economy

March 5, 2026

Is China in trouble: Beijing targets lowest economic growth since 1991

China has lowered its annual economic growth target to a range of 4.5 to 5 percent, the lowest since 1991, as it faces challenges at home and abroad.

Is China in trouble: Beijing targets lowest economic growth since 1991

TL;DR

  • China has set its annual economic growth target at 4.5-5%, the lowest since 1991.
  • This target is announced during the 'two sessions,' China's major political gatherings.
  • The government aims to reshape the economy while facing weak consumption, population decline, a property crisis, trade tensions, and energy challenges.
  • The five-year plan emphasizes investment in innovation, high-tech industries, scientific research, and household consumption.
  • Plans include over 100 major projects in science, technology, transport, and energy.
  • China aims to lead in green energy and reduce carbon emissions.
  • The country is working to build a 'birth-friendly society' amidst concerns about employment, education, and healthcare.
  • Over two-thirds of Chinese provinces have lowered their economic growth ambitions.
  • The property crisis is a key reason for weak domestic consumption and has impacted local governments and employment.
  • China's reliance on exports, supported by a large trade surplus, is seen as a vulnerability, particularly with US trade pressure.
  • The war in Iran has impacted China's access to cheap oil, though it is transitioning to renewable energy.

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