China's Economy Slows: Beijing Admits Lowest Growth Target Since 1990s

• China sets its 2026 economic growth target at 4.5-5%, the lowest since the early 1990s, excluding 2020.
• Premier Li Qiang acknowledges a "grave and complex landscape" with "deep-seated structural problems" facing the economy.
• Investment in housing, manufacturing, and infrastructure declined simultaneously for the first time in three decades, impacting consumer confidence.
• Deflationary pressures persist due to overcapacity and cutthroat price competition across multiple sectors.
• Despite the slowdown, China commits to a 10% increase in its 2026 science and technology budget and a 7% rise in defense spending.