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All eyes are on Beijing, as Chinese Premier Li Qian delivers the 2026 government work report at the two sessions.
What does the new economic growth target reveal about China's priorities?
And as China deepens its commitment to opening up, what opportunities lie ahead for global businesses and trading partners.
Welcome to World Today, I'm your sitting host Xu Yawen.
Joining me to unpack China's 2026 government work report and its new five-year plan are Andy Mock, professor at Beijing Foreign Studies University, Liu Baocheng, director of the Center for International Business Ethics at University of International Business and Economics, and Dr Li Pei Mei, Assistant Professor of Political Science at the International Islamic University, Malaysia.
Welcome to the program.
So let me begin by our Chinese guest here, Professor Liu.
Chinese Premier Li's government work report says a GDP growth target of 45 to 5 for 2026 is a range rather than a single fixed number.
And the report says that this target creates space for adjusting structure, preventing risks and promoting reforms.
In your view, why has China chosen a target range this year?
And does this signal a more cautious outlook on the world's second largest economy?
Or is it, as some officials suggest, a more proactive and pragmatic approach?
Your take on it.
I think it's no longer a unique approach for this year because we have already adapted to such a situation where the government report will offer more of the proof print rather than very rigid the quantity of figures.
So the same applies to the GDP growth target.
By 4.5 to 5%, this offers a greater policy flexibility in an uncertain global environment.
Now that is marked by geopolitical tensions, weak external demand and, more importantly, It reflects China's shift from the rigid numerical figures to the quality oriented growth management which allows more room to be more adaptive to specific industries, to specific local government conditions.
So this really does offer a balanced approach with more room for structural reform, including technological upgrading, green transition and also debt control.
Therefore, after all, it is really the confidence of the Chinese policymakers to make sure that China will move forward with high-quality development, with sufficient resilience to remain with a stable growth corridor.
So the number, I mean, the target is not just about the number itself.
It's about buying policy space to focus on the quality and structure of growth.
Then Andy, I think that brings us to the core question here.
If we're growing at this pace, what's the primary engine driving that growth we see in the report.
It says that in a complex and severe external environment, china must persist in the strategic basis of expanding domestic demand, and it also calls for closely integrating benefiting people's livelihoods with boosting consumption, and also investing in physical projects with investing in people.
So here are two questions and I'm going to ask you one by one.
The first will be why building a strong domestic market has become the absolute cornerstone for achieving that 45 to 5 growth target.
Sure.
Well so Yawen, I think.
First of all, I think what we're really talking about here is China's dual circulation strategy.
So where the first wheel is really domestic, and Ultimately, because we know that the role of government, the role of government policies, is to improve the livelihoods of its citizens.
And while consumption is, of course, a very important way to track that, it is not the only way.
So first, let me make that point.
And then when we think about strengthening China's economy from a structural perspective in a very uncertain world.
Obviously, when you can increase different sources of domestic demand, you reduce the likelihood of exogenous shocks disrupting your economic growth plans.
So I think that's the first point.
The second thing, though I do want to mention, that I think is very important and sometimes not completely understood, especially in Western commentary about this objective, is that there's a widely held view that China's consumption is far, far lower than it should be.
And I think that, while we will certainly see improvements in consumption, especially amongst targeted groups in China, say lower income groups, older citizens, et cetera, that that absolutely will happen.
We look at China's consumption as a percentage of total GDP is about, what, 40 percent.
And it's often compared to the U.S.'
's 70 percent as a criticism.
But I want to make a very, very important point here at Gowan.
Even though economists use purchasing power parity to adjust for differences in economies around the world.
For China, that PPP multiple is only about 2, 19 to 2.
But when we actually look at some detailed examples, and let me give you one.
I recently went with a friend to go to the hospital.
She had to do something called an upper GI endoscopy.
So this is basically sticking a tube down your throat to see, you know, is your esophagus, is your stomach okay?
Now, in China...
It was about the equivalent of $30 US for this procedure.
In the US, it can be $1,000 to perhaps more than $3,000.
So here we're looking at a multiple of perhaps 100, up to 100, maybe more.
The second example I would give you is airport transport.
So from Beijing to the Beijing Capital Airport there's an airport express, basically a high-speed train.
It is about the equivalent of 4 US.
