • A fiscal budget deficit of around 4 per cent of GDP

  • Addition of 12 million new urban jobs

  • A 7 per cent increase in the defence budget

  • Research and development spending to grow by 10 per cent

Economic resilience and the private sector

This year’s GDP growth target confirmed an earlier report by the SCMP . It marks the first formal downgrade since 2023 and is the least ambitious expansion goal since 1991.

Li said the government would roll out new measures to support the private sector, protect its legitimate interests, and support the young generation of entrepreneurs.

Focus on future industries

Beijing will foster and strengthen emerging and future industries in 2026, with special attention on energy, quantum technology , embodied artificial intelligence, brain- computer interfaces and 6G technology .

The five-year plan

China aims to keep annual GDP growth within “an appropriate range” in the 2026-2030 period under the 15th five-year plan.

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