March 5 (Reuters) - China's political elite gathered in Beijing on Thursday as President Xi Jinping unveiled a sweeping roadmap for the country's economic and political future, delivered against a backdrop of sharpening tech competition with Washington and mounting geopolitical friction.
The National People's Congress, China's rubber‑stamp legislature, rolled out its Five‑Year Plan outlining goals for growth, budgets, industrial policy and defence - signalling Xi's determination to propel the world's second-biggest economy toward technological dominance.
Here are the main highlights from the NPC:
GDP, BUDGET PRIORITIES
China is looking to grow its economy at a 4.5%-5% pace, a touch below the 5% rate achieved last year, opening the door to greater efforts to rebalance the economy.
Beijing also plans steady stimulus to rev up an economy stuck in a lower post-pandemic gear, setting a budget deficit of 4.0% of gross domestic product, similar to last year.
HIGH-TECH DRIVE AS US RIVALRY SHARPENS
Aiming for technological supremacy amid a fierce rivalry with the U.S., Beijing is accelerating efforts to achieve greater tech self-reliance; and as the world's largest producer of rare earths, plans are also afoot to strengthen the competitiveness of these crucial minerals used in products ranging from electric vehicles to aircraft engines and defence technologies.
DEFENCE CAPACITY
China will improve combat readiness and accelerate the development of "advanced combat capabilities", Premier Li Qiang said, boosting defence spending by 7% in 2026.
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Military observers are watching closely as Beijing pushes to modernise its forces by 2035 and project military power amid the backdrop of rising regional tensions, including over Taiwan, and global geopolitical strains.
FINANCIAL SYSTEM
China will inject 300 billion yuan ($43.59 billion) into state-owned banks this year and deepen reforms of state-owned financial enterprises, moving to bolster its financial system amid a prolonged property crisis and deflationary pressure.
Promising a "childbirth-friendly society" in the next five years, Beijing aims to address concerns over employment, education and medical care as an ageing and rapidly shrinking population complicates its larger economic goals.
FOOD SECURITY
Grain production capacity will be raised to around 725 million metric tons over 2026-2030 in efforts to meet the nation's long-term food security objectives, highlighting its heavy reliance on imports of key agricultural products such as soybeans, with the U.S. its second-largest supplier.
EMISSION GOALS
The government plans to accelerate cuts in carbon intensity over the next five years, marking a shift from targeting energy intensity of its economy to directly targeting carbon intensity.
(Reporting by China bureau.Compiled by Shri Navaratnam)
