Li Qiang Outlines the Direction for Construction in 2026

Policy:

Domestic GDP growth of 5%, with a total increase of 1.4 trillion yuan in investment.

Implement nationwide unified large market construction guidelines, release a new version of the market access negative list, and systematically rectify issues in bidding, tendering, and attracting investment.

State-owned enterprise reform and upgrading have achieved significant results, and additional measures have been introduced to promote private investment and development.

Accelerate clearing bad debt accounts of troubled enterprises.

Urban renewal and rural revitalization:

Urbanization rate rises to 67.9%, with steady implementation of urban renewal initiatives.

In the real estate market, under the 'stabilize and return to stability' policy, the task of 'ensuring delivery' has been fully completed. Housing purchase subsidies have decreased, and pressure on real estate company financial chains has eased.

New quality productive forces:

R&D applications in artificial intelligence, biopharmaceuticals, robotics, and quantum technology lead globally;

Breakthroughs in independent chip R&D, Tianwen-2 initiates its interstellar journey, and BeiDou application scales across all industries;

Launch construction of the Qianhai water power project;

The first domestically produced magnetic levitation aircraft carrier 'Fuxing' officially enters service, and domestic large-scale leading global open-source ecosystem.

Modern industrial system:

Total R&D investment reaches 2.8% of GDP, with technology cooperation transaction value growing by 10.8%.

Accelerated integration of technological innovation and industrial innovation; continuous deepening of transformation and upgrading of traditional industries; rapid development of emerging and future industries; modern services maintain high-speed momentum.

Continuously advance digital transformation in manufacturing and the 'AI+' initiative. The added value of the digital economy accounts for over 10.5% of GDP.

Promote the 'Two Major' and 'Two New' projects:

Strengthen construction of national major strategies and national security capabilities ('Two Major'), and expand the scope of equipment upgrades and consumption replacement ('Two New')

Equipment upgrades drive investment growth in manufacturing; 20 million new energy vehicle charging facilities to be built, laying foundations for new infrastructure fields related to construction.

Green and low-carbon outcomes become evident:

The first batch of 'Jiashan' new energy bases are largely completed; over 13 million kilowatts of new energy storage capacity; non-fossil fuel consumption ratio reaches 21.7%. Key industries push energy-saving and carbon-reduction renovations, providing a foundation for green construction and new energy infrastructure.

1. Macro policy:

Local governments allocate 4.4 billion yuan specifically for special funds, an increase of 500 million yuan from last year, focusing on investment in infrastructure, replacing hidden debts, and clearing bad debts of state-owned enterprises. This means troubled enterprises now have relief funding, and new projects have secured financial support.

Long-term special funds amount to 1.3 billion yuan, with 800 million yuan allocated to 'Two Major' projects and 200 million yuan supporting equipment upgrades. Central budget arrangements for internal investment total 75.5 billion yuan, and policy-based financial instruments will deploy 8 billion yuan, forming a powerful synergy between government investment and social capital.

Reduce local government financing risks: Accelerate the separation of financing platforms from government functions, promote market-oriented transformation, and curb illegal new hidden debt activities. Under tight fiscal management, funds will be more precisely directed toward effective projects.

2. Expand effective investment:

'Two Major' projects: Focus on new quality productive forces, new urbanization, and comprehensive human development, implementing 109 major projects, including national integrated transportation networks, new energy systems, and 23 foundational infrastructure projects.

Private investment guidance: Improve mechanisms for private enterprises to participate in major projects, guiding private capital toward high-tech and modern service sectors. Construction firms can join joint ventures with state-owned enterprises.

3. Cultivate new momentum:

Develop intelligent construction: The report explicitly proposes 'expanding intelligent manufacturing, building a batch of smart factories and intelligent supply chains' and 'developing intelligent construction, cultivating modernized construction industry chains.' BIM technology, construction robots, prefabricated buildings, and smart sites will receive strong policy support.

Infrastructure for emerging industries: Laying the groundwork for low-orbit economy, commercial aerospace, biomanufacturing, quantum technology, wearable intelligence, and 6G requires research centers, testing grounds, data hubs, and dedicated facilities to open up entirely new business domains for the construction sector.

Accelerate new infrastructure: Implement large-scale computing clusters and collaborative computing projects, speed up the development of starlink internet, and build a '5G + industrial internet' upgraded version. Continuous relaxation of demands for data centers, communication stations, and IoT infrastructure remains essential.

4. Deepen reform:

National unified market: Establish nationwide unified market construction standards, regulate bidding and investment practices, and deepen institutional reforms in tendering and bidding. Long-term structural barriers such as regional walls and speculative speculation will be systematically addressed.

Rectify 'internal monopoly' competition: Use tools like capacity control, standard leadership, and price enforcement to foster a healthy market environment. This implies that interconnected relationships and low-price dumping models will no longer sustain, with technology, management, and quality becoming the core competitive advantages.

Resolve bad debt problems: Special funds will primarily target clearing bad debts of state-owned enterprises. Combined with legal and policy support for private economic development, the actual pressure on corporate cash flow will significantly ease.

5. Urban renewal and new-type urbanization:

Urban renewal: Promote high-quality urban renewal steadily, implementing renovation of old residential areas and central villages. Strengthen infrastructure and coordinated management for gas, sewage, heating, and underground pipelines, enhancing urban flood prevention and drainage systems, and completing barrier-free adaptation facilities.

