China lowers growth forecast, boosts military, citing 'grave' environment

"What we achieved in 2025 was indeed hard won. Rarely in many years have we encountered such a grave and complex landscape, where external shocks and challenges were intertwined with domestic difficulties and tough policy choices."

"China unveiled a highly anticipated five-year national strategy focused on supercharging technological dominance as a core national security priority amid its escalating rivalry with the United States, while also raising its annual defense budget by 7 percent."

China's National People's Congress announced a reduced economic growth target and a 7 percent increase in defense spending while introducing a five-year national strategy prioritizing technological dominance as a core security objective. Premier Li Qiang addressed the gathering, emphasizing China's resilience despite facing a grave and complex global environment marked by weak domestic consumption and geopolitical pressures. The government pledged military modernization ahead of the People's Liberation Army's centenary in 2027 and vowed to crack down on Taiwanese independence supporters. China is preparing economic buffers against U.S. tariff impacts while continuing anti-corruption military purges. The announcements reflect Beijing's strategic priorities for 2026 amid escalating U.S.-China rivalry.

Read at The Washington Post