That's about a quarter to what it compares to in other parts of the world, say London or et cetera.
So I think we need to really understand this and we are to have a more grounded in reality discussion about the state of consumption in China.
So the point I would make here is one Of course, I think there is room for improvement in the domestic economy through the dual circulation strategy of not just consumption but strengthening manufacturing, distribution and consumption.
And in particular, the links between these three growth drivers.
So I think we can certainly expect that in the years to come.
We will see, of course, more support.
But again, I would say it's very, very important to recognize that the state of consumption in China may not be as dire as many analysts or economists around the world believe it to be.
Professor Liu, I want to hear your thoughts on this.
Andy just gave two vivid examples of Chinese people's consumption in healthcare and in public transportation.
As the government work report also mentions, investing in physical projects with investing in people.
Could you elaborate on what does investing people mean and why is putting money into people's pockets considered as critical as putting money into infrastructure for China's economic development?
Well, Andy provided a very convincing example of the consumption on one aspect, which is the daily expenditures.
But on the other side you also notice that the price for houses, for cars, particularly in these metropolitan areas, are really comparable to that of the developed economies.
So therefore we need to have a more holistic picture about the diversity of the Chinese consumption pattern, consumption preferences and also the type of provisions, both in goods and services, to our people.
So right now, the end point is really to unleaven people's livelihood so as they end rather than at the mean.
So, economically and statistically yes, you can read about the contribution of different growth drivers.
More importantly, it is really how people can really have the sense of entitlement to their contribution.
So that's how the Chinese government is really targeting towards.
So instead of emptying people's pocket and reduce the savings rate, which really very well justified for individual households and also for individual person,
So right now, the target is really how to create an enabling environment to make people to be free of any worry of spending, because people do not really object to the point of conception, but they have their own rational calculations with regard to their fiscal budget within the household.
So therefore, the focus for government will be there to stimulate the employment and also to provide a better healthcare pension funds so that people can really feel more confident in addressing their consumption preferences and also the targets.
And of course, you know, on the provision side or supply side.
So, to better study people's consumption pattern, they can deliver more to the real need of the people instead of, you know, the encouraging the people to trash their car after three years.
That's also quite a waste.
And also, I think the Chinese culture of managing austerity and managing thrifty is something of a value that we should still continue to uphold.
Let's hear voices from Malaysia.
Dr. Li, how is China's economic growth target perceived in Southeast Asia?
I mean this target might seem more moderate compared to the double digit growth in the past, but it would also be among the highest for major economies globally.
So what's your take on that?
Thank you for the question, Yaowen.
Well, I think it's natural that as countries develops, their growth rates actually will decline over the years.
But for China, actually 4.5% to 5% is still a moderate and also a resilient number.
And most importantly, I think it's realistic.
So, like what Yawun has mentioned just now, this is still among you know.
The percentage is still among the highest for major economies.
So for areas in Southeast Asia, We think this is the realistic range set by China, and the range actually provides certain flexibility for policymakers to respond to.
For example, if there is any external factors that causes global instability, the government would have to make certain adjustments to it.
So not giving a fixed rate, but rather giving a set of range, is actually much more flexible and better.
In fact, I think in Malaysia our economy is also projected to grow between that range, like 45 and 5 by some investment bank.
Although our government, we set a lower target of 4 to 5%.
So similarly you can see, like in Southeast Asia countries like Indonesia, slightly expected to grow slightly more at 49 to 57 by its domestic bank.
That's the estimation by the Indonesia domestic bank.
But IMF also set it around 5.1%.
So when you compare this target set by the Chinese government and also the neighboring countries' government, it's actually within a moderate and realistic range.
And I want to add on to say that I think it's true that besides adding jobs for the people.
One way to actually stimulate the economy is to relieve this burden for the Chinese people.
So I would like to point out a few measures that the government said they will come up with, which is very good in making people worry free to spend.
One of the things they do is they help to actually making sure that the child care is subsidized.
And then they also thinking of, you know, giving more subsidies for medical insurance.
And, of course, they also think about adding more money for the people to spend, like raising the minimum basic pension for urban and rural residents.
So these are all important taken together to boost consumption so that China can actually achieve the target growth rates that they set.
We will delve more into people's well-being later in the program.
