Reference News Network, March 7 report - According to the website of the U.S. "New York Times" on March 5, every March, Beijing announces the annual economic growth target for the world's second-largest economy.

The 2026 target was set at 4.5% to 5%. This announcement was made during the opening of the annual session of the National People's Congress, along with the government's policy priorities for this year.

Economic growth targets are closely watched by financial markets.

Wang Dan, director of Eurasia Group's China division, said that the lower economic growth target indicates that the Chinese government is willing to tolerate short-term growth slowdowns while focusing on longer-term structural adjustments.

Liu Zongyuan, senior researcher on China issues at the Council on Foreign Relations, said that the lower growth target was "expected by the market and economists." She said that it gives policymakers space to address deep-seated issues.

The Spanish website "El Mundo" published an article titled "China Maintains Steady Course While Cutting Spending" on March 5, authored by Lucas de la Calle.

The article said that Chinese Premier Li Qiang delivered a government work report. The document outlined China's goals in areas such as the economy, military, and diplomacy. The most attention was paid to the economic growth target: 4.5% to 5%. This reduction is not merely a technical adjustment. China believes that the era of high-speed growth has ended, and China must adapt to a more moderate growth model in an increasingly fragmented global landscape.

China remains a major exporting power, thanks to its strong industrial strength and dominant position in strategic areas such as batteries, solar panels, and electric vehicles.

The article pointed out that the government work report mentioned "high-quality development," with stability being one of the focuses: slower growth but better growth; ensuring urban employment and avoiding financial shocks.

According to Reuters on March 5, China set the 2026 economic growth target at 4.5% to 5%, slightly lower than last year's target of around 5%, meaning that China has more room to implement measures to rebalance the economy.

Analysts say that the lower growth target gives Beijing greater flexibility to implement reforms, thereby reducing the world's second-largest economy's reliance on exports.

Lin Shili (音), chief strategy officer for macro and foreign exchange in the Asia-Pacific region at Convera, said: "China's decision to set the 2026 growth target at 4.5% to 5% reflects a pragmatic attitude in the face of challenging global and domestic environments."

Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered Bank, said: "China has slightly lowered the growth target... with a focus on strengthening technological innovation and expanding domestic demand."

He said: "The government work report also proposed measures to improve the environment for promoting employment and entrepreneurship in the context of the development of artificial intelligence technology, which is a relatively innovative arrangement."

Yuan Tao, analyst at Tongsheng Futures, said: "The economic growth target shows that the government pays more attention to the quality of growth rather than speed. Giving a range instead of a specific numerical target means that China is willing to tolerate slower growth and accelerate economic transformation, which is not bad in the long run."

(Translated by Feng Xue, Liu Xiaoyan, Wang Meng)

Original: toutiao.com/article/7614466916790321727/

Statement: This article represents the personal views of the author.