China sets roughly 5% growth target and pledges 12 million new urban jobs at Two Sessions

Policy targets

China has set a GDP growth target of "around 5%" for 2026 and aims to create more than 12 million new urban jobs, Premier Li Qiang (李强) announced at the annual Two Sessions (两会) policy meetings — the joint gatherings of the National People's Congress (全国人民代表大会) and the Chinese People's Political Consultative Conference (中国人民政治协商会议) — which began Wednesday. The goal is framed as a stabilizing, achievable benchmark rather than a high-growth aspiration, and it will shape Beijing’s fiscal and administrative priorities for the year ahead.

Economic context and challenges

Why aim for 5% now? The target reflects a slower, more complex growth environment: a long-running property-sector correction, a shrinking working-age population, and softer external demand have all weighed on momentum. Beijing typically deploys a mix of fiscal stimulus, targeted support for local governments, and credit measures to meet such targets. But delivering over 12 million urban jobs will be a test — employment generation is both an economic and a political priority.

Geopolitical and social implications

The target also lands amid rising geopolitical frictions. Trade tensions, export controls on advanced technologies, and sanctions-related frictions with the United States and its partners complicate China’s industrial upgrading and foreign-investment flows. Can Beijing stabilize growth and jobs without reigniting debt-fuelled stimulus? The answer will matter beyond China’s borders — for global commodity markets, supply chains and investors deciding whether to lean into or away from the world’s second-largest economy.