China Sets 4.5-5% GDP Target in New 5-Year Plan
China has launched its 15th Five-Year Plan, setting a 2026 GDP growth target of 4.5-5% and emphasizing a policy of “opening up” to foreign investment. Officials state the country has a “solid basis” for the goal, which also includes expanded child-rearing subsidies and a push toward a “Healthy China” by 2035.
The new GDP target is a moderation from the average annual growth of 5.4% seen during the 14th Five-Year Plan (2021-2025). Officials have framed the 4.5-5% range as a "reasonable and necessary" goal that aligns with the long-term objective of doubling China's per capita GDP by 2035. A key pillar of the plan is boosting domestic consumption, partly through pro-natalist policies. More than 100 billion yuan (about $14.5 billion) has been allocated for childcare subsidies, providing 300 yuan per month for each child under three. This program, which began in 2025, already covers over 33 million children and is part of a broader effort to create a "birth-friendly society." The "opening up" policy will see a continued reduction of the "Negative List for Foreign Investment Access," with all restrictions in the manufacturing sector already removed. The focus is now on widening access in service industries like telecommunications and healthcare. This comes despite a recent 27.1% year-on-year drop in foreign direct investment in 2024. Technological self-reliance is another central theme, with research and development spending projected to rise by at least 7% annually. This investment will target key areas like advanced manufacturing and high-tech sectors to build what leaders call "new quality productive forces." The 2026-2030 period is considered a critical implementation phase for the "Healthy China 2035" initiative. A major goal outlined in the plan is to increase the average life expectancy in China to 80 years by the year 2030. President Xi Jinping has emphasized that this period will be crucial for making decisive progress toward the long-term health strategy.