In the meantime, as both Professor Liu and Andy mentioned the domestic and international dual circulation.
So the government work report emphasizes the goal to smooth the domestic and international dual circulation and make integrated use of global factors and market resources.
In your view, what message does this signal for the world, as it directly addresses fears that the domestic circulation means China turning inward?
And how does strengthening the efficiency and size of China's internal market actually create new opportunities for international partners like Malaysia, and even to the whole ASEAN region?
Yeah.
So indeed, when people talk about domestic circulation, they thought that China is turning inward.
So there is always this concern.
But to be honest, in reality, if you really understand the international dual circulation, it doesn't mean so.
And China understands that it cannot turn inward as in closing door to the outside world.
Because if you look at the history, It has shown that when countries turn inward, the global economy will shrink.
And in the end, you know, everyone will be losing out, just like what happened in the 1920s, when countries become more protectionist and the global economy basically just shrink.
So what we see China is doing is is committed to further opening up its market so that trade and investment will continue to flow smoothly, generating sustained growth for all.
So as you have mentioned just now, China market size is large, right?
And if it's going larger, what does it mean for us in ASEAN?
So Malaysia, for example, we export palm oil to China.
So China now remains our second largest importer of palm oil.
So if a bigger Chinese size market would mean that China can actually consume more of our palm oil and potentially become the largest importer of Malaysian palm oil.
So this is a good news for Malaysian and all the exporters in ASEAN because, looking at the current global situation, countries are now seeking to diversify its trade because of the tariff policy of the US.
So meaning that if China's market is expanding and become more efficient, there could be more products that Malaysia can export to China.
There are more products that ASEAN countries can export to China.
And therefore, if China's market is expanding, it is actually a very good news for exporters in Malaysia or the whole of ASEAN, particularly given the global volatility.
Now let's look into the high-tech sector of the report, professor liu.
For the first time, the government work report introduces this term intelligent economy, calling for a deepening and expanding ai plus initiative to create this adoption of next generation intelligent terminals and agents.
Meanwhile, Minister of Industry and Information Technology, Li Lecheng, elaborated on this vision.
He highlights specific products such as AI computers, AI phones, brain computer interfaces and also humanoid robots.
Could you help us define what the intelligent economy actually means here?
Is this simply a matter of more advanced technology, or does it represent a fundamental change in how economic activity is organized and value is created?
I think that's a great question.
The intelligent economy goes beyond simply technological upgrades.
It represents a new stage of economic organization, both on the institutional level and also on the allocation of those resources.
By introducing intelligence into the economy.
It means that the digital technology will get across the industries, across individual households in their conception pattern, and also more of the smart products and systems, such as AI computers, AI phones, auto vehicles.
The 5D type of movies can be available to people.
So I think, on the base of that, the data driven production and decision making will be there to improve the efficiency and also precision in boosting technology China's high-quality development through the real spillover of innovation.
So in a way a shift from digitization to intelligitization, where machines can really increasingly assist the autonomous performance of complex tasks.
So it is really a new dimension in creating value, combining the data technology and also, I think, more fundamentally, by boosting people's knowledge and skill sets, so that people can be alleviated with hard work and then have more opportunities to learn creative technologies, creative means of addressing the market needs and also their self type of promotion.
So finally, China is now staying at the frontier of the digital technology because in the past years we really picked on the low hand fruits of a global technological advancement.
This is really a decisive movement for China to move ahead and turn out to be at least among, if not the single-handed pioneers in the creation and also in the adaption of the frontier technologies.
Dr Li.
So how does China's five-year plan for this intelligent economy mean for neighboring countries like Malaysia, when Chinese policymakers talk about this intelligent economy as becoming a core pillar by 2030?
That's the end of the 15th five-year plan.
Does this create opportunities for deeper integration with regional supply chains, or does it raise the bar for technological competitiveness?
Well, actually for us it means more opportunities, because our level of development and also technological advancements are different from China.
China, we see it as the leaders in emerging industries like all AI, quantum EVs.
So countries like Malaysia could really benefit from knowledge and tech transfer.
For example, in the past, China has been experimenting with their smart cities pilot projects and has shown very good results.
And now China smart city strategy is a central pillar of the 15 five-year plan.
