Recently released economic and social development data for 2025 provides a basis for evaluating China's annual economic performance. As the inaugural year of the 15th Five-Year Plan period, where does the core potential of China's economy in 2026 primarily lie, and how can this potential be fully harnessed? A relevant official from the National Development and Reform Commission addressed these questions at a press conference held by the State Council Information Office.
"Throughout 2025, economic operations demonstrated steady progress, enhanced resilience, and more considerate livelihood policies, culminating in a high-quality report card," stated Wang Changlin, Deputy Director of the National Development and Reform Commission. Economic strength reached a new level; despite a turbulent external environment, the annual GDP surpassed the 140 trillion yuan threshold. The 5% growth rate remained among the highest of the world's major economies, with the economic increment equivalent to the total output of a medium-sized economy.
New breakthroughs were achieved in developing new quality productive forces. Innovative results emerged competitively, with research and application in artificial intelligence, biomedicine, and robotics advancing to the global forefront. Steady progress was made in building a modern industrial system, leading to the revitalization and upgrading of traditional industries and the accelerated formation of new drivers from emerging and future industries. Value-added output in the manufacturing sector ranked first globally for the 16th consecutive year. "Practice proves that 'chokehold' tactics are ineffective; China possesses powerful innovation genes and immense innovation potential," Wang Changlin remarked.
Reform and opening-up entered a new phase. Efforts to deepen the development of a unified national market progressed, further consolidating and expanding the advantages of a super-large market, while the competitive landscape in key industries continued to optimize. Orderly advancement was made in expanding autonomous and unilateral opening-up, resulting in a 6.1% growth in goods exports against the trend. The total value of imported goods accounted for approximately 10% of global imports, maintaining China's position as a primary export destination for 79 countries and regions globally.
Livelihood and well-being witnessed new improvements. Responding to new public expectations, efforts were strengthened in universal, basic, and essential livelihood initiatives. The育儿补贴 system (child-rearing subsidy system) was implemented in an orderly manner, free pre-school education was gradually promoted, and holiday arrangements were optimized, delivering tangible benefits to millions of households. Enhancing people's livelihoods served as a catalyst, opening up new spaces for development. "The data indicates that these achievements were hard-won and fully demonstrate the primary characteristics of China's economy: a stable foundation, multiple advantages, strong resilience, and vast potential," said Zhou Chen, Director General of the Department of Comprehensive Economic Affairs at the National Development and Reform Commission.
As the inaugural year of the 15th Five-Year Plan period, 2026 holds high expectations for China's economy. "Looking ahead to 2026, China's economic structure will continue improving, development drivers will continue innovating, and the overall development trend will remain positive, with steady development of new quality productive forces. We believe that consumption and investment, technology and industry, as well as urban-rural and regional development will unleash enormous potential," Zhou Chen stated.
From a micro perspective, new technologies, products, and scenarios are gaining momentum. New growth points such as new energy, new materials, aerospace, quantum technology, bio-manufacturing, and embodied intelligence are poised for takeoff. The installed capacity of new energy storage has already exceeded 100 million kilowatts, accounting for over 40% of the global share. It is reported that relevant departments are planning and promoting a number of landmark, leading major high-tech industry projects for the 15th Five-Year Plan period.
From a meso perspective, the integration of innovation chains, industrial chains, and talent chains is accelerating. A complete industrial system, a super-large market of over 1.4 billion people, and the world's largest and most comprehensive talent pool constitute a full-chain, full-scenario advantage for pushing innovation outcomes from the 'shelf' to the 'market'. The added value of the digital economy is expected to reach 49 trillion yuan in 2025, accounting for about 35% of GDP, and is set to create even greater market space in the future.
From a macro perspective, the innovation-leading role of key development regions continues to strengthen. China now hosts 24 of the world's top 100 innovation clusters, ranking first globally for three consecutive years. The three international sci-tech innovation centers in Beijing (Beijing-Tianjin-Hebei region), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area are being deployed and constructed, accelerating the formation of global hubs for scientific innovation and important sources for emerging industries.
"The Chinese economy is a vast ocean. We will persist in combining policy support with reform and innovation to fully unleash the enormous potential contained within this ocean, transforming development potential into new kinetic energy and turning technological flows into new economic increments," Zhou Chen said.
Faced with the issue of strong supply versus weaker demand in the economic operation, how will macro policies be effectively implemented in 2026? Wang Changlin indicated that to address these issues, it is necessary to expand domestic demand and optimize supply, promoting a dynamic balance and virtuous cycle between supply and demand at a higher level, and fostering an economic development model increasingly led by domestic demand, driven by consumption, and characterized by endogenous growth. The focus will be on adhering to "three key principles".
First, persist in focusing the efforts of macro policies on strengthening the domestic circulation, and comprehensively expand domestic demand. An implementation plan for the strategy to expand domestic demand for 2026-2030 will be researched and formulated, providing strong innovative measures and factor guarantees for leading new supply with new demand and creating new demand with new supply, striving to achieve mutual promotion between supply and demand and an upgraded cycle.
Second, persist in focusing the emphasis of economic development on the real economy, and accelerate the construction of a modern industrial system. Adhere to the directions of intelligentization, greening, and integration, promote the quality upgrade of key industries, vigorously cultivate and strengthen emerging and future industries, and deeply implement actions such as the "AI Plus" initiative.
Third, persist in focusing the regulation of market operations on deepening the construction of a unified national market, and fully stimulate market vitality. The key is to comprehensively address "involution-style" competition, achieving a shift from competing on price to competing on value. Mechanisms for market access, fair competition, and capacity exit will be improved, capacity regulation will be strengthened, and efforts will be made to actively resolve the阶段性矛盾 of oversupply.
"As long as we fully tap into economic potential, focus on advancing reform and innovation, and persistently strengthen our internal capabilities, we have full confidence, ability, conditions, and底气 to ensure a good start and solid first steps for the 15th Five-Year Plan period," Wang Changlin stated.
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