Gasgoo Munich- On March 5, 2026, China opened the fourth session of the 14th National People's Congress in Beijing, where Premier Li Qiang delivered the government's annual work report. The document offered both a retrospective on the country's economic performance in 2025 and a roadmap for industrial development at the start of the next national planning cycle.
Among the sectors highlighted were automobiles, intelligent manufacturing, new energy technologies, and emerging industries—fields seen as central to sustaining China's long-term economic transformation.
According to the report, China's gross domestic product expanded by 5% in 2025, reaching 140.19 trillion yuan. Within that broader economic performance, the automotive sector stood out as one of the strongest contributors to growth.
The numbers underscore the momentum. Output from high-tech manufacturing and equipment manufacturing rose 9.4% and 9.2% year on year respectively—well above the overall industrial growth rate. Production of industrial robots surged by 28%, while integrated circuit output increased by 10.9%.
Perhaps most notably for the automotive sector, annual production of new energy vehicles surpassed 16 million units. Supporting infrastructure has also expanded rapidly, with the nationwide network of EV charging facilities exceeding 20 million units, helping accelerate adoption of electric mobility.
The report also highlighted advances in several technology fields—including artificial intelligence, biopharmaceuticals, robotics, and quantum research—areas where China aims to remain globally competitive. Breakthroughs in domestic semiconductor development and the growing influence of Chinese large-language models in open-source ecosystems were cited as examples of progress.
These technological foundations are increasingly shaping the evolution of the auto industry, particularly in areas such as intelligent driving, connectivity, and digital vehicle platforms.
Next planning cycle: innovation-driven industries take center stage
Looking ahead to the 2026–2030 period—often referred to as the "15th Five-Year Plan" cycle—the report emphasizes the importance of cultivating what policymakers call "new quality productive forces," a concept centered on innovation-led growth and advanced manufacturing.
The draft development outline stresses the leading role of scientific and technological innovation while reinforcing the real economy through a modern industrial system built around advanced manufacturing. Within this framework, policymakers outlined a tiered strategy that distinguishes between "emerging pillar industries" and longer-term "future industries."
Among the emerging pillars targeted for development are integrated circuits, aerospace, biopharmaceuticals, and low-altitude economy. The latter—which includes aerial mobility technologies such as flying cars and drone logistics—has been elevated to the same strategic importance as semiconductors, signaling growing policy support and market opportunities.
Beyond emerging industries, the report also outlined long-term priorities including next-generation energy systems, quantum technologies, embodied intelligence, brain–computer interfaces, and 6G communications.
Notably, "embodied intelligence"—which refers to AI systems integrated with physical machines—was highlighted as a standalone future industry for the first time in such a high-level policy document. The technology is widely viewed as a potential next wave of AI innovation, with implications for robotics, smart manufacturing, and human–machine interaction in intelligent vehicles.
Policy priorities for 2026: boosting demand while accelerating smart and green transformation
As the first year of the new planning cycle, 2026 carries particular policy significance. The report outlines a series of economic initiatives for the year, many of which are closely tied to the automotive ecosystem and related industries.
Stimulating consumption and investment
The government plans to allocate 250 billion yuan in ultra-long-term special treasury bonds to support consumer trade-in programs for goods such as vehicles. The measure is expected to stimulate demand in the auto market.
Another 200 billion yuan will be directed toward large-scale equipment upgrades, a move likely to accelerate production line modernization across automakers and parts suppliers. The report also encourages greater private investment in high-tech sectors and modern services, which could benefit areas such as connected vehicles and battery recycling.
Expanding the "AI+" initiative
The report calls for deeper implementation of the "AI+" strategy, aimed at integrating artificial intelligence across industries. Plans include the construction of large-scale intelligent computing clusters, closer coordination between computing power and energy systems, and expanded public cloud infrastructure.
Upgrades to "5G + industrial internet" networks are also planned, providing essential infrastructure for applications such as autonomous driving algorithm training, smart manufacturing, and vehicle–road–cloud integration.
Advancing emerging industries
For 2026, the government reaffirmed its commitment to expanding emerging industries such as the low-altitude economy while accelerating the development of future technologies including embodied intelligence and 6G networks.
This could lead to faster progress in areas such as regulatory frameworks for flying vehicles, airspace management, and industry standards. At the same time, advances in embodied AI may enable wider deployment of humanoid robots in automotive manufacturing and new forms of interactive in-vehicle digital assistants.
Strengthening the green transition
Environmental targets remain another central pillar. The report sets a goal of reducing carbon emissions per unit of GDP by about 3.8% in 2026.
To support this goal, policymakers plan to accelerate the construction of a modern power system, expand smart grids, scale up energy storage technologies, and increase the use of renewable electricity. These measures could enhance the sustainability of electric vehicles and support technologies such as vehicle-to-grid (V2G) integration. Meanwhile, stricter oversight of energy-intensive and high-emission projects is expected to further push traditional automakers toward electrification and low-carbon manufacturing.
Taken together, the report outlines a coherent trajectory for China's industrial development. From the milestone of producing more than 16 million new energy vehicles in 2025, to strategic planning for the low-altitude economy and embodied intelligence in the next five-year cycle, and finally to policy tools supporting trade-in programs, artificial intelligence, and energy storage, the direction is increasingly clear.
For the automotive sector, the challenge now extends beyond maintaining leadership in electric vehicles. Companies will also need to position themselves early in emerging fields such as aerial mobility and embodied AI. Those that succeed could play a pivotal role in driving China's next phase of high-quality economic growth.
