Editor's note: Stephen Ndegwa, a special commentator for CGTN, is the executive director of South-South Dialogues, a Nairobi-based communications development think tank. The article reflects the author's opinions and not necessarily the views of CGTN.

Each spring, China's Two Sessions, the annual meetings of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference, offer an important window into the country's policy priorities. This year's gathering carries particular weight because it marks the opening year of the upcoming 15th Five-Year Plan period (2026–2030), a new stage in China's long-term development strategy.

At the center of attention is the government work report (GWR) delivered at the opening meeting of the NPC on March 5. While the full 15th Five-Year Plan has not yet been officially released, the GWR outlines policy priorities for the coming year and provides early signals about the direction China intends to take in the next planning cycle. What is currently available is a guiding document that provides major objectives of the 15th Five-Year Plan.

But even at this stage, the message emerging from the Two Sessions is clear. China is entering the new planning period with a focus on resilience, innovation and high-quality economic development.

The starting point for this new phase is the performance of the Chinese economy in 2025. According to theGWR submitted to the National People's Congress, China's gross domestic product reached 140.19 trillion yuan (about $20.4 trillion) in 2025, representing year-on-year growth of about 5%. These figures, compiled by the National Bureau of Statistics, indicate that the world's second-largest economy maintained steady expansion despite a challenging global environment.

Looking ahead to 2026, the government has adopted a pragmatic approach to growth. The report sets a GDP growth target of 4.5% to 5%, a level broadly consistent with China's recent economic trajectory. According to the State Council, this target reflects the need to balance stable expansion with deeper structural reforms and risk management.

Other major economic targets reinforce the emphasis on stability and employment. The government aims to create more than 12 million new urban jobs, while keeping the surveyed urban unemployment rate at around 5.5%. Meanwhile, the consumer price index is expected to rise by about 2%, indicating a continued commitment to price stability. These benchmarks, outlined in the report and economic planning documents, highlight the government's focus on maintaining steady livelihoods alongside economic growth.

Fiscal policy will also play an important role in supporting the economy during the early phase of the new five-year cycle. According to the GWR, the deficit-to-GDP ratio is set at around 4% for 2026, with the government deficit projected at approximately 5.89 trillion yuan. Expenditure in the general public budget is expected to exceed 30 trillion yuan, reflecting a more proactive fiscal stance.

These measures are designed to strengthen domestic demand, which economists increasingly see as the next major engine of China's growth. Data from the National Bureau of Statistics show that final consumption expenditure accounted for more than half of China's economic growth in 2025, highlighting a gradual shift toward a more consumption-driven economic model.

For decades, investment and exports powered China's rapid expansion. Today, policymakers are placing greater emphasis on expanding domestic demand, improving household incomes and developing the service sector.

Equally central to China's economic outlook is the continued push for technological innovation. The GWR notes that the country made significant advances in areas such as artificial intelligence, biomedicine, robotics and quantum technology over the past year. These developments are closely linked to China's strategy of cultivating new quality productive forces, referring to industries driven by scientific research, digital technologies and advanced manufacturing.

This emphasis on innovation reflects a long-term objective to upgrade China's industrial structure and ensure sustainable growth in an increasingly competitive global economy. The Ministry of Science and Technology and other national institutions have highlighted the importance of expanding research and development investment, strengthening industrial supply chains and fostering innovation-driven industries.

Environmental sustainability also remains an integral part of China's development strategy. According to the report, energy consumption per unit of GDP fell by 5.1% in 2025, reflecting continued progress toward greater energy efficiency. Such improvements are consistent with China's broader goals of promoting green development and reducing carbon intensity over the coming decades.

In a world increasingly defined by economic volatility and geopolitical uncertainty, China's approach reflects both caution and confidence. Rather than pursuing rapid expansion at any cost, China appears focused on building a more resilient, innovative and sustainable economy.

As the new planning period begins, the real question is not simply how fast China will grow, but how effectively it can translate resilience and innovation into long-term prosperity. If the signals from this year's Two Sessions are any indication, the foundations for that next chapter are already being laid.

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