China is set to establish a 2026 GDP growth target of 4.5%–5.0% at the National People’s Congress beginning March 5, reflecting a willingness to trade faster expansion for structural health. Officials will outline measures to revive consumer spending and stabilize a slumping property market as part of the new five-year plan.

The anti-involution campaign is steering industries away from cut-throat price wars toward quality and innovation, with early signs showing solar supply chain prices stabilizing and sector shares hitting two-year highs. Investment is rotating out of internet giants into smaller firms directly tied to AI applications and specialized technologies.

Policymakers plan to issue approximately 1.5 trillion yuan in ultra-long special sovereign bonds, up from 1.3 trillion last year, to fund major infrastructure projects and boost domestic consumption. This fiscal stimulus is designed to inject fresh liquidity into credit markets and support cyclical and property sectors.

Home sales remain depressed, sustaining pressure on developers and financial institutions linked to real estate. Market participants warn of potential policy disappointment if the summit fails to deliver a robust rescue plan for the housing sector.