by FANG Zhuoran

Shanghai has set an economic growth target of about 5% for 2026, as the city enters the opening year of its 15th Five-Year Plan (2026–2030) and steps up efforts to stabilize demand and upgrade industry.

The target and policy priorities were announced on February 7 after the close of the fourth session of the 16th Shanghai Municipal People's Congress, the city's annual legislative meeting.

To stimulate spending, Shanghai will continue subsidies for consumer upgrades and roll out incentive schemes, alongside 150 million yuan in consumption vouchers to be issued during the upcoming Spring Festival holiday.

Investment will remain a key driver. The city plans to launch major infrastructure projects this year with total planned investment of 255 billion yuan and create more than 600,000 new urban jobs.

Industrial upgrading is another core focus, with advanced manufacturing positioned as the backbone of growth. Artificial intelligence features prominently, with Shanghai aiming to expand smart manufacturing, raise industrial robot adoption and nurture emerging sectors such as commercial space activities.

Officials also highlighted future technologies, including brain–computer interfaces, backed by a 15 billion yuan fund intended to speed up commercialization in advanced technologies.

Despite global uncertainty, the city said it remains a leading destination for foreign investment. Shanghai attracted US$16.06 billion in foreign capital in 2025, accounting for 15.3% of China's total, and hosts more than 1,000 regional headquarters of multinational companies in mainland China. A new round of policies to stabilize foreign investment is expected in the first quarter of 2026.

Officials also outlined measures to address structural pressures, including youth employment and population ageing, through expanded job services, AI-assisted employment services, and policies to develop the "silver economy", services and products aimed at older consumers.