BEIJING (AP) — China has set an economic growth target of 4.5% to 5% for this year, a slight decrease in the face of a prolonged property slump and other headwinds and uncertainty abroad.

The target was announced Thursday in an annual report being presented by Premier Li Qiang at the opening session of this year's meeting of the National People's Congress. The report set the goal and added “while striving for better in practice.”

The target was lowered from about 5% in each of the last three years. The economy grew 5% in 2025.

“While recognizing our achievements, we are also clear-eyed about the difficulties and challenges we face,” the report said.

It noted rising geopolitical risks and said that free trade is under severe threat. China's exports to the United States have been hit by tariffs imposed by President Donald Trump, though it has expanded exports to other parts of the world.

Domestically, the report highlighted an “acute” imbalance between strong supply and week demand and the challenge of transitioning the economy to new drivers of growth.

“At home, we still face quite a few problems and challenges, both old and new,” the report said.

This year’s meeting of the 3,000-strong rubber-stamp legislature will also endorse a five-year plan setting policy priorities until 2030.

Setting a range for growth of 4.5% to 5% gives the government more leeway to adjust policies this year.

“In proposing these targets, we have considered the need to leave some room for structural adjustments, risk prevention, and reform in the opening year of this five-year plan period, so as to lay a solid foundation for delivering better performance in the coming years,” the report said.

It included pledges to build a stronger domestic economy while also furthering Chinese leader Xi Jinping's ambitions to build China into a global leader in technology.