China's Leadership Plots Next Five Years

Chinese President Xi Jinping last week offered his five-year plan for the future of the Asian country. He did so as the National People’s Congress met in Beijing for its annual 10- to 14-day session.

China’s legislature has nearly 3,000 delegates. It mostly approves all policies drawn up by the Chinese Communist Party, led by Xi. The leader laid out goals for growth, budgets, businesses, and defense.

Xi’s prime minister, Li Qiang, surprised many experts by calling for economic growth of between 4.5% and 5% in 2026. It is a more modest forecast than last year’s 5%. China has the world’s second largest economy behind the US. But it has also grown a lot in recent years. The current effort is designed to settle the country into a more stable economy over the next five years.

The five-year plan outlines major spending on AI and other tech. China is the world’s biggest producer of rare earth minerals. Those are needed for AI and other tech. Xi said the country will strive to keep leading the way in rare earths. They are used in many modern things from electric cars to defense systems.

Defense spending will increase by 7% this year. The money will be used to develop “advanced combat capabilities.” Reuters reported that China is seeking to update its armed forces. It wants to be seen as the major power in the region. Much of that power is aimed toward Taiwan, which China has sought to bring more under its control.

On climate, China said it wanted to reduce its carbon intensity by 17% from 2026 to 2030. Carbon intensity is a certain way of measuring emissions. Experts noted that the 17% target falls short of goals China agreed to in world climate deals.

Reflect: If you were helping create a plan for the future of a country or community, what areas would you focus on improving first?

Photo of China’s President Xi Jinping from Reuters.