So for Malaysia, we're also looking to build our smart cities.
So I believe there are a lot of things that we can learn from China, because China has started these smart cities pilot projects way earlier than Malaysia.
And for ASEAN as a whole.
We of course understand that we have to work together with China in improving the resilience of the regional supply chain.
And when China is transitioning into the intelligent economy, it means more opportunity for us and therefore we took the decisions uh asean to upgrade the china asean free trade area, which places the digital economy as a center, last year.
So i would say that it's not necessary that we compete, but our economies can actually complement with one another if arrangements are being made, such as the asean free trade agreement with china.
And in fact, you know, when China is transitioning into a intelligent economy, it is good news for environment.
It's good news for the climate.
So, in other words, it's also good news for everyone, every other country in the world, because the environment will be better protected.
So, for example, smart manufacturing would actually save electricity because it's driven by data automation optimization.
So therefore, you know, saving electricity.
And in fact just now Andy talked about how China is.
You know, understood that they needed a lot of energy for the data center.
Right.
So that I can run smoothly.
And China is not just using traditional, you know, the fossil fuel to power it.
But increasingly, China is focusing on clean energy.
So this is some of the lessons that you know countries like in Malaysia we can learn, because we also are setting up data center here.
We also want to be AI ready.
So by looking at China, how they transitioning into the intelligent, the intelligent economy, we can learn and also benefit from it through cooperation.
You've been listening to World Today.
We've been talking about China's 2026 economic growth targets and the intelligent economy.
Let's take a short break.
When we come back, we will look into people's well-being and China's opening up measures and what it means for global businesses.
Stay with us.
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Let's continue our discussion.
While the intelligent economy isn't just about algorithm or computing power, I think it's ultimately about people, which is also one of the core pillars of this year's government work report on people's livelihoods.
Premier Li's report makes it clear that the high-quality development must translate into tangible improvements in everyday life, from employment, elderly care to support for young families.
And on the employment front, China sets a target this year for creating over 12 million new urban jobs, with a surveyed unemployment rate of around 55.
It also introduces measures to improve the mechanisms for promoting employment and entrepreneurship in response to AI development.
Professor Liu, there is a global anxiety about AI replacing jobs.
The government work report mentions of adapting to AI in the job market is quite striking.
So how do you interpret the government strategy here?
And what does the employment friendly development look like in practice when one of your main goals is to also lead in AI?
I think you have already pinpoint a very stocking paradox in whether the new technology, particularly the digital one, can really replace more of the job opportunities.
Then the unemployment rate will increase.
But the reason I say this is a misconception is that any technology can really assist people's efficiency and also the entitlement to their mastery of such sort of technology in the increased income and also better leader time and better educational opportunities.
So what China has been doing is that by applying those technologies both in industries, in the education, in healthcare and in household management, it can really bring about the benefit of such a sort of technology instead of reducing the job opportunities.
For that we need to get better prepared, that our education will be innovative enough to be able to equip our particularly younger generation with new skill sets, with new vision and new value in engaging with the society, both on economic front and also on a social, coherent.
Second is that we need to create a inclusive environment in which the different level of adaptation to such a revolution in technology across regions, across different generations And there is a specific gap that is there to be fulfilled by the application of such technology, for example, in dealing with Medicare's, because we notice that in hospitals and clinics people are really lining up, you know, for such a sort of service and with enabling of the digital technology, and people can really get better treatment and get better informed.
And then the transparency is also being further enhanced by the usage of technology in the digital frontier, all of which are there actually to aid the productivity and also entitlement of people.
Actually, when people are alleviated more of the labor, both in computing and also in the manual work, and people have more opportunities to get better education, to get better leisure time.
So this is really the sense of entitlement.
So what is really needed is now we need to identify what are those areas that can be differentiated in terms of such sort of application, and also we need the educational reform to enable people to be more creative in using and also in the exploring new frontiers of such sort of technology.
And now Chinese government is very much confident in boosting such digital inclusion, so therefore it is more of a hope and confidence that is laying ahead instead of threat for unemployment.
Andy.
Speaking of people's well-being, Premier Li's government work report sets a few key targets to address this aging society in China.
For instance, raising average life expectancy to 80 years, Increasing the share of nursing-type beds in elderly care institutions to 73.
