China's new five-year plan calls for AI throughout its economy, tech breakthroughs - Reuters

<a href="https://news.google.com/rss/articles/CBMisgFBVV95cUxOT0xhZFBNRnhPeGVjNWlhSzFobDMtOVoyQWZ6WXJvUk41UUpITFk5am9GczMtX1dGdDQzMlV4RWdmZjVPY3NtMWN1WnB2eUpoRXItcmhYM0pUWktZN2h6bDJTY3A5OWQ3ZUVDQ2FkNHVKVWZPTGZORUt2cWExWmpNVGhqMUtnYXBnaVVjTm9NTkhWcFVTeXpTTVhULUJwU0ZZLWdQakRJYU9WWTc1VGNYajF3?oc=5" target="_blank">China's new five-year plan calls for AI throughout its economy, tech breakthroughs</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

China has set its lowest economic growth target in decades, forecasting a 4.5% to 5% increase for 2026 amid continued domestic and global challenges. Premier Li Qiang announced the target at the National People's Congress, citing a sluggish property market, weak consumer demand, geopolitical risks, and external conflicts impacting supply chains. This follows actual 5% growth in 2025 and marks the lowest target since 1991. The government emphasized continuity over major new stimulus, prioritizing industrial self-reliance and advancements in AI and semiconductors over consumption boosts.

China is set to unveil its priorities for the next five years during the annual political assembly known as the "Two Sessions," which involves the National People's Congress (NPC) and the Chinese People's Political Consultative Conference. The NPC, a largely symbolic body that approves decisions made by the Communist Party, will announce the latest economic goals, including the 15th five-year plan. This plan is expected to prioritize technological independence and economic self-sufficiency in areas like robotics, AI, and renewable energy, while trying to boost domestic consumption amid economic challenges such as youth unemployment, low housing prices, and U.S. trade tensions.

As China's National People's Congress convenes, the country grapples with a slowing economy despite impressive advancements in high-tech sectors like AI and robotics. Structural issues—including a prolonged real estate slump, dwindling consumer demand, and youth unemployment exceeding 16%—have tempered growth expectations. While China reported 5% growth in 2025, experts question its sustainability due to reliance on export-driven manufacturing amidst global trade tensions. Housing market distress, triggered by defaults from overleveraged developers, continues to erode household wealth, constraining consumption. Despite state-backed efforts to dominate future industries such as EVs and semiconductors, the benefits have not sufficiently trickled down to create broad employment.

China will advance and expand its "AI Plus" initiative, promote faster application of new-generation intelligent terminals and AI agents, and encourage large-scale commercial application of AI in key sectors and fields, according to a government work report submitted Thursday to the country's top legislature for deliberation. The country will encourage technological innovations in areas including multi-modal AI, AI agent, embodied AI and swarm intelligence, and explore development paths of artificial general intelligence, according to a draft outline of the 15th Five-Year Plan (2026-2030) also submitted on Thursday.

The National People's Congress (NPC), China's national legislature, held a press conference on Wednesday, one day ahead of the opening of its annual session. Lou Qinjian, spokesperson for the fourth session of the 14th NPC, briefed the press on the session. Responding to a question about how he views China's sci-tech innovation system represented by artificial intelligence, as China's humanoid robots had made a strong impression during the Spring Festival Gala for two consecutive years, Lou said that China will strengthen original innovation and intensify efforts to achieve breakthroughs in key core technologies during the 15th Five-Year Plan period (2026-30), while accelerating the deep integration of technological and industrial innovation and striving for decisive progress in critical technologies across key sectors along the entire innovation chain.