What happened
China's legislature unveiled two economic plans, prioritising a "strong domestic market" for 2026 and long-term technological advancement. The five-year plan targets breakthroughs in artificial intelligence, quantum technology, biotechnology, new energy, semiconductors, batteries, biomedicine, and 6G mobile networks. This push aims for self-sufficiency in critical technologies, driven by US restrictions on advanced technology access, and seeks to transform China into a tech-driven economy. The 2026 growth target is set at 4.5% to 5%.
Why it matters
Increased state-backed competition in critical technology sectors will intensify, particularly from subsidised Chinese exports. Procurement teams and founders in tech should anticipate market disruption as China pours resources into high-tech manufacturing, leading to oversupply and price reductions in areas like AI components and new energy. This follows China's National People's Congress convening amidst economic jitters, underscoring the dual focus on domestic stability and long-term tech dominance.
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