Provinces unveil GDP targets, priorities

BEIJING — China's provincial-level governments have unveiled their GDP targets for this year and beyond during their annual "two sessions", while pledging to drive up the economy by boosting consumption and supporting key industries.

Setting economic growth targets is a key focus in the annual meetings of provincial-level legislatures, which generally take place before the national session. Various regions have announced their 2026 GDP goals, mostly varying from 4.5 percent to 5.5 percent, while some others have set even higher targets.

Beijing has set a 5 percent GDP growth target for 2026, while aiming for an average annual growth of 4.5 to 5 percent for the 2026-30 period.

Guangdong, China's largest provincial economy, and a manufacturing and foreign trade hub, expects a growth of between 4.5 percent and 5 percent in 2026, and an average annual growth of around 5 percent in the coming five years.

Zhejiang, another manufacturing heartland in East China, aims for 5 to 5.5 percent GDP growth in 2026.

China's southernmost island province of Hainan, which launched island-wide special customs operations at Hainan Free Trade Port on Dec 18, has set a relatively higher GDP growth target for 2026 at around 6 percent.

Southwest China's Xizang autonomous region is aiming for a GDP growth of more than 7 percent in 2026.

Beyond these headline figures, local government work reports feature buzzwords such as strengthening scientific and technological innovation, building a modern industrial system, and boosting service industries and consumption, reflecting key policy priorities for cultivating new drivers of economic growth.

Boosting demand

Boosting domestic demand and building a robust domestic market have been prioritized in 2026 during the Central Economic Work Conference, and local governments have responded with concrete policy measures in their latest work reports.

Upgrading consumption, unlocking the potential of service consumption and cultivating new growth areas are among the key focuses.

Beijing's 2026 blueprint commits to boosting policy support for education, healthcare, eldercare and childcare services, while encouraging digital platforms to innovate in home service offerings.

Other regions have emphasized the potential of their signature industries, such as marine tourism and the ice-and-snow economy, to stimulate consumption and drive new demand.

Hainan announced plans for a 2026 "Marine Tourism Year" to boost tourism consumption related to the ocean, aerospace and tropical rainforests, aiming for an 8 percent increase in total tourist visits and a substantial rise in inbound travelers.

Experts also highlight the critical role of expanding effective investment in spurring domestic demand, such as upgrading and constructing infrastructure projects that are key to integrated development. A case in point is the 348.9-kilometer Tianjin-Weifang High-speed Railway, a key segment of China's "eight vertical and eight horizontal" high-speed rail network's coastal corridor and the Beijing-Shanghai auxiliary passage.

Innovation push

Beijing, in its latest government work report, has pledged to fully implement the "AI Plus" initiative and establish a national artificial intelligence application pilot base in 2026.

Its AI ambition is more clearly stated in its five-year plan, recently submitted to the municipal people's congress meeting. According to the plan, the city will nurture a "world-leading AI industrial ecosystem," develop a set of industry-leading large models, and improve the AI standards system and application guidelines.

The plan also sets the city's spending on research and development at over 6 percent of GDP between 2026 and 2030.

Zhejiang, home to leading AI companies such as DeepSeek and Alibaba's Qwen, has pledged to expand AI application scenarios. The province aims for more than 20 percent revenue growth in its core AI industry, projecting over 800 billion yuan ($115 billion) in 2026.

"Core technologies, including chips, operating systems, databases and base models, are now decisive for future competition," said Fang Xingdong, a member of the Zhejiang provincial committee of the Chinese People's Political Consultative Conference.

"Local governments need exceptional strategies in R&D investment. This is vital for current growth and long-term competitiveness in global sci-tech," Fang added.

Industrial upgrade

Building a modern industrial system is another recurring theme in local government work reports, reflecting a continuous emphasis on the real economy and advanced manufacturing.

Guangdong plans to accelerate the upgrading of traditional sectors like electronics and machinery, aiming to build resilient industrial clusters with strong consumer brands in fields like home appliances and furniture.

Over the past five years, Guangdong has pioneered a holistic "chain-wide transformation" model for upgrading entire industrial and supply chains. It now hosts over 30 percent of China's companies in the low-altitude industry chain.

Simultaneously, the province plans to scale up emerging industries such as new energy, smart vehicles and integrated circuits, while fostering future sectors including 6G, brain-computer interfaces and quantum technology.

Zhejiang aims to develop clusters in areas like new materials, new energy, aerospace, low-altitude economy and biomedicine. The province will also promote future industries like humanoid robots, brain-computer interfaces, brain-like intelligence, quantum information, and biomanufacturing with tailored "one-chain-one-policy" measures.

Xinhua - China Daily