March 5 (Reuters) – China’s political elite gathered in Beijing on Thursday as President Xi Jinping unveiled a sweeping roadmap for the country’s economic and political future, delivered against a backdrop of sharpening tech competition with Washington and mounting geopolitical friction.
The National People’s Congress, China’s rubber‑stamp legislature, rolled out its Five‑Year Plan outlining goals for growth, budgets, industrial policy and defence – signalling Xi’s determination to propel the world’s second-biggest economy toward technological dominance.
Here are the main highlights from the NPC:
GDP, BUDGET PRIORITIES
China is looking to grow its economy at a 4.5%-5% pace, a touch below the 5% rate achieved last year, opening the door to greater efforts to curb industrial overcapacity and rebalance the economy.
Beijing also plans steady stimulus to rev-up an economy stuck in a lower post-pandemic gear, setting a budget deficit of 4.0% of gross domestic product, similar to last year.
HIGH-TECH DRIVE AS US RIVALRY SHARPENS
Aiming for technological supremacy amid a fierce rivalry with the U.S., Beijing is accelerating efforts to achieve greater tech self-reliance, saying it is now the world leader in R&D for artificial intelligence and other key fields such as quantum technology.
DEFENCE CAPACITY
China will improve combat readiness and accelerate the development of “advanced combat capabilities”, Premier Li Qiang said, boosting defence spending by 7% in 2026.
Analysts and military attachés are watching closely as Beijing pushes to modernise its forces by 2035, while it deepens an anti-graft purge of senior officers amid the backdrop of rising regional tensions, including over Taiwan.
FINANCIAL SYSTEM
China will inject 300 billion yuan ($43.59 billion) into state-owned banks this year and deepen reforms of state-owned financial enterprises, stepping up efforts to bolster its financial system as the nation grapples with a prolonged property crisis and deflationary pressure.
POPULATION
Beijing pledged to build a “childbirth-friendly society” in the next five years, aiming to address concerns over employment, education, medical care, health and income. An ageing and rapidly shrinking population complicate Beijing’s plan to boost domestic consumption and rein in debt.
FOOD SECURITY
China aims to raise grain production capacity to around 725 million metric tons over 2026-2030 as Beijing steps up efforts to meet its long-term food security objectives. The nation is heavily reliant on imports of key agricultural products such as soybeans, with the U.S. its second-largest supplier.
(Reporting by China buro.Compiled by Shri Navaratnam)
