China targets GDP growth of 4.5% to 5%, vows to oppose 'hegemonism'

• Premier Li says China to ‘resolutely fight Taiwan separatist forces,' oppose 'hegemonism and power politics'

• China slows defense spending to 7%, allocates $275B in budget

ISTANBUL

China set its 2026 economic growth target at 4.5%-5%, slightly lower than the 5% achieved last year, as the National People’s Congress (NPC) convened Thursday in Beijing for its annual session.

According to a government report delivered to the NPC, the main targets for development include a surveyed urban unemployment rate of around 5.5%, over 12 million new urban jobs, and an increase in the consumer price index of around 2%.

China posted GDP growth of around 5% for the past three years.

The NPC also rolled out China's 15th Five-Year Plan among at least seven items on the agenda.

Top lawmaker and NPC Chairman Zhao Leji declared open the fourth session of the 14th NPC, which is being attended by 2,765 deputies from the world’s second-largest country by population.

"That’s the lowest attendance (2,765 deputies) count since at least 2000," according to Bloomberg.

President Xi Jinping and Premier Li Qiang are among the participants.

The NPC session opened a day after the 14th Chinese People's Political Consultative Conference (CPPCC) National Committee convened for its annual session in Beijing.

The parallel annual gatherings, held since 1978, are known internationally as the “Two Sessions,” or Lianghui in China.

At least seven items are on the agenda of the NPC, including a government report delivered by Li as well as the country’s 15th Five-Year Plan, which outlines development priorities for 2026-2030.

Li told lawmakers that the GDP of the world’s second largest economy grew at 5% last year despite "emerging complex and volatile situations."

He also noted the impact of US tariff hikes but said China "effectively cushioned downward economic pressure and ensured the fulfillment of major objectives for the year."

For the current year, Li said the GDP growth target would be between 4.5% to 5% "while striving for better in practice."

It marks the lowest target since 1991, when Beijing set a target of 4.5%.

Li also vowed to stabilize that real estate market as well as defuse local government debt risks.

On digital transformation, he said China will advance and expand its "AI Plus" initiative, promote the faster application of new-generation intelligent terminals and AI agents and encourage large-scale commercial application of AI in key sectors and fields.

Against 'hegemonism,' committed to '1992 Consensus'

Delivering the report, Li said China has pledged to "resolutely fight separatist forces aimed at Taiwan independence and oppose external interference."

He reaffirmed the commitment to the one-China principle and the "1992 Consensus."

"We will stay committed to an independent foreign policy of peace and to peaceful development," he said, adding that China "will expand our global network of partnerships, resolutely oppose hegemonism and power politics, and uphold international fairness and justice."

'Absolute leadership' over military

Li also vowed to “stay committed” to the ruling Chinese Communist Party’s “absolute leadership” over the People’s Armed Forces and “fully and thoroughly implement” the system of “ultimate responsibility” resting with Xi, who is the chairman of the Central Military Commission.

Beijing also slowed defense spending to 7%, with $275 billion allocated this year. Beijing had maintained 7.2% increase in defense in the last three years.

“We will continue to improve military political conduct and make major strides toward the centenary goals of the People’s Liberation Army (PLA),” Li said, pledging “solid gains in military training and combat readiness.”

The PLA will complete 100 years of its foundation next year, and Li’s pledge to maintain the CCP’s leadership over the PLA comes amid a widening “corruption” probe into Chinese military.

China’s largest gathering comes amid a raging conflict in the Middle East after the US and Israel launched a military campaign against Iran on Saturday, killing more than 900 people, including Iran’s Supreme Leader Ayatollah Ali Khamenei and 168 elementary schoolgirls, according to Iranian authorities.

Iran has retaliated with drone and missile attacks targeting US-linked sites in Gulf countries, causing many fatalities. Six US service members have been killed and several others injured.