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, an official of the Asian Development Bank, or ADB, has said.

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

"Overall, we remain very optimistic about China's growth potential," said Asif S. Cheema, ADB 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."

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

According to Cheema, strengthening the domestic market and expanding household consumption is one of the most critical structural reforms for China's next level of development. A more consumption-driven growth model would not only improve living standards but also support more sustainable economic growth.

One way to unlock that potential, he said, is through stronger social protection systems. 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 also emphasized that China's continued opening-up will remain an important driver of 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 the service sector, an area he believes holds significant potential for deeper opening-up.

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

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 and improve the investment environment for international businesses, he added.

"At a time when there are more and more restrictions and headwinds in global trade, by opening up, China is also setting a very positive example for a rules-based economic system," Cheema said.

jiangxueqing@chinadaily.com.cn