The annual session of the National People's Congress began on Thursday in the Great Hall of the People in Beijing. Before about 2,800 delegates, Premier Li Qiang presented the government's work report, which marks a departure from previous growth ambitions. With a target range of 4.5 to 5 percent for the Gross Domestic Product (GDP), the state leadership is reacting to ongoing structural problems such as the crisis in the real estate market and weak domestic consumption.
Despite the economic challenges, the People's Republic plans a massive military buildup. The defense budget for 2026 is set to rise by about seven percent to the equivalent of about 239 billion Euros. This means China continues to have the second-largest military budget worldwide after the USA. In his report, Li Qiang also stressed the intention to resolutely advance the 'reunification' with Taiwan and to resist any form of independence efforts or external interference.
The political agenda in Beijing is being flanked by sharp criticism from Washington. US President Donald Trump described European energy policy and the purchase of Chinese wind turbines as a wrong decision during a press conference. He accused China of exporting these technologies on a large scale while primarily relying on conventional energy sources domestically. Experts contradict this view and point to China's leading role in expanding renewable energies at home and abroad.