"Good housing" construction: Promote the building of safe, comfortable, green, and smart housing units. Implement quality enhancement projects for new residential buildings, with new construction standards expected to exceed those of current engineering firms.

New-type urbanization: Scientifically promote agricultural transfer population's urbanization, optimize rural infrastructure layout, and develop characteristic rural industries. Prioritize addressing shortages in towns and include many medium- and small-sized projects in public service infrastructure.

6. Rural revitalization and regional coordination:

High-standard farmland and water conservancy: Advance high-standard farmland construction and enhance water conservancy facilities and modern irrigation zones. Soil protection, saline-alkali land comprehensive utilization, and water-saving irrigation projects remain critical.

Rural living environment improvement: Continue improving rural living conditions, resolving issues of village renovation and solid waste disposal, and promoting full-area land consolidation. Rural construction is moving from 'pilot points' to 'general coverage'.

Regional strategies: Support the development of world-class city clusters in the Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Areas; accelerate construction of high-standard new districts; promote ecological protection along the Yangtze River Economic Belt and Yellow River Basin; upgrade Chengdu-Chongqing economic circle; accelerate the western land-sea new corridor. Cross-regional infrastructure, energy, and water projects will continue to be implemented.

7. Green and low-carbon:

Zero-carbon parks and factories: Deeply promote zero-carbon park and factory construction, cultivating new growth points in green construction. Energy-saving renovations, green building materials, and low-carbon technologies will enter mainstream markets.

New energy systems: Accelerate construction of the 'Jiashan' new energy base, develop offshore wind power, and integrate on-site power generation, long-distance transmission, and external delivery. Speed up smart grid construction and develop new energy storage. Grids, energy storage stations, and charging facilities will be deployed simultaneously with infrastructure projects.

Carbon footprint management: Improve carbon emission statistics and accounting systems, and expand the carbon trading market. Carbon monitoring and calculation services may become new business opportunities for construction firms.

8. Real estate stability and basic infrastructure:

Real estate market stabilization: Control housing supply, reduce inventory, and prioritize supply for affordable housing. Accelerate the renovation of dilapidated houses and deepen reforms in housing fund deposit systems. Construction firms can seek opportunities in affordable housing construction and agency services.

Safety infrastructure: Strengthen the fundamental safety level of key infrastructure, complete the three-year action plan for safety production. Accelerate filling gaps in northern flood control and drainage shortfalls, and construct modern water networks. Disaster prevention, emergency response facilities, and water conservancy projects will be priority investment areas.

9. Belt and Road Initiative

Strengthen alignment with national strategies through hard connectivity, soft connectivity, and heart-to-heart connectivity. Promote major landmark projects and small-but-beautiful livelihood projects.

Enhance the development level of the China-Europe and China-Asia rail corridors, and accelerate the construction of the western land-sea new corridor.

1. Bad debt clearance: The 4.4 billion yuan special fund is clearly designated for clearing bad debts of state-owned enterprises. Construction firms’ long-term cash flow pressures are expected to ease. Large state-owned enterprises must continue clearing bad debts, and the operating environment for medium and small construction firms will significantly improve.

2. Beyond special funds, long-term special funds, central budget allocations, and policy-based financial instruments provide multiple funding channels. Investment focuses on transportation, energy, water conservancy, urban management, and other foundational sectors, as well as technology and people’s livelihood projects. Expanded funding sources and improved project execution rates offer stronger guarantees.

3. Smart construction is clearly positioned as a key direction for industrial upgrading. BIM, construction robots, prefabricated buildings, and other technologies will receive greater policy support. Infrastructure for emerging industries like low-orbit economy, new energy storage, and computing centers provides a leapfrog opportunity for construction firms to transition from traditional wood and steel to high-tech integration. Green construction and zero-carbon districts align with the 'dual carbon' trend, nurturing long-term competitiveness.

4. Market environment shifts toward standardized and regulated 'internal monopoly' competition, deeper reform in bidding and tendering, and unified market construction. This indicates a shift from price wars to value-based competition. Enterprises with refined management, technical leadership, and superior performance will command higher premiums. Regional walls will be dismantled, clearing barriers to cross-regional operations.

5. Special funds for recovery: Used to purchase inventory commercial properties, accelerate dilapidated house renovations, and promote 'good housing' projects, pushing the real estate market toward stabilization. With easing financial pressure, some suspended projects may resume, new projects will gradually increase, and construction firms will see positive industry trends.

The 2026 government work report paints a vision for the construction industry—not just short-term stimulus, but long-term support based on urban renewal vitality, new quality productive force-driven growth, national strategic spatial alignment, and green transformation to enhance quality.

For construction firms, it means both guarding the 'basic plate' of urban renewal and major projects, while actively entering new frontiers like intelligent construction, low-orbit economy, and new energy storage. It also means adapting to the new landscape brought by special fund-driven cash flow improvements and the changing rules of fair competition—embracing the need for solid fundamentals, precise management, technical leadership, and compliant operations.

In the future, only enterprises with strong quality, meticulous management, technical edge, and lawful compliance can thrive amid inventory upgrades.

Wishing all construction firms success in 2026—the opening year of the 14th Five-Year Plan—emerging from challenges, seizing opportunities, and pioneering new chapters.

SourceXinPeople's Daily, edited by: Duzhou Management Research Department