Beijing is doubling down on advanced technology and boosting domestic demand amid economic slowdown, according to signals coming from the annual "Two Sessions" meetings set to conclude this Thursday.

Thousands of delegates are attending the annual meetings of the National People's Congress (NPC) — the Chinese legislative assembly — and the Chinese People's Political Consultative Conference (CPPCC), a top level advisory body, in Beijing.

Together, the two conferences offer early signals about potential shifts in China's policy — particularly on the economy, security and foreign affairs.

China sets lowest growth target in decades

This year's "Two Sessions" also coincide with the launch of China's 15th Five-Year Plan, the country's economic and political road map for 2026–2030.

Premier Li Qiang set a GDP growth target of around 4.5–5% for 2026, the lowest official goal since 1991. The figure marks a notable shift after decades in which China maintained rapid expansion, positioning itself as a key driver of global economic growth.

Xu Chenggang, a senior research scholar at the US-based Stanford Center on China's Economic and Institutions, warns that independent estimates of China's growth suggest the real figure may already be significantly lower than the one presented in government statistics.

"In light of the persistent economic downturn and the pressure continuing to build, they have to lower the official outlook," he said.

Boosting consumer spending was another key priority highlighted by Premier Li. At the same time, the government did not announce a notably larger fiscal stimulus compared to last year. This has already raised questions among some analysts, who wonder if the measures will be enough to revive weak domestic demand.

Xu argues China's relatively low household income share remains a major constraint on consumption. "Otherwise they are only paying lip service to tackling the issue," he said.

New tech central to new 5-year plan

The launch of the 15th Five-Year Plan also highlights Beijing's focus on technological development.

Despite the economic slowdown, China aims to double the size of its GDP by 2035 compared with 2020. In Beijing, Premier Li indicated that sectors such as artificial intelligence, humanoid robotics and green energy will play a central role in achieving that goal. 

Li also said the government would "coordinate the development of computing infrastructure… to strengthen the foundations of digital and intelligent development."

The push comes as China competes increasingly with the United States in advanced technologies.

AI as 'an essential tool' for China's development

Alexander Brown, a senior analyst at the Mercator Institute for China Studies, said Beijing sees AI as "an essential tool to turbocharge its industrial and high-tech ambitions."

He added that China's abundant renewable energy and strong government support could provide competitive advantages in developing these industries.

But Brown questioned Beijing's ambition of simultaneously focusing on high-tech industries while shifting its economy toward consumption-driven growth.

"China says it wants to boost consumption while continuing to expand its industrial base and innovation capabilities,” he said. "I don't think it can do both effectively over the next five-year period."

China's top diplomat wants closer ties with Europe

On foreign policy, Beijing also sketched out a course to improve ties with the EU and the US while rebuking Japan over Taiwan.

At a press conference attended by both domestic and international journalists, Foreign Minister Wang Yi said relations between China and the European Union were improving after several European leaders visited China in recent months. He also argued that further opening up would benefit both sides, describing their economies as complementary.

At the same time, he urged European policymakers to form what he called "a correct understanding of China."

Wang also addressed the ongoing diplomatic feud between China and Japan over Taiwan, a self-governed island that Beijing views as a part of China. Beijing and Tokyo remain at odds over Japanese Prime Minister Sanae Takaichi saying a Chinese invasion of the island could constitute a "survival-threatening situation" for Japan, potentially allowing Tokyo to exercise its legal right to collective self-defense.

The Chinese minister seem to criticize Takaichi, without mention her by name.

He reiterated that the Taiwan issue is a domestic matter for China, asking: "What does it have to do with Japan?"

"The clearer the international community's opposition to 'Taiwan independence', the more assured peace and stability across the Taiwan Strait will be," he said.

Wang also described 2026 as a "big year" for relations between China and the United States, saying top-level engagement — including a possible meeting between Xi and President Donald Trump — was "on our table."

"If both sides treat each other with respect and sincerity," Wang said, "the list of problems will get shorter and the one of cooperation will grow longer."

Wu‑Ueh Chang, a senior fellow at Taiwan's Institute for National Policy Research, said a potential Xi–Trump meeting would likely focus on stabilizing ties rather than producing major breakthroughs.

"As long as China–US relations do not spiral out of control, there will likely be no big surprises" regarding Taiwan, Wu said.

Beijing facing international tensions, competition

The meetings are scheduled to conclude on March 12, when delegates to the National People's Congress will vote to approve the government's budget, economic targets and legislative agenda.

While the votes are largely seen as a formality, the ceremony cements China's policy framework for the coming year.

Taken together, this year's "Two Sessions" suggest a leadership preparing for a more complex era — attempting to balancing slower economic growth, technological competition and geopolitical tensions.

Edited by: Darko Janjevic