China Touts Domestic Growth Plan
As it kicks off its 15th Five-Year Plan (2026–2030), China is emphasizing its reliance on domestic growth drivers. State media is highlighting innovation, consumption, and economic resilience as key priorities to counter global economic headwinds and ensure a stable start to the new planning period.
The new plan builds on the 14th Five-Year Plan (2021-2025), which saw China's GDP exceed 140 trillion yuan (US$19.65 trillion) by 2025. During that period, China created over 12 million new urban jobs annually and increased its renewable energy capacity to account for about 60% of the total installed capacity. A central theme of the 15th Five-Year Plan is achieving technological self-reliance. Beijing is prioritizing breakthroughs in core technologies like semiconductors, artificial intelligence (AI), biotechnology, and 6G mobile communications to reduce its dependence on foreign technology. This involves a "new whole-nation system" that merges state-led goals with market-driven innovation. To stimulate consumer spending, the government is promoting the "Shopping in China" initiative, which includes streamlining visa procedures and improving tax refund services to attract international consumers. Additionally, a nationwide consumer goods trade-in program is being implemented to encourage households to upgrade older appliances. The plan also emphasizes green development and sustainability, aiming for carbon emissions to peak by 2030. This includes expanding renewable energy sources like solar, wind, and nuclear power, and promoting the growth of the electric vehicle industry and recycling systems. Industrial policy will focus on upgrading traditional sectors such as metals and machinery through automation and digitalization. Simultaneously, the plan aims to expand advanced industries like aerospace, new materials, and the "low-altitude economy," which includes drones. This domestic focus is a response to a global landscape marked by geopolitical tensions, economic uncertainty, and weak global demand. By strengthening its domestic market and achieving technological independence, China aims to enhance its economic resilience against external shocks.
