China targets 2026 GDP growth at 4.5%-5.0%, as expected, while it sees 2026 CPI at around 2%

• Will keep GDP growth at a reasonable pace over the next five years.
• To create more than 12mln urban jobs in 2026.
• Targets 7% annual growth in R&D spending.
• Plans a budget deficit of around 4% of GDP.
• To issue CNY 4.4tln in new special local government bonds.
• Plans to issue CNY 300bln of special sovereign bonds for banks.
• Plans a CNY 100bln fiscal-financial coordination fund to support domestic demand.
• Aims to double per capita GDP by 2035 relative to 2020 levels.
• Will pursue a more proactive fiscal policy stance.
• Will strengthen policy support aimed at employment.
• Introduces employment support measures for college graduates.
• Targets a 3.8% reduction in CO₂ emissions per unit of GDP in 2026.
• Plans to raise defence spending by 7% in 2026 vs 7.2% Y/Y.
• Seeks to enhance integrated national strategies and strategic capabilities.

China's targets for GDP growth at 4.5%-5.0% align with expectations, indicating a stable economic outlook amid proactive fiscal policies. The projected CPI at around 2% suggests controlled inflation, which may allow for accommodative monetary policies in the near term, supporting investments and job creation. Overall, these targets reflect a commitment to maintaining economic stability while addressing employment and environmental goals.