China has concluded its annual major political event, the National People's Congress (NPC), confirming its 15th Five-Year Plan and setting the economic growth target for 2023 at 4.5-5%.
China's annual political event, the Two Sessions, concluded on March 12, 2023, with the National People's Congress (NPC) officially ending the meeting in Beijing. Amid economic downturn and international political instability, the event confirmed the direction of national governance and approved the draft of the 15th Five-Year Plan (2026-2030). The plan will focus on "self-reliance and strength in science and technology" and will promote domestic consumption as key strategies for economic and social development over the next five years.
In terms of technological development, the plan emphasizes strengthening foundational innovations and targeting core technologies. It highlights specific areas such as artificial intelligence (AI), quantum science, nuclear fusion development, life sciences, medicine, deep-sea and space exploration. Expanding domestic consumption has emerged as a central task for overcoming economic stagnation, with plans to combine increased investment in people's livelihoods and consumption promotion with physical as well as human capital investments, including state support for consumer subsidies.
Additionally, the draft of the Government Work Report approved at the NPC set the economic growth target for the year at 4.5-5%, the lowest since the 1980s. This move has been interpreted as a signal of shifting economic priorities from scale and speed to quality. Analysts suggest that China is recognizing the limits of its rapid growth model, a significant shift from the previous targets maintained around 5% over the past three years. The government emphasizes that this year’s growth target aligns with a phase of “high-quality development.” The 15th Five-Year Plan does not set an annual growth target, continuing a trend established with the previous 14th Five-Year Plan.