It also introduces a targeted consumer subsidy program for middle-aged and above disabled seniors.
Many developed nations are still struggling with the fiscal and social pressures of aging populations, and China faces this demographic transition while still being a developing country.
So how do you assess this multi-layered approach to what the report calls proactively responding to population aging?
Well Yaowen, I think that certainly China is facing this aging population phenomenon in a very significant way, just because of the size of the population.
So and I think we also see the legacy of previous policy decisions as well.
So there are fewer younger people to support this cohort of older citizens.
So this certainly is an important structural challenge.
And I think Providing income to certain segments of this subpopulation is very important, of course.
But I think also the Chinese approach is one holistic, and technology, particularly so-called embodied AI, I think will play a very important part of this.
So I think that's one part of the solution.
I would say philosophically.
The other big difference that I can see in how China approaches these problems, as contrasted with perhaps some other countries, is that it's not only very pragmatic, but there's also a level of consideration.
And what I mean here is we look at some of the policies around digitization.
So of course we know, in China today everyone relies on their apps for payment, for booking train tickets, etc.
But many older people are not familiar with, not comfortable with, this new way of interacting with the world.
And what China has very deliberately done is created features on applications that are specifically targeted towards older people.
And you look at if you go to, say, a Chinese hospital.
It is also very, very automated and digitized, but at the same time, they have perhaps what I would call ambassadors.
So humans standing by these machines where you scan your ID card, you make an appointment with a doctor, you pay for your lab test, you have your lab test printed out, etc.
To assist anyone, but I think in particular older people who again might not be comfortable or familiar with this.
So I think you know the way I might contrast how China is approaching a problem, of enormous problem, I would say a situation, because it does present opportunities as well.
Of enormous magnitude, I think, is policy, technology and perhaps for lack of a better word art or a certain personal consideration and empathy for this growing population.
Let me add one point.
I think there is a perceptual issue.
Right now, when Chinese life expectancy is expanding on a very steady basis, to push people to have retirement you know, when they are 50 for women, 55 for women, 60 for men is something that we need to really reconsider the consequence of it.
Because right now, most of the perception is that these people we are talking about 300 million people are really economic burdens.
Actually there are a lot more quote unquote that can be recycled to contribute to economic growth and also for social stability.
So technically, you know, I was born in 1963.
I've already retired.
But even by Karl Marx, work is really the ultimate source of meaning to life.
So how we can really create a sort of environment in which people who are able and willing to work and they continue to engage with economic, social and even political opportunities.
So this is something we really need to reconsider the situation.
If you look at many of those OECD countries, they have already eliminated the compulsory age of retirement in which the employers and employees can really have a free contract in engaging the existing work or creative work.
And so therefore, the other considerations are how to mobilize the senior people to engage with more of the social work, for example, to set up the NGOs to provide more to compensate some of the deficiencies of political or government management in the community level.
So this is something we also need more of an innovative approach instead of focusing merely on technologies, and also in providing catering or care to those senior people.
So they have a lot more residual value that can be unfolded to support our economic growth and also our social resilience.
That's a very good point, professor.
Were you re-employed after retirement?
Because you're still working now, right?
As a professor at the university.
Yeah, for me, I can find ways of creating meaning by writing, by engaging in meaningful discussions, like what we are doing now, and by writing more of the books, and by providing the training opportunities for business leaders, et cetera.
But for many other people who are unable to identify opportunities.
So I think institutionally we need really to create a sort of the social support how to identify their value and how to bridge the gap between the real need and also their skills and, even more importantly, their passion in being part and parcel of the social engine to move forward.
Yes, they can live a meaningful retirement life with sufficient support either from families or the society.
Exactly.
Dr. Li, let me come to you now.
So we have noticed that the report doesn't treat aging in isolation.
It pairs it with what policymakers call one old, one young services.
It mentions strengthening housing support for first marriage and first birth families, improving housing conditions for multi-child families and deepening pilot programs for child care service subsidies to develop affordable child care.
Why is this important to address these two groups, one old, one young together?
I know you're from Malaysia.
I think China and Malaysia were both Asian countries, maybe shared similar values.
And also from housing support to child care subsidies.
What implications might this have for social stability and long-term economic vitality?
