Reference News Network, March 8 report. According to the German "China Platform" website on March 5, during the National People's Congress, China is formulating important economic policies. In 2026, China's target for economic growth is set between 4.5% and 5%.

The report points out that this cautious growth target reflects a difficult transition towards a new model of prosperity. The future industries have not yet released the expected economic momentum. The government work report and the "14th Five-Year Plan" outline attempt to point the way through this difficult period of transformation.

Chinese Premier Li Qiang outlined the pressure points of the world's second-largest economy. He said that China's economy is moving forward under pressure, demonstrating strong resilience. International environment has brought considerable pressure to China, "geopolitical risks continue to rise, the global economy's momentum is weak, multilateralism and free trade are severely impacted."

The report believes that, like last year, this year's government work report pays great attention to domestic consumption, arranging a special long-term national debt of 250 billion yuan to support the replacement of old consumer goods with new ones. Rong Yinru (Corinna Abel), Chief Representative of the German Federal Office for Economic Affairs and Export Control's Shanghai Liaison Office, said that the Chinese government hopes to create longer-term consumption incentives. Rong Yinru wrote in a written interview: "The government does not want consumption to be driven only by subsidies."

Additionally, market reforms will also promote domestic consumption. In the government work report, the primary goal this year is "building a strong domestic market." China plans to intensify efforts to address the fragmented situation caused by zero-sum competition and trade barriers. The government also plans to increase social welfare for retirees and young families.

Premier Li Qiang stated that during the "14th Five-Year Plan" period, the annual average growth of R&D investment in society will exceed 7%. This reflects the intention of China's economic planners, whose long-term focus remains on technology and industrial revitalization. The draft outline of the five-year plan states that industrial modernization and high-tech will provide security for China's future.

The report points out that German businesspeople in China are also preparing to face technological innovation. Oliver Ermes, Executive Director and Board Member of the China-Germany Chamber of Commerce for North China and Northeast China, interpreted the government work report, saying: "What will play a decisive role in China's economy in the future is future industries and innovation." He said that many of the Chinese government's efforts focus on the long term.

The China-EU Chamber of Commerce praised the content opposing "zero-sum competition" in a statement. Additionally, according to the government work report, China intends to "actively expand imports and promote balanced trade development." However, reconciling the fundamental conflict between the interests of trade partners and its own industrial strength is difficult.

The report points out that achieving comprehensive self-reliance and strength in economy and technology remains an important goal in the planning documents. A representative example of this is the slogan "Buy in China," which also appears in the government work report.

The report believes that whether the strategy of relying on future technologies as a growth engine will work remains to be seen over the next few decades. Regardless, economic planners are leaving greater flexibility for detailed planning. Setting the economic growth target in a range reduces the pressure of using short-term stimulus measures. (Translated by Wang Ziqiang)

Original: toutiao.com/article/7614876698277921343/

Statement: This article represents the views of the author.