China to pursue commercial health insurance to ease public strain, support drug innovation

China's 2026 government work report includes plans to develop commercial health insurance, aiming to supplement the existing public system and support innovation in drugs and medical devices. Premier Li Qiang announced the initiative in response to an aging population and slower government revenue growth, which are straining the basic medical insurance fund. Healthcare expenditure is rising, and the surplus in the basic medical insurance fund has been declining. While basic medical insurance covers over 95% of the population, demand is growing for treatments and services beyond its scope, particularly among middle and high-income individuals. The move is intended to ease the financial burden on the state and better meet the diverse healthcare needs of the population.

As part of China's "two sessions," top economic officials are holding a press conference to discuss the country's economic agenda. The meetings follow Premier Li Qiang's announcement of major economic targets for 2025, including a GDP growth goal of 4.5 to 5 percent. A draft outline for China’s next five-year plan, which will set the country’s policy trajectory for the rest of the decade, was also unveiled. The press conference is expected to cover topics related to the National Development and Reform Commission, the ministries of finance and commerce, China’s central bank, and its securities regulator. Attention is also focused on how Beijing will handle economic relations with the United States, especially with a potential visit from President Donald Trump in the coming weeks.

China's new five-year plan, starting in 2026, prioritizes tax reform to address fiscal strain on local governments. The plan aims to secure more tax revenue while maintaining a "reasonable macro tax burden," shifting from the previous period's focus on tax cuts. Beijing intends to increase central government authority and fiscal expenditures, reducing responsibilities delegated to local governments. This reform seeks to balance revenue generation with the need to avoid overburdening businesses amid economic challenges like a slowdown and deflationary pressures. The government hopes tax reform will address imbalances such as overcapacity and weak consumption. The 2026 budget report also pledges to strengthen fund planning to better meet local needs.

China is shifting its economic strategy to prioritize domestic demand and "investing in people" as its primary growth engine, moving away from export-led growth and heavy infrastructure investment. Premier Li Qiang announced this shift during the National People's Congress, outlining plans to increase fiscal spending on human capital and social safety nets. This strategy, incorporated into the 15th five-year plan (2026-2030), focuses on improving public well-being through increased support for childbearing, senior care, vocational training, and boosting residents' incomes. The plan includes seven livelihood-related goals among its 20 numerical targets, reflecting Beijing's emphasis on the domestic market amid global uncertainties. This marks the first time this slogan has appeared in such a strategic policy blueprint.

China's next five-year plan will prioritize technological innovation, economic security, public well-being, and carbon reduction to achieve its 2035 goal of doubling per capita GDP from 2020. Premier Li Qiang outlined the plan, which includes 20 growth targets across the economy, technology, healthcare, and economic security, similar to the previous plan. The 15th five-year plan includes proposals for 109 major projects, an increase from the previous plan, focusing on technology, modern industries, and public well-being. While a specific five-year GDP growth target was not set, the 2024 target is 4.5 per cent to 5 per cent, with emphasis on improving economic structure and efficiency. The plan aims to modernize the industrial system and achieve self-reliance in science and technology through innovation and breakthroughs in key fields.

At the National People's Congress in Beijing on March 5, 2026, China set a GDP growth target of 4.5 to 5 percent for the year. This target, revealed in a government report reviewed by Xinhua, is lower than previous goals of "around 5 percent" and reflects the country's ongoing economic slowdown. The slowdown is partly attributed to the collapse of the property sector. China aims to shift its economic focus from manufacturing and exports to consumption and advanced technology, while also increasing industrial self-reliance. China also intends to expand defense spending by 7 percent.

China has set a GDP growth target of 4.5-5% for 2026, the lowest since 1991, signaling a shift away from export-led growth. Premier Li Qiang announced the target at the National People's Congress in Beijing, emphasizing "high-quality growth" focused on hi-tech industries and structural reform. This adjustment reflects China's efforts to build a more resilient economy amid challenges like an aging population, property sector issues, and weak domestic demand. The government aims to create over 12 million urban jobs and maintain a 5.5% urban unemployment target. China is also prioritizing financial discipline and boosting domestic demand as part of its economic strategy.

China's "two sessions" highlight a shift from high-speed growth to a more resilient, innovation-driven economy amidst global tensions. The focus is on transitioning away from dependence on external demand and recalibrating the development model. Premier Li Qiang's government work report outlines a vision of slower, steadier growth powered by technology and domestic demand. The 2026 growth target of 4.5 to 5 percent signals economic maturity and a focus on capital allocation, environmental outcomes, and financial stability. Innovation and technological upgrading are central to China's long-term strategy, with increased R&D spending and support for strategic sectors.

China is increasing its diplomatic budget by 9.3% to 70.975 billion yuan (US$10.28 billion) in 2026, the largest increase in three years and the fifth consecutive annual rise. The proposed budget, submitted to the National People’s Congress, outlines plans to expand international financial and economic cooperation and promote global initiatives related to development, security, and governance, including the Belt and Road Initiative. This increase surpasses the 7% rise in the military budget. Analysts suggest this move aims to strengthen China's geopolitical influence amidst growing global instability and a perceived decline in US global leadership.

China's National People's Congress (NPC) is convening in Beijing for its annual legislative session, beginning Thursday and lasting eight days. The meeting occurs just before US President Donald Trump's visit to China. NPC spokesman Lou Qinjian stated that China will not compromise on core principles in its dealings with the United States. Policymakers will set the country's agenda for the year, prioritizing economic resilience amid geopolitical tensions and a global tech race. A key focus will be finalizing the 15th five-year plan for development.

China is set to unveil its priorities for the next five years at a major annual political meeting, known as the National People's Congress (NPC). The event, which takes place in Beijing, marks an important milestone in China's leadership transition and policy-making process. The NPC typically meets once a year, usually in March or April, to review and approve key policies and decisions for the upcoming year. This year's meeting is expected to be significant as it comes ahead of the 20th National Congress of the Communist Party of China, which will elect new leaders. The agenda for the meeting has not been publicly disclosed, but it is likely to include discussions on economic growth, social stability, and national security.

China is set to release its 15th Five-Year Plan (2026-2030) at the National People's Congress (NPC), which began on March 4, 2026, in Beijing. The NPC, China's highest government body, will address economic challenges, including the fallout from the US trade war and stalled consumer confidence. Premier Li Qiang will present the Government Work Report, outlining the past year's economic performance and future growth targets. China is expected to set a GDP growth target of 4.5 to 5 percent for 2026. The NPC runs alongside the Chinese People’s Political Consultative Conference (CPPCC), together known as the “Two Sessions”.

Animal welfare awareness is growing in China, evidenced by a large pet population and strong public support for anti-cruelty legislation. Despite this, national animal welfare laws have stalled due to cultural norms that prioritize human interests and concerns about economic impact on industries like livestock and traditional medicine. This legislative impasse has created divisions between animal rights advocates and opponents. Progress is instead occurring at the local level through subnational regulators and courts, reflecting a bottom-up approach to policy change common in China. This localized experimentation allows for mitigating regulatory shocks before potential national implementation.