China indicates technological self-sufficiency and the internal market as axes of growth

In an article published in the magazine QiushiChinese President Xi Jinping pointed to technological innovation and strengthening domestic demand as central elements of the country’s economic guidance for 2026, the first year of the 15th Five-Year Plan (2026–2030).

In the text, Xi systematizes the priorities discussed at the Central Economic Work Conference, held in December 2025, and describes the international scenario as “complex and challenging”, marked by the increase in trade barriers and export controls, especially in the technology sector.

According to the Chinese president, the country’s response should focus on strengthening the “structural foundations” of the economy, avoiding short-term stimuli and focusing on medium and long-range planning.

The article reaffirms innovation as the main driver of Chinese industrial modernization.

Xi defends the strengthening of domestic capacity for technological development and the acceleration of the formation of new growth vectors, in line with what the government defines as “new quality productive forces”.

Highlighted sectors include semiconductors, artificial intelligence, next-generation energy and the integration of AI into industrial processes. The emphasis comes amid the tightening of restrictions imposed by the United States and allied countries on Chinese access to advanced technologies, especially cutting-edge chips.

When dealing with innovation, Xi guides policymakers to “understand the main levers that move the entire system”, indicating a focus on areas considered strategic for the country’s economic sovereignty.

Another central axis of the text is the strengthening of the internal market. Xi states that domestic demand will continue to be a priority in building a more resilient economy, with measures aimed at increasing family income and stimulating consumption.

Among the actions mentioned are the increase in basic pensions for urban and rural residents and the formulation of policies to increase family income, in recognition of the impacts of low consumer confidence on economic recovery.

The strategy seeks to reduce dependence on export-based growth, in a context of more restricted access to markets in central countries.

Criticism of predatory competition

The Chinese president also criticizes the phenomenon known as “involution”, a term used in the country to describe excessive and low-quality competition between companies, marked by price wars and compression of profit margins.

Xi defends the action of regulatory bodies to contain practices considered destructive and accelerate the creation of a unified national market, with rules capable of preventing the structural deterioration of industrial profitability.

The article reinforces the need to deepen structural reforms to sustain high-quality development. Xi highlights the importance of active and prudent risk management, especially in the real estate sector and local finance.

Among the measures cited is the expansion of the purchase, by local governments, of unsold commercial properties for conversion into affordable housing, with the aim of reducing inventories and stabilizing prices.

Despite the context of trade tensions, Xi claims that China will not back down from its economic opening policy. The text defends the expansion of cooperation with emerging economies and the diversification of trade channels, including the strengthening of cross-border electronic commerce.

The opening, according to the article, should occur on bases considered more balanced, with less dependence on North American markets and greater integration with countries in the Global South.