Planned priorities

The two sessions will shed light on how China’s leadership intends to translate its long-term strategic vision into concrete policy actions

Each year, political attention converges on Beijing for China’s two sessions — the annual meetings of the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference. The 2026 two sessions coincide with a moment of strategic transition, both domestically and internationally, marking the first year of China’s 15th Five-Year Plan (2026-30) and setting the policy tone ahead of the 21st National Congress of the Communist Party of China in 2027.

In a world shaped by accelerating technological change, geopolitical tension and economic fragmentation, the decisions and signals emerging from Beijing in March 2026 will resonate well beyond China’s borders.

The NPC, China’s highest organ of State power, is responsible for legislation, approval of major policy orientations, examination of the national budget and the appointment of key State leaders. Its annual session provides the most authoritative insight into the government’s priorities and policy direction for the year ahead.

The CPPCC serves as a broad-based advisory body, bringing together representatives from political parties, mass organizations, ethnic groups and key sectors of society. Although it does not exercise legislative authority, the CPPCC plays a central role in political consultation, consensus-building and policy deliberation.

Together, the two sessions, which run in tandem, constitute a synchronized moment of policy articulation, political signaling and institutional alignment. Their significance is heightened at the opening of a new planning cycle, when strategic direction must be clarified and coordinated across the system.

The 2026 two sessions take place against a demanding external environment. The global economy is undergoing profound structural transformation, driven by rapid advances in artificial intelligence, green technologies, digital infrastructure and advanced manufacturing. At the same time, intensifying strategic competition, supply-chain realignment and technological decoupling are reshaping international economic relations.

In this context, technological changes leave little margin for error. Policy miscalculations can have long-lasting consequences, particularly in areas such as innovation ecosystems, industrial upgrading, energy transition and demographic adaptation. For China, which seeks to climb the global value chain while preserving social stability and economic resilience, strategic coherence is not optional but essential. In 2025, China’s GDP expanded by 5 percent, reaching more than $20 trillion — roughly equivalent to the combined economies of Germany, Japan, India, the United Kingdom and Italy.

At the center of the 2026 two sessions lies the launch of the 15th Five-Year Plan. Five-year plans remain a core instrument of China’s governance model, providing medium-term strategic direction while allowing scope for policy adjustment and regional differentiation.

The importance of the 15th Five-Year Plan extends beyond its economic objectives. It functions as a unifying framework: aligning national priorities with provincial implementation, coordinating expectations across the public and private sectors, and offering society a shared road map for development. In a period marked by uncertainty and transition, such cohesion constitutes a strategic advantage.

Modernization is the organizing principle of this planning process. China’s leadership has repeatedly emphasized that modernization is not defined solely by growth rates, but by quality, sustainability and balance of development. The new plan is expected to deepen commitments to high-quality development, technological self-reliance, green transformation and stronger social welfare systems, while addressing challenges related to aging, productivity constraints and uneven regional development.

Several broad orientations of the 15th Five-Year Plan are already evident.

First, innovation remains central. Science and technology are treated not only as engines of growth, but as pillars of national security and long-term competitiveness. Investment in basic research, talent development and strategic emerging industries is likely to intensify.

Second, economic resilience is emphasized. This includes boosting domestic demand — arguably one of the most critical policy priorities in the years ahead — strengthening supply-chain security, and managing the balance between openness and risk prevention. The construction of a “modern industrial system” is expected to feature prominently.

Third, green and low-carbon development will continue to shape policy choices. Climate commitments and environmental constraints make the energy transition, resource efficiency and ecological protection indispensable components of the plan.

Fourth, social cohesion remains a core concern, particularly for a country of 1.4 billion people. Employment stability, income distribution, public services and demographic adaptation are essential to sustaining long-term development and social harmony.

The priorities articulated during the two sessions will shed light on how China’s leadership intends to translate long-term strategic visions into concrete policy actions, while preserving continuity and adapting to evolving domestic and international conditions.

China’s governance framework places strong emphasis on long-term objectives. Targets for 2035 and beyond — including achieving socialist modernization, becoming a global leader in innovation and significantly improving living standards — serve as fixed reference points for medium-term planning.

Seen in this light, 2026 is a pivotal year. It bridges the conclusion of the 14th Five-Year Plan (2021-25) and the longer horizon of mid-century goals. Decisions taken at this juncture will shape China’s development trajectory for years to come.

Under these conditions, global attention on Beijing in early March is inevitable. Investors, policymakers, scholars and governments will closely scrutinize the two sessions for signals about China’s economic direction, its approach to technological competition and its vision of modernization in a rapidly changing world.

More than an annual political ritual, the 2026 two sessions mark the opening chapter of a new strategic cycle — one in which China seeks to navigate uncertainty through planning discipline, institutional cohesion and long-term purpose.

The author is a specialist in global affairs and sinology, and the founder of the China-Europe-America Global Initiative.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.