China sets lowest growth target since 1991 as economy struggles to keep momentum
#China GDP growth #National People's Congress #Export-led model #Trade tensions #Demographic challenges #Defense spending #Economic rebalancing #Strategic uncertainty
📌 Key Takeaways
- China sets lowest growth target in 35 years at 4.5-5% amid economic challenges
- China rebalancing from export-dependent model to boost domestic demand
- Defense spending increases 7% amid regional tensions and military modernization goals
- China faces demographic challenges with aging population and declining birth rates
📖 Full Retelling
Chinese Premier Li Qiang announced China's lowest growth target in 35 years Thursday at the Great Hall of People in Beijing during the National People's Congress, setting the GDP growth goal at 4.5% to 5% as the world's second-biggest economy struggles with domestic challenges and global uncertainty while its export-led model reaches its limits. This year's target, the country's lowest since 1991, represents a formal downgrade from the 5% achieved last year and reflects an acknowledgment from Beijing that its previous economic approach is becoming unsustainable. Premier Li delivered the 'work report' during the opening session of China's biggest political event, overseen by President Xi Jinping, which comes weeks before President Donald Trump's planned visit to China for a meeting aimed at extending a fragile trade truce. China is attempting to rebalance its economy by boosting domestic demand while addressing structural issues including a prolonged property slump, industrial overcapacity, and soaring local government debt, while simultaneously investing heavily in cutting-edge technologies like artificial intelligence and robotics to compete with the United States. The government also announced it would roll out economic policies 'against U.S. tariffs,' which have varied wildly since Trump's return to office, though China maintained a record trade surplus of almost $1.2 trillion last year despite falling exports to the U.S.
🏷️ Themes
Economic Transition, Geopolitical Tensions, Demographic Challenges
📚 Related People & Topics
Military budget
Financial resources dedicated by a state for purposes of national defense
A military budget (or military expenditure), also known as a defense budget, is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defense purposes.
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Original Source
China sets lowest growth target since 1991 as economy struggles to keep momentum It’s an acknowledgment that growth in the world’s second-biggest economy is slowing as its export-led model starts to reach its limits. Chinese Premier Li Qiang at the opening session of the National People’s Congress at the Great Hall of the People in Beijing on Thursday. Florence Lo / AFP - Getty Images Share Add NBC News to Google March 5, 2026, 12:27 AM EST By Janis Mackey Frayer , Dawn Liu and Erin Tan Listen to this article with a free account 00:00 00:00 BEIJING — China announced its lowest growth target in 35 years Thursday as the world’s second-biggest economy struggles with challenges at home and growing uncertainty around the world. This year, China will aim for GDP growth of 4.5% to 5%, “while striving for better in practice,” Premier Li Qiang, China’s No. 2 official, said in a “work report” delivered inside the Great Hall of the People in Beijing during the opening session of the National People’s Congress, China’s biggest political event of the year. That figure, the country’s lowest since 1991, compares with the 5% target achieved last year and is the first formal downgrade since 2023. It’s an acknowledgment that China’s growth is slowing as the model that supercharged its economy for decades starts to reach its limits. “While recognizing our achievements, we are also clear-eyed about the difficulties and challenges we face,” Li said in his more than hourlong address, during which he read much of the 35-page report. Thousands of delegates are gathered in Beijing for the National People’s Congress, where the ruling Communist Party sets economic targets, lays out policies and signals its tone to the rest of the world. The event, overseen by Chinese leader Xi Jinping , is tightly scripted and almost entirely predetermined to showcase a leadership hyper-focused on stability. It comes weeks before President Donald Trump is set to visit China for a meeting with Xi where both le...
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