China is well positioned to sustain steady growth over the next five years, underpinned by rapid advances in technological innovation, a deepening shift toward green and low-carbon development, and continued improvements in people's livelihoods, said a senior official of the Asian Development Bank.

"We remain very optimistic about China's growth potential," said Asif S. Cheema, ADB's country director for China. "We believe the 4.5 to 5 percent growth target is very reasonable. As long as the government's priorities and macroeconomic policies are well coordinated and effectively implemented, there is a strong opportunity for success in achieving this target."

According to the Government Work Report, approved on March 12 at the annual session of China's top legislature, the nation has set an economic growth target of 4.5 to 5 percent for 2026, while pledging to strive for better results in practice.

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A key indicator the ADB will be watching closely is the strength of China's domestic economy, particularly household consumption.

Cheema highlighted that strengthening the domestic market and expanding household consumption represent one of the most critical structural reforms for China's next level of development. An increasingly consumption-driven growth model would not only improve living standards, but also support more sustainable economic growth, he said.

One way to unlock that potential is through stronger social protection systems, he said, adding that measures such as improving pension coverage, lowering healthcare costs and raising overall income levels could help boost household confidence and encourage spending.

Beyond consumption, Cheema said China's transition toward high-quality development will also depend on improving the allocation of resources, increasing investment in research and development, and strengthening links between research institutions and industry to accelerate the commercialization of new technologies.

"From a global perspective, China is playing a major role in green technologies," he said. "Its technological innovation is also contributing significantly to global decarbonization. We believe these innovations can further benefit global and regional public goods through greater international cooperation and knowledge sharing."

Cheema emphasized that China's continued opening-up will remain an important driver for both domestic growth and global trade.

According to the outline of the 15th Five-Year Plan (2026-30) for national economic and social development, China will expand high-standard opening-up of its service sector.

Cheema said there is "tremendous opportunity" for further opening-up in the service sector, particularly in areas such as telecommunications, healthcare and trade. "This creates space for both domestic and foreign companies to play a larger role," he said.

Policies such as narrowing the negative list for foreign investment and advancing the development of the Hainan Free Trade Port could further reduce regulatory barriers, Cheema said. "At a time when there are more and more restrictions and headwinds in global trade, by opening up, China is setting a very positive example of a rules-based economic system," he added.

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Ginger Cheng, CEO of DBS Bank (China), said the country's 2026 GDP growth target sends a clear signal that policymakers are focused on promoting qualitative improvement and reasonable quantitative growth of the economy. "We remain optimistic about the long-term logic of China's growth," she said, noting that the cultivation of new quality productive forces has entered a critical phase, with technologies such as artificial intelligence and robotics demonstrating vigorous vitality.

At the same time, Chinese companies are becoming more sophisticated in their global expansion, Cheng said. Together, these trends are fostering a more transparent and predictable environment for both domestic and international investors, while also creating fresh opportunities for innovation and growth in the banking sector, she added.

Contact the writers at jiangxueqing@chinadaily.com.cn