China also stabilized exports and foreign investment with new incentives. Exports for the year grew by 6.1%. Thanks to a new initiative launched to keep foreign investment stable, there was a 19.1% increase in the number of newly established foreign-funded enterprises. Domestic tourism also rose by 16.2% and the number of inbound trips by visitors increased by 17.1%, Premier Li said. He also explicitly mentioned the agreement reached with Washington during the Busan summit between Chinese President Xi Jinping and U.S. President Donald Trump. “Positive outcomes were produced by the five rounds of China-U.S. trade talks, and important common understanding was reached by the two countries’ heads of state during their meeting in Busan, putting China-U.S. economic and trade cooperation on a more stable footing”. Li said that China has promoted efforts to build a “strong scientific and technological nation” in the past year. He added that the country continued to promote the digital transformation of the manufacturing sector and AI initiatives.
China will vigorously promote the integration of artificial intelligence (AI) with manufacturing and accelerate breakthroughs in next-generation AI products in 2026, Minister of Industry and Information Technology Li Lecheng said in an interview after the opening meeting. The Minister said that China possesses a comprehensive industrial system, a large pool of innovation talent, and a continuously improving innovation ecosystem. “We are confident and believe that more world-class intelligent products will be produced on this fertile ground,” he said. In 2026, China will vigorously promote “AI Plus manufacturing,” further tapping the development potential of traditional industries, and stimulating the innovation vitality of emerging industries, Li said.
Premier Li Qiang also said that the external environment is becoming more complex, with rising geopolitical risks, weak global economic momentum, and severe blows to multilateralism and free trade. Domestically, old problems persist and new challenges have emerged in economic development and transformation. The shift from old to new growth drivers remains arduous, supply-demand imbalances are prominent, and market expectations are weak. He said many companies face operational difficulties, employment and income growth have become harder for the public, some local governments are struggling with fiscal imbalances, and the property market continues to adjust. This year’s report put greater emphasis on external threats and the need to build resilience against international volatility and pressure.
The Premier said that Beijing will foster and strengthen emerging and future industries in 2026. State-owned enterprises will be encouraged to take the lead in exploring applications to help foster new pillar industries, including integrated circuits, aerospace, biomedicine and the low-altitude economy. The government will earmark CNY200 billion raised from ultra-long special treasury bonds to support large-scale equipment upgrades. According to the annual work report, a total of CNY755 billion will be earmarked in this year’s central government budget for investment. To encourage spending, Li said some regions will be allowed to introduce spring and autumn school breaks. Consumer rights protection will be strengthened, and a “Shop in China” push will be promoted to encourage inbound spending. Li said the country will nurture innovation and key core technologies. China will continue to increase the proportion of basic research investment and optimize the environment to be conducive to innovation. Authorities will step up enforcement against monopolies and unfair competition to improve the business environment. China will ensure national treatment for foreign-funded enterprises and will implement a new list of industries encouraging foreign investment. This aims to promote foreign companies to reinvest in China and expand production in the country, Premier Li said. He noted that China will enhance services and support for foreign companies. Li earned a round of applause when he said the government will ensure there is enough food, “the rice bowl” of the people. Beijing will redouble efforts to raise grain production capacity by 50 million metric tons. “All localities must fulfill their responsibilities and do their part to keep the country’s rice bowls firmly in our own hands,” he said.
Li said China will expand cross-border use of the yuan and will boost imports to promote balanced trade amid criticism of the country’s trade deficit with other major economies, especially European nations and the fierce trade war with the United States. He also said China will expand trade in intermediate goods and advance digital and green trade. Beijing is ready to advance negotiations to conclude more regional and bilateral trade and investment agreements, the Premier said.
Stabilizing the real estate market is a priority. The government will introduce city-specific policies to control the number of new real estate projects, reduce housing inventory, and improve supply. China will also defuse local government debt risks through proactive local actions, better debt restructuring and placement tools, Premier Li Qiang said.
This overview is based on reports by the China Daily, Global Times, and South China Morning Post.
