Beijing, March 5 China announced a GDP growth target of 4.5 to 5 percent for this year, facing challenges from Trump's trade tariffs, the global crisis following the US-Iran war, and economic issues at home, including a slump in the property market and high unemployment.
Premier Li Qiang announced this target during his presentation to the National People's Congress (NPC), the country's parliament, which opened on Thursday.
China has aimed for a 5 percent GDP growth for the past three years amid growing domestic economic challenges. This year, the target is lowered to 4.5 to 5 percent for the first time.
China's economy grew by 5 percent last year, reaching USD 20.01 trillion, despite US tariffs, while domestic consumption remained sluggish.
The opening session on Thursday was attended by President Xi Jinping and over 2,000 delegates.
Li stated that the government aims for 4.5 to 5 percent economic growth this year and will strive to achieve this.
Key development targets include an urban unemployment rate of around 5.5 percent, the creation of over 12 million new urban jobs, and a consumer price index increase of around 2 percent.
Li also mentioned growth in personal income in line with economic growth, a balanced balance of payments, stable grain output of around 700 million tonnes, and a reduction of around 3.8 percent in carbon dioxide emissions per unit of gross domestic product.
Regarding domestic demand, which has been stagnant, Li stated that China will actively boost consumption and implement an income growth plan for urban and rural residents.
The country will launch special initiatives to boost consumption, including measures to increase the earnings of low-income groups, improve property income, and refine remuneration and social security systems in 2026.
A total of 250 billion yuan (USD 36.17 billion) will be allocated to consumer goods trade-in programs, and a special fiscal-financial coordination fund of 100 billion yuan will be created to facilitate domestic demand expansion, he said.
China commenced its annual parliament session on Wednesday amid international turmoil over the US-Iran war, massive military purges carried out by Xi, and ambitious plans to develop new productive forces like AI to revitalize the slowing economy.
Xi, 72, who is in his unprecedented third term, with little indication of any organized political challenge from within the ruling Communist Party and the powerful military, attended the opening session of the national advisory body of the Chinese People's Political Consultative Conference (CPPCC) on Wednesday, comprising over 2,500 civil society, party, and military officials.
He also attended the NPC opening session on Thursday, flanked by the top leadership of the ruling Communist Party of China (CPC).
These two sessions marked the beginning of a fortnight-long China's annual political season, during which the leadership appears in public and participates in internal debates.
Xi's presence was significant as he appeared for the first time along with party officials of all ranks, besides PLA members, and sat through the proceedings after the recent massive purges of the Chinese military.
In his work report, Li also outlined plans to boost elderly care services, given the country's fast-aging population.
The number of people aged 60 and above reached nearly 323.4 million by the end of last year, up by 13.07 million from 2024, according to data from China’s National Bureau of Statistics.
Li said China plans to expand the supply of elderly care services, develop human resources among seniors, and vigorously cultivate the silver economy this year as part of efforts to tackle an aging society.
Elderly care service vouchers will be granted to seniors with moderate or severe functional impairments, he said.
Li’s work report also highlights a series of fertility-friendly measures, such as fostering positive attitudes toward marriage and childbearing, boosting housing support for first-time married couples and those with their first child, and helping families with children meet their needs for better housing, in response to falling birth rates.
Li also said China will open wider to the outside world. Efforts will be made to expand market access and open up more areas, particularly in the service sector, the report said.
Also, China will advance and expand its "AI Plus" initiative, promote faster application of new-generation intelligent terminals and AI agents, and encourage large-scale commercial application of AI in key sectors and fields, Li said.
