China sets a lower economic growth target of 4.5% to 5% for 2026 as challenges loom

China has signaled continuity rather than change for its economy, setting a slightly lower target for growth this year in the midst of a property slump and other headwinds at home and growing uncertainty abroad. Premier Li Qiang announced a target of 4.5% to 5% annual growth in his report presented to the opening session of this year’s meeting of the National People’s Congress. That compares to actual 5% growth last year and a target of about 5% in the three years before. It’s the lowest growth target since 1991.

“While recognizing our achievements, we are also clear-eyed about the difficulties and challenges we face,” Li said, reading much of the 35-page report in a more than hourlong address.

“GDP targets in recent years have become less important than before because the overarching, and most important political priority has shifted from promoting economic development to so-called ‘high-quality development,’” said Xin Sun, a senior lecturer in Chinese and East Asian business at King’s College London.Experts say the lower target is in line with longer-term goals that are less focused on high growth rates.

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