Balancing act: Can China fix its slowdown without losing sight of tech race with US?

Two major economic plans unveiled at the annual meeting of China’s legislature outline top priorities that have different ramifications for the global economy.

- By Ken Moritsugu & Chan Ho-Him The Associated Press

CHINESE President Xi Jinping reacts during the opening session of the National People's Congress (NPC) in Beijing, Thursday, March 5, 2026. AP/NG HAN GUAN

(AP/NG HAN GUAN)

In the government plan for 2026, the No. 1 task is “building a robust domestic market.” Then comes accelerating technological progress. But longer-term, a plan for the next five years gives more prominence to achieving advances in tech.

The subtle difference highlights the government's balancing act. Its overarching goal is to transform from a low-cost manufacturing to a techdriven economy.

But a more immediate concern is dealing with a prolonged period of sluggishness that has depressed consumer and business confidence. China is such a large exporter that the choices it makes affect countries and jobs around the world.

The plans, presented at the recent opening of the National People’s Congress, offer a window into the government's thinking. They are set to be formally endorsed by the rubberstamp legislature at the end of the eight-day session on Thursday.

Tech crucial to China's future