China aims to tackle deep structural issues head-on in World Economy News 24/03/2026 During the recently concluded two sessions, the country released its Government Work Report. Within the report, the Chinese government signaled a willingness to tackle deep structural issues head-on, chart a new growth model and boost foundations for long-term development. The report comes as China’s economy is entering a pivotal stage in its transition toward high-quality development, against the backdrop of a slowing global economic landscape. Standing at the intersection, the report maintains the familiar policy tone of “seeking progress while maintaining stability” and places greater emphasis on improving efficiency through structural reform and institutional upgrades. Compared with government work reports from 2023 to 2025, the 2026 report reflects a more flexible and forward-looking approach to macroeconomic management. This year’s report sets the GDP growth target at between 4.5 percent and 5 percent, expressed as a range rather than a single figure. The format helps stabilize expectations while giving policymakers greater room to adjust policies if conditions change. The range reflects confidence in China’s growth potential while enhancing policy flexibility amid a complicated global environment. It allows the authorities more space to balance structural adjustments, risk prevention and reform. At the same time, the report stresses that officials will strive for better results in actual work, reinforcing the policy orientation of steady progress while signaling a stronger push toward growth. Such target-setting both anchors market expectations and supports continued improvements in the quality of growth, while keeping the overall economy stable. The 2026 report also places greater emphasis on price stability. Restoring reasonable price growth is now explicitly included as a key objective of macroeconomic management. This aligns with monetary policy guidance that emphasizes promoting stable growth while encouraging a gradual rebound in prices. The policy direction reflects current economic conditions, helping revive demand, stabilize market expectations and guide the economy back toward a healthier level. Together, these adjustments — from growth ranges to stronger coordination between growth and price levels — show how China’s macroeconomic policy framework continues to evolve. The relationship between growth, price stability and structural upgrading is becoming more coordinated, reflecting a governance approach that emphasizes stability, flexibility and long-term quality in the era of high-quality development. Within the broader policy framework of expanding domestic demand, the 2026 report highlights a stronger combination of consumption and investment policies. On the consumption side, 250 billion yuan ($36.25 billion) in trade-in subsidies continues existing support measures. Meanwhile, 100 billion yuan in new fiscal-financial funds aimed at boosting domestic demand creates additional funding channels. Expanded interest subsidies on personal consumption loans also strengthen households’ access to credit. Together, these measures create a multilayered policy system that links fiscal and financial tools and connects supply with demand, helping unlock further household spending potential. On the investment side, 800 billion yuan in new policy-oriented financial instruments will help leverage government funding to attract private capital for maj