Market News International:

The 2026 GDP growth target has been lowered to a range of 4.5% to 5%. What are the main considerations behind setting this growth target? Thank you.

Shen Danyang:

Thank you for your question. The economic growth target for this year has two parts: first, achieving a growth rate of 4.5% to 5%, and second, striving for better in practice.

This takes into account domestic economic operations and changes in the external environment, balancing needs and possibilities. It is an active and pragmatic goal that aims high while maintaining steady steps. Why do we say that? On one hand, this target fully considers the need to leave room for structural adjustment, risk prevention, and reform promotion this year, while also aligning with the long-term goals for 2035. It reflects the requirements to consolidate the foundation and exert full effort during the 15th Five-Year Plan period. The Fifth Plenary Session of the 19th CPC Central Committee clearly proposed that by 2035, China's per capita GDP should reach the level of moderately developed countries. During the 14th Five-Year Plan period, China's economy achieved an average annual growth of 5.4%. According to expert research and calculations, working backwards from the long-term goal of "per capita GDP reaching over $20,000 by 2035, doubling that of 2020," an average annual growth of over 4.17% in the next decade would be enough to achieve this goal. On the other hand, this target matches China's growth potential. Many economic organizations, experts, and think tanks at home and abroad have made projections that generally align with our expectations and targets. Among major economies worldwide, China's growth rate is also roughly the highest.

I would particularly like to point out that this target is a range target, which leaves room to cope with various uncertainties, but also enables local governments to set their own growth targets according to local conditions, and this helps guide all parties to focus their efforts on high-quality development. As China's external environment for economic development grows increasingly complex and volatile this year—with uncertainties likely to exceed expectations—a range-based growth target provides the flexibility needed to respond effectively to these challenges. Regarding this year's uncertainties in the external environment, we have all seen the recent international situation.

Finally, I want to emphasize that this "twofold target" contains "striving for better in practice," which demonstrates a proactive goal orientation and policy direction. This is based on two considerations. First, China's economy has strong resilience and vitality, with its structure continuing to improve and new quality productive forces growing rapidly. Second, this year we will continue to implement more proactive and effective macro policies, while also deepening reforms in a series of key areas, which will inevitably further unleash the potential for economic growth. Under such circumstances, we believe that as long as we make full and effective use of all favorable conditions, we can absolutely strive for better results, achieving effective qualitative improvement and reasonable quantitative growth. Thank you.