China’s Two Sessions 2026: considerations for multinationals

 The 2026 Two Sessions (“全国两会”) meeting 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 Two Sessions agreed China’s 15th Five-Year Plan (2026-2030), outlining a strategic roadmap for economic development amidst domestic challenges and external uncertainties. This note summarises the meeting’s key conclusions, analyses national priorities and sector initiatives, and outlines considerations for investors and multinationals. 

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 clearly its achievement of GDP growth of around 5%. The NPC also endorsed the 15th Five-Year Plan outline, which centred on President XI Jinping’s prioritisation of new quality productive forces (“新质生产力”) through core policy priorities of scientific and technological innovation, green transformation (“绿色转型”), technological self-reliance (“科技自立”), and high-standard opening-up (“高水平开放”). 

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 high degree of autonomy), patriots administering Hong Kong and Macao, and efforts to enhance governance efficiency under the law to promote socio-economic 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 15th 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. Within that context, the main considerations would be: 

• Sector-specific market access: The proposed “national treatment” and encouraged-industry list arguably show a new effort for China to again be more receptive to foreign capital and business in specified sectors. However, variants of these phrases have been heard by foreign investors many times before and the real test will be in whether foreign direct investment, partnerships, and on-the-ground expansion is meaningfully made simpler. 
• Consumption policy expansion: The push to lift household consumption could help create upside for consumer-facing multinationals in supported sectors. With consumer confidence fundamentally weak and price growth essentially flat in 2025 in China, the government continues to face major challenges to stimulate domestic consumer demand. 
• Hong Kong outbound gateway role: The territory’s formal designation as the “primary gateway” for mainland enterprises going global could further generate demand for professional services as additional outbound M&A and overseas IPOs are channelled through Hong Kong. 

What companies should do from here 

The 15th Five-Year Plan sets the policy direction shaping China’s domestic priorities and operating environment through to 2030. Companies looking to invest or enter in the Chinese market should: 

• Assess China positioning: Companies that align their plans with national priorities such as technology innovation, sustainability, and high-quality development will find it easier to build government relationships, attract partnerships, and follow through on market entry plans. 
• Monitor implementation: The Five-Year Plan’s practical impact will emerge in sector and province-specific regulations, subsidy rollouts, and local-level programmes over the coming months and years. Systematic tracking of these developments will be needed at the sector and province level. 
• Identify entry points: The Five-Year Plan’s sector priorities and provincial implementation timetables are a map for policy support and public funding. Companies that align their on-the-ground presence with these timelines will be better positioned to secure access, incentives, and local government backing for investments or business expansion plans. 

For additional briefing on the Government Work Report, sector-specific implications of the 15th Five-Year Plan, or Hong Kong-Mainland dynamics, please get in touch with the SEC Newgate China team via contact@secnewgate.hk.