Well, I think this is a very important question because, as we know, China is facing what we call rapid decline in birth rate, birth growth rate right.
And it's accelerating an aging population which can cause a situation where there will be labor cost shortages and increased welfare costs.
So by taking care of the old, like what you have discussed earlier with two other panelists, and now about taking care about the young one.
Both are important because we are in the society.
So both must be supported in one or the other way.
But I would like to raise a point about the retired retirees actually for China.
They also think that this retiree, or the seniors, they can actually contribute to the economy in other ways.
So they are thinking about, you know, making civil economy as a top priority for China, where it can actually help to drive growth, meaning that you know the elderly they actually need more services, just beyond the basic one like food and housing.
They will also need leisure entertainment.
They will also need medical devices or even robots to take care of them.
So then they actually can contribute in some meaningful way to the economy.
And, on the other hand, you have this, the young ones, which is those, the measures to boost the birth rate.
So I think what is important is that we understand that the cost of raising a child in China is very costly.
And that's the reason why there are more people, or more couples, that decide not to actually have a baby, even though they're married.
In here the government has come up with finding affordable and reliable childcare services for the parents, so that the parents they can continue to work, and also directly solving the issue of, you know, not enough workers in the market.
If, for example, a mother can work because the self-care services are abundant, affordable and reliable, so definitely the mother would continue to work.
But if, for example, if you have a baby and then you know you can't find affordable childcare services, most often the mother would decide to stay home.
So I think what Chinese government is trying to do is to have the integrated childcare, kindergarten services, meaning that hoping to get that very close either to their home or close to their workplace, so that the parents can continue work at peace.
But I will also want to add on that, you know, besides all these measures like subsidised childcare services and integrated childcare kindergarten services, One of the things that I think Chinese government can do, based on Malaysia's lesson, is that they could also consider making sure the facilities are baby friendly in all parts of China.
Um, for example, more baby changing room nursing room should be built not only in shopping malls, but also metro stations, rest areas in expressway, parks and scenic areas, just to make people feel more convenient, uh to have babies, you know, especially for traveling uh parents um, when they're traveling with their small kids.
Um, if the whole environment is like more baby friendly, I think it will help to boost the birth rate, apart from all the measures the government has.
I think the first and second tier cities here in China are already adopting those baby-friendly measures.
You can see at public bathrooms, where they have specific room for babies to change diapers, but maybe in other smaller cities they need to work on that.
And now let's shift the gears to the final segment of our today's program china's opening up.
Professor liu, let me come to you now.
In today's world, we're seeing rising protectionism And China's government work report emphasized this opening up policy.
For foreign investors, this is extremely important this time.
The report pledges to ensure national treatment for foreign-funded enterprises and expand the negative list for cross-border service trade and actively advance the process of joining high-standard agreements like the DEPA and the CPTTP.
So help us understand what's the tangible difference between this institutional opening up and the previous opening up based on the policy incentives.
And also, what does it mean for the predictability and fairness of the business environment in China?
Yes China, along its history, has the benefit of opening with the rest of the world and also having a hot lesson, or even humiliation, gathered through the closed door.
So now, since 1978, China declared its open-door policy, and over the past decades China benefited a great deal.
However, our institutional setting was pretty much reliant on the policy incentives on the controlled environment, for example the preferential special economic zones and many more pilot programs.
We have been steadily increase the level of opening, with measured steps to attract foreign investment and also to widen our export channels.
And now the high level opening, or institutional opening, will focus more on the more of the consistent and also stable rules, standards and regulatory alignment with the global norms.
As you mentioned, that we are not only important members of WTO.
You know, by taking advantage of the multilateral platform for trade and investment.
We are also the important member within the regional comprehensive economic partnership composed of the 15 members.
We have been actively seeking our membership with CPTPP and also with the deeper digital economic partnership.
So this means that China, through lessons and the successes We learned that only by participating on a larger platform for global engagement we are able to have access to the leading technologies, we are able to add value to our exports, and also by hosting more than 1 million foreign companies that are propped with China.
We also encourage virtuous competition. among both domestic and international firms within China.
This means that we are really there to defend against the rising protectionist sentiment and measures to really implement the equal treatment for different market players and by also the having more of the rule-based platform.
