China's Economic Balancing Act: Navigating Growth Amid Global Slowdown

China plans a 2026 growth target of 4.5% to 5%, acknowledging global economic slowdowns despite a strong trade surplus. Policymakers focus on sustainable growth by leveraging domestic potential, while analysts warn of challenges in maintaining current export levels. The next five-year plan set for unveiling in March.

China is poised to announce an economic growth target of between 4.5% and 5% for 2026, as reported by the South China Morning Post. This decision comes amid a global economic slowdown that even China's $1.2 trillion trade surplus can't offset.

Despite a 5.0% growth in its $19 trillion economy in 2025, largely driven by exports, concerns persist about long-term sustainability. Economists caution that relying on trade to compensate for weak domestic spending may falter as global growth is expected to slow, with IMF predictions indicating a decline.

With these challenges, Chinese policymakers are under pressure to craft a resilient post-pandemic economy. The focus is shifting towards mobilizing China's vast population to maintain growth without resorting to frenetic expansion, aiming to avoid a stagnation akin to Japan's.

(With inputs from agencies.)