Explained: China unveils next five-year plan: GDP target, tech self-reliance, green push among key highlights

The plan was adopted at the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China on October 23, 2025.

Here are 5 key highlights of the Chinese five-year plan:

China, which is the world’s second-largest economy after the United States, has struggled to recover from the COVID-19 pandemic amid a debt-ridden property sector.

"The household consumption rate will clearly increase, the leading role of domestic demand in driving economic growth will continue to strengthen, and the potential for economic growth will be fully unleashed," the Five-Year Plan, as quoted by AFP, said.

China has set its growth target for the current year at 4.5-5 per cent, which is its lowest rate since 1991, according to AFP research.

After decades of double-digit growth, China’s economy has slowed structurally over the last few years, though it remains one of the world’s fastest-growing major economies. In 2021, it recorded 8 per cent growth, marking a strong post-COVID rebound. In 2022, growth was 3 per cent, while it hovered around 5 per cent in 2023 and ranged from 4.5 per cent to 5 per cent in 2024–2025.

Beijing is investing heavily in high-tech industries, such as semiconductors and artificial intelligence, to reduce its dependence on the United States. The US took centre stage with the introduction of an "AI action plan".

China will also bolster investment in research and development over the coming five years, news agencies reported. The plan calls for full integration of technological and industrial innovation and for innovation to play a more prominent role in driving development.

"The average annual growth rate of research and development investment for the whole society will exceed 7 per cent", while "the capacity for basic research and original innovation will be significantly strengthened", the plan says, as per the AFP report.

The plan specifies that guided by the country's goals of achieving peak carbon emissions and carbon neutrality, it should make concerted efforts to cut carbon emissions, reduce pollution, pursue green development, and boost economic growth.

Remember, China is the largest emitter of greenhouse gases, aims to further reduce pollution. But many Chinese cities still see pollution levels exceeding the World Health Organisation's guidelines, although they have fallen dramatically since the "airpocalypse" days of the past.

The reduction is a result of a years-long campaign by China to improve air quality, which has seen many vehicles electrified and factories moved away from cities.

The plan promises to reduce PM2.5 concentrations in cities at or above the prefectural level to below 27 micrograms per cubic meter.

The average PM2.5 concentration in Chinese cities in 2024 was 29.3 micrograms per cubic metre, according to government statistics.

China will aim to cut carbon intensity, or the amount of carbon emitted per unit of economic activity, by 17 per cent, slightly below the 18 per cent target set the previous year. Actual carbon intensity only fell 12 per cent over the last five years. By focusing only on carbon intensity, emissions can still increase as growth does, Reuters reported.

The plan emphasises the push for secure overseas supplies for the vast quantity of foodstuffs it still imports. China said it would regulate overcapacity in the hog industry and support the dairy and beef sectors, both of which have recently been hit by tariff barriers.

Beijing also said it would improve its export control system, which has caused shortages of critical minerals overseas. For metals more broadly, China's push to expand clean energy may boost copper and aluminium demand via the massive grid build-out, some of which has already been flagged.

China is heavily reliant on imports like copper and iron ore. The plan said Beijing would push for more domestic exploration and mining, but gave no examples.

The plan calls for further unleashing the vitality of the entire nation for cultural creation and innovation, and for enriching the intellectual and cultural lives of our people. There should be a substantial increase in the cohesion of the Chinese nation and the appeal of Chinese culture, and a continued rise in China’s soft power, it reads

"The influence of Chinese culture will be significantly enhanced, and the country's soft power will continuously improve," the plan reads

Chinese creative products have had major international success in the past year. Grimacing Labubu dolls became a global sensation, while Chinese cinema broke box-office records with the animated film "Ne Zha 2".

China's unemployment rate for 16- to 24-year-olds reached a two-year high of 18.9 per cent in August, according to the National Bureau of Statistics cited by AFP.

The Five-Year Plan promises "the growth of residents' income will be in step with economic growth", while "the average years of education for the working-age population will increase to 11.7 years". It also hopes to lift the average life expectancy to 80 years, up from the current 79, according to official statistics.

(With AFP and Reuters Inputs)