It's not only the rules, but also on the implementation of those principles and basic norms through the mediation and also judicial process, to ensure that we are really having a good governance in the economic management.
So, in the end, what we are looking at is really something one that we respect private property by individual firms and individual people, both for their tangible assets and also for their intellectual property rights.
Second, we are there to provide the equal treatment to different market players, be it private ones, the state-owned ones or foreign ones.
And third is that we are aiming at creating a better level playing field for people, for different market players to compete and cooperate.
But in the end it is really the internationalized, the rule-based platform That's there to give people a high level of predictability and also guarantee to engage into legitimate economic activities and also harvest their economic contributions through the market mechanism.
And the report specifically mentions expanding pilot programs in value added telecommunications, biotechnology and wholly foreign owned hospitals.
It also talks about creating invest in China brands.
And these are very concrete openings.
So why these sectors, the telecoms, biotech and health care markets?
And how does this reflect a shift in confidence, moving from protecting domestic industries to integrating them into global competition to make them stronger?
Well yeah, when I think, first of all, you know, these are very important sectors, strategic sectors, and I think they have definitely reached a level of maturity.
I would not necessarily maybe frame it as a confidence in allowing foreign competition in, but I would say that in fact, because of the importance of these industries really bringing the right talent, the right technology, the right Capital structures, type of capital is very important.
The other part I want to mention, too, is the structure.
Again through pilot programs.
First to sandbox new approaches, new technologies to see how they work before you scale them.
And I think this is very representative of of the Chinese way of governance when it comes to technology diffusion.
And in fact, I just wrote a book about this that is going to be published at the end of the month.
And I do believe that this is really important to point out that the Chinese approach is distinctive.
It's really first not only making specific, uh articulating specific objectives, but making sure that they are achievable uh, the resources are in place, uh the parties that are participating are aligned, and then there is a very clear feedback loop to make sure that any mistakes that are made, any misunderstandings that happen, can be quickly identified and appropriate action can be taken.
And lastly, Dr Li.
The report also mentions high-quality Belt and Road cooperation, moving beyond major infrastructure to include small yet smart livelihood projects and emerging sectors.
From Malaysia's perspective, how has the BRI evolved and how does this new emphasis on small and beautiful projects and digital connectivity resonate with the needs and priorities of Southeast Asian nations?
Well, i think uh, in the past indeed, you know bri favorite mega projects, like we have one project ecrl, in malaysia.
But increasingly we see that there is a need of more high impact and technologically driven projects, which can be small but uh yet uh, they are much more uh meaningful, i would say, and with higher impact.
So um, i think one of the things that china has done in uh like Kyrgyzstan, is that they actually invested and shared the technology to build the first waste to energy power plant, and so this project, indeed it has greater impact to the society because it helps the countries to actually optimize their resources and also protect the environment at this, you know, alongside growth.
So, for Southeast Asian countries, we of course want to transition into a digital and smart economy.
So China's emphasis on this high-quality BRI corporation would definitely benefit a lot.
Like we want to build an AI thinking.
So BRI project that promotes AI adoption in Malaysia will serve our national interest really well.
And in fact you know, when you have a smaller scale projects, it could actually avoid the host country from spending too much money on probably, infrastructure projects, which are mega skill.
That can be something good for the host country because you know in the past, VRI projects are associated with, you know, high debt.
So now, with a small yet smart projects, not only would help us to make more impact to the society, but also would help to lower down financial risk for the host country.
As we have heard from our panelists today, China's 2026 Government Work Report is more than just a set of annual targets.
It's a strategic roadmap for the next five years, focused on high-quality, innovation-driven growth, shared prosperity and a confident embrace of globalization.
The 15th Five-Year Plan is not just China's blueprint.
Its implementation will shape economic and technological trends for the years to come.
I'd like to thank our panelists for a truly insightful discussion.
Andy Mock, professor at Beijing Foreign Studies University.
Liu Baocheng, director of the Center for International Business Ethics at University of International Business and Economics.
Dr Li Peimei, Assistant Professor of Political Science at International Islamic University, Malaysia.
And thank you for listening to World Today.
Bye for now.
Welcome.
I'm Elav Elad, Economics Professor and member of the Data Science and AI Center at New York University, Shanghai.
On the World To prepare for the world tomorrow, join me on World Today.
