Pan Gongsheng: The dynamic balance of the economy and structural transformation are not a matter of constantly "flip-flopping."

(Source: Beijing Business Daily)

Beijing Business Daily News (Reporter Dong Hanxuan) On March 22, People’s Bank of China Governor Pan Gongsheng delivered a keynote speech at the 2026 China Development High-Level Forum. Pan Gongsheng stated that the 2026 government work report and the “14th Five-Year Plan” outline have five features that require special attention.

First, they set scientifically reasonable economic growth targets. From a mathematical perspective, the growth rate is the ratio of annual GDP increase to the total GDP. In 2025, China’s total GDP exceeded 140 trillion yuan, with annual increments equivalent to the size of a medium-sized economy. China needs to maintain a reasonable economic growth rate, but the quality and sustainability of growth are even more important. The government work report sets this year’s economic growth target at 4.5%-5%, leaving more room for structural adjustments and high-quality development.

Second, they focus on transforming the mode of economic growth. The “14th Five-Year Plan” emphasizes high-quality development, strengthening the domestic cycle, and maintaining domestic demand as the main driver. Policies to boost consumption will be implemented, income distribution systems improved, social security systems optimized, and investments and consumption in education, healthcare, and elderly care expanded to significantly increase residents’ consumption rate. The development of the service sector will be vigorously promoted, along with reforms, innovation, and opening-up in services. China aims to accelerate becoming a core global demand market based on its status as a major manufacturing country.

Third, emphasis is placed on technological innovation to drive productivity growth. Technological innovation is a clear and firm long-term strategic choice for China, aligning with global technological revolutions and China’s high-quality development needs. China will continue to promote deep integration of technological and industrial innovation, strengthen intellectual property protection and application, and enhance productivity.

Fourth, accelerating green transformation and sustainable development. China has built the world’s largest renewable energy system and the most complete new energy industry chain, significantly reducing costs for wind and solar power globally. China will continue to develop a green, low-carbon economy, aiming to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, maintaining multilateral climate processes and supporting global green and low-carbon development.

Fifth, further improving economic governance. It is important to scientifically manage and balance the boundaries between government and market, respecting and leveraging the decisive role of the market in resource allocation. Efforts will be made to build a unified national market, create a favorable rule-of-law economic environment, and foster a fairer and more dynamic market environment.

Pan Gongsheng pointed out that the dynamic balance of the economy and structural transformation require medium- and long-term reform plans and commitments, which must be firmly implemented rather than repeatedly “flipping pancakes.” This year, China will implement the 15th Five-Year Plan. Scientifically formulating and continuously implementing the Five-Year Plan is an important experience and institutional advantage in China’s reform and development.