China’s 2026 Two Sessions: Key Takeaways on Economic and Political Priorities

From March 5 to 12, 2026, China convened its annual Two Sessions – the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). These meetings offer crucial insights into the nation’s evolving economic and political strategies. This year’s sessions were particularly significant due to the presentation of the 15th Five-Year Plan (FYP), outlining key policies through 2030.

Balancing Consumption and Investment

A central theme emerging from the Two Sessions is Beijing’s attempt to address economic slowdown by simultaneously boosting domestic demand and prioritizing technological advancement. Policymakers acknowledged that weak consumer confidence and spending are hindering growth, as reported by experts at APCO Worldwide. However, alongside this emphasis on consumption, there’s a continued focus on technology, advanced manufacturing, and state-led investment, particularly in sectors deemed strategically important for industrial upgrading.

This dual approach presents a challenge. Resources and attention from local governments may be diverted towards investment and supply-side initiatives, potentially limiting support for household incomes needed to stimulate immediate consumption. Despite increasingly stressing consumption, Beijing’s policy approach still leans towards familiar investment-driven solutions, according to analysis from the Asia Society.

Strengthening Military Control

The Two Sessions unfolded against a backdrop of ongoing leadership changes within the People’s Liberation Army (PLA). Recent purges of senior military figures suggest a concerted effort by General Secretary Xi Jinping to consolidate political control over the armed forces and reinforce party discipline. APCO Worldwide notes that this pattern also indicates underlying instability, with the removal of high-ranking officers pointing to persistent challenges within the military leadership.

The 15th Five-Year Plan: A Blueprint for 2026-2030

The most significant outcome of the Two Sessions was the adoption of the 15th Five-Year Plan. This plan serves as a roadmap for China’s national economic and social development over the next five years, outlining key objectives, strategic tasks, and major projects. As stated by Ambassador Xie Feng at the China in Springtime: China’s Development Opportunities for the World Global Dialogue, the plan ushers in a new phase of Chinese modernization and presents opportunities for global collaboration.

The plan emphasizes “new quality productive forces,” technological upgrading, and industrial self-reliance, as highlighted by Neil Thomas of the Center for China Analysis. This focus reflects a commitment to innovation and reducing reliance on foreign technologies.

Continuity in Leadership and Policy

Experts, including Neil Thomas, characterize this year’s Two Sessions as demonstrating continuity in politics, consistency in policy, and a conservative approach. Xi Jinping’s continued dominance and the emphasis on political discipline underscore the stability of the current leadership. The meetings reinforced the message that China is embarking on the 15th FYP period under Xi’s leadership and on his terms.

Boosting Domestic Spending

Recognizing the need to revitalize the economy, Chinese leaders are prioritizing measures to encourage increased domestic spending. As reported by the BBC, officials set an annual growth target of 4.5%-5% – the lowest since 1991 – and unveiled policies aimed at boosting household spending. These measures include expanding services for the elderly, enforcing paid annual leave, and providing more support for families raising children. An “urban-rural resident income growth plan” is also proposed to reduce income disparities and increase disposable income.

This shift represents a departure from China’s traditional growth model, which relied heavily on state investment, exports, and the property market. Policymakers are now placing greater emphasis on raising household incomes and strengthening consumption, viewing it as a key driver of future economic growth.