China’s Two Sessions 2026: Considerations for multinationals

A viewpoint from William Brocklehurst, Managing Partner SEC Newgate China

While much attention is rightly focused on the situation in the Middle East, we saw the conclusion of a major domestic political event in China today. The Two Sessions is China’s most important annual political event; it includes the meeting of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC).

This year’s event also signed-off China’s new fifteenth Five-Year Plan (2026-2030), setting the direction for economic policymaking for the next five years.

Our SEC Newgate China team has outlined the core components of the Five-Year Plan, the implications for multinationals, and what we recommend companies do from here.

Summary of conclusions from the Two Sessions 

Premier Li Qiang's Government Work Report was presented at the meeting and reviewed China’s 2025 economic performance, most notably, its achievement of GDP growth of around 5%. The NPC also endorsed the fifteenth Five-Year Plan outline, which centred on President Xi Jinping’s prioritisation of new quality productive forces through core policy priorities of scientific and technological innovation, green transformation, technological self-reliance, and high-standard opening-up. 

Premier Li’s Work Report also stated that China will “ensure national treatment” for foreign enterprises, meaning they receive the same treatment as domestic companies. China will also implement a new list of industries in which foreign investment is encouraged. These steps aim to increase confidence in foreign companies to reinvest or expand production in China. Li also emphasised that China would strengthen services and support for foreign companies. 

On Hong Kong and Macao, the Report reaffirmed the government’s commitment to "One Country, Two Systems", "Hong Kong people administering Hong Kong" (with a high degree of autonomy), patriots administering Hong Kong and Macao, and efforts to enhance governance efficiency under the law to promote socioeconomic development. 

Analysis of key national priorities, targets and sector-level initiatives 

The Two Sessions provide investors and multinationals with Beijing’s clearest signal on domestic policy, economic priorities, and long-term growth aims. The core priorities outlined in the new Five-Year Plan centred on innovation-driven and resilient sustainable growth, with self-reliance in core technologies for security and an emphasis on quality of growth over quantity. 

Major targets (2026 and fifteenth Five-Year Plan period): 

• Modest GDP growth, with ~4.5-5% expected for 2026 to accommodate structural shifts
• R&D intensity growth ≥7%
• Environmental targets, including ~17% cumulative reduction in CO₂ intensity
• Urban unemployment kept at ~5.5%

Sector initiatives: 

• Banking: Issuance of 300 billion yuan (approximately US$44 billion) in special treasury bonds to recapitalise major state-owned commercial banks.
• Financial services: Standardisation of competition rules across financial institutions, reforms to capital market investment and financing including stronger investor protections, expanded exit channels for private equity and venture capital, and a higher share of direct and equity financing.
• Tech and manufacturing: Development of "new quality productive forces" through original innovation and digital integration, with heavy emphasis on the "AI-Plus" industrial campaign and designated support for pillar industries including integrated circuits, aviation and aerospace, biomedicine, and the low-altitude economy.
• Green transition: Acceleration of energy system modernisation and renewables deployment, targeting approximately 17% cumulative reduction in CO₂ emissions intensity over the plan period, supported by annual R&D growth of at least 7% directed toward clean technology and energy efficiency.
• Consumption: Household spending positioned as a strategic base for expanding domestic demand, with targeted measures to raise consumption capacity through income support, trade-in subsidies for durable goods, and development of new consumption categories including services, elderly care, and digital commerce.
• Opening-up: Expansion of high-standard market access in services sectors and free trade zones, with commitments to equal regulatory treatment for foreign firms and a new encouraged-industry list intended to channel foreign investment toward plan-aligned sectors. 

Considerations for investors and multinationals

The key takeaway for investors and multinationals from the milestone meeting was Beijing’s reaffirmation towards high-level opening-up, “national treatment”, and business environment improvements, with expanded pilots in strategic sectors.

If you would like a conversation around this in more detail, please get in touch with the SEC Newgate China team via contact@secnewgate.hk.