China sets lower growth target as tensions rise in Middle East

China opened its annual Two Sessions with a lower GDP growth target for 2026 as Beijing reacts to the U.S.-Israeli strike on Iran and prepares for Trump's visit later this month

Welcome back to What’s Happening in China, your weekly China brief.

Driving the news this week were the opening of the Two Sessions, the concurrent gatherings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), and the U.S.-Israeli attack on Iran and Beijing’s reaction.

At the opening session of this year’s NPC, Premier Li Qiang announced a GDP growth target of 4.5% to 5% for 2026, the lowest in decades. “While recognizing our achievements, we are also clear-eyed about the difficulties and challenges we face,” he said, a reference not only to domestic headwinds but also to a volatile international environment.

While Beijing condemned the use of force and voiced support for Tehran in “safeguarding its legitimate rights and interests,” saying it opposes outside interference in Iran’s ​internal affairs, CNN reported that the U.S. “has intelligence suggesting that China may be preparing to provide Iran with financial assistance, spare p…