China’s new Five-Year-Plan 2026-2030

At the end of October 2025, the Central Committee of the Communist Party discussed the FYP draft at its four-day meeting, adopting recommendations for formulating the 15th FYP. However, these recommendations do not yet constitute the final version of the new FYP. The final plan will be reviewed and approved by China’s highest legislative body, the National People’s Congress, presumably in March 2026.

A framework for societal development

The FYP is not a rigid control instrument and does not contain any specific actions. Instead, it provides a framework to guide the response to public concerns and expectations, while signaling economic stability and resilience to businesses and markets. The objectives are then realized through individual implementation measures.

Below, we provide a brief summary of the key points of the 15th FYP and its implications for foreign businesses. This summary is based on the Central Committee’s recommendations and related public announcements. It is reasonable to assume that these recommendations will largely be reflected in the final FYP. Nevertheless, we will update this article once the final version of the 15th FYP has been adopted by the People’s Congress.

The recommendations demonstrate a commitment to maintaining existing policies and highlight the importance of high-quality growth, technological independence, a resilient domestic market and national security. The pillars of the 15th FYP are therefore to:

• strengthen China’s manufacturing base and industrial supply chains
• drive innovation to achieve independence in critical technologies
• promote domestic consumption
• advance green and low-carbon development
• strengthen national security and defense

Main objectives of the new FYP

The main objectives of the anticipated new FYP highlight several priorities for the future development of the Chinese economy and society. These are outlined briefly below.

Revitalization of the manufacturing industry and modernization of industry

• Strengthening the real economy
• Upgrading traditional industries such as metals, machinery, textiles, etc. through automation, digitalization, and green technologies
• Expanding advanced industries such as aerospace, new materials, and the low-altitude (drone) economy

Technological self-sufficiency and innovation

• Strengthening domestic research and technological autonomy to reduce dependence on foreign technologies
• Focusing on core technologies such as semiconductors, artificial intelligence (AI), robotics, biotechnology, quantum computing and 6G mobile communications
• Unleashing further productive forces to drive growth by integrating innovation more effectively into industrial applications

“Beautiful China”: Green development

• Strengthening sustainability by accelerating ecological transformation
• Expanding renewable energies, electric vehicles and energy storage, while increasing efforts to promote hydrogen and nuclear fusion as the next generation of technologies
• Intensifying efforts in environmental remediation, environmental protection, pollution control, and the circular economy
• Striving for global leadership in green technology

Economic self-reliance and strengthening of domestic consumption

• Retaining the ‘dual circulation’ strategy of remaining connected with the global economy while strengthening domestic economic factors
• Stimulating consumption by increasing household incomes, improving social welfare and reducing social inequality
• Providing supplemental subsidies for certain product categories, such as new energy vehicles (NEVs), household appliances, and certain services

Further opening up and global engagement

• Expanding opening-up with a focus on “high-quality” investments in areas such as telecommunications, biotechnology, healthcare, and education, and in industries consistent with China’s goals
• Creating more free trade zones and concluding more bilateral agreements to attract foreign investment
• Promoting green and digital trade

Social Development and National Security

• Improving living standards, particularly in the areas of education, healthcare, housing, and rural revitalization
• Supporting families through a “birth-friendly” environment
• Strengthening internal and external security and the armed forces

The new FYP (in form of the recommendation) sets ambitious goals. It remains to be seen how these goals will be implemented in practice, particularly given the global implications, such as the trade conflict with the US, various export controls, and third-country reactions to these, as well as the domestic implications, such as the communal debt crisis and the looming threat of deflation, which require short-term measures.

Opportunities for foreign Investors

Despite China’s efforts towards self-reliance, the country emphasizes that it will remain open to foreign investment and ensure favorable conditions for foreign investors. This is particularly likely to apply to areas that align with China’s strategic priorities.

High-Tech and Advanced Manufacturing

• High demand for expertise, technologies and equipment in emerging industries such as biotechnology, renewable energies, electric vehicles, semiconductors, aerospace and artificial intelligence (AI)
• Encouragement of cooperation (e.g., joint ventures, R&D collaboration, etc.) in areas such as life sciences, new materials, renewable energy, digital technologies, and advanced manufacturing

Green technology and sustainable development

• Fostering and encouraging international cooperation in areas such as clean energy supply chains, climate finance and environmental technologies through foreign investment and imports
• Access to rapidly growing markets such as renewable energies, sustainable transport, and green infrastructure, especially solar and wind components, hydrogen production, battery recycling, and environmental monitoring, due to China’s ambitious climate and decarbonization goals

Consumer goods and services

• Increased demand in sectors such as healthcare, education, tourism, entertainment, and e-commerce due to planned boosts to domestic demand and household incomes
• Expected improvements of investment opportunities in areas such as telecommunications services (e.g. data centers, cloud computing), private healthcare, and gradual liberalization of the education and cultural industries

Infrastructure and regional development

• Increasing demands for advanced engineering and technologies due to ongoing modernization in the areas of construction planning, transportation, smart infrastructure, and energy (e.g., smart cities, high-speed rail expansion, telecommunications)
• Specific opportunities regarding the accelerated regional development of the Greater Bay Area, the Yangtze River Delta and the Beijing-Tianjin-Hebei regions

Of course, the above list is only a selection of investment opportunities. Foreign investment will continue to be strategically guided by the Chinese government. Investment opportunities are likely to be more abundant in sectors that contribute to China’s industrial modernization, help address developmental gaps, and align with Beijing’s modernization objectives.