“China has become one of the fastest growing economies in the world in terms of new capacity,” he said in a televised speech on Wednesday to the country’s 1.4 billion people, in which he praised China’s achievements in large-scale AI models and breakthroughs in chip research and development.

The Chinese leader emphasized the role of innovation in his government’s goal for high-quality economic development and the integration of technology and industry, citing advances in humanoid robots and drones. He also praised China’s progress in aerospace and defense, pointing to the country’s newest aircraft carrier, the Fujianwhich is equipped with a new electromagnetic catapult launch system.

“China has overcome many difficulties and challenges” to meet the targets set out in its 14th Five-Year Plan, Xi said, adding that the country’s gross domestic product is on track to reach 140 trillion yuan ($20 trillion) by 2025.

“Our economic, technological and national defense capabilities, along with our overall national strength, have risen to new heights,” Xi said.

The speech was Xi’s most impassioned New Year’s Eve address in recent years, after his government has overcome many challenges underscore China’s status as a rising global superpower.

The year opened with a surprise breakthrough when Chinese AI started DeepSeek opposed the US chip curbs to release a powerful, affordable model that shocked Silicon Valley and upset Wall Street. Chinese chipmakers have hurry to the IPO market, raising funds that are key to the country’s goal of technological self-reliance and winning the global race in artificial intelligence.

China is also eyeing US President Donald Trump’s renewed trade war, using its dominance of rare lands to secure concessions on tariffs and export controls. China’s cargo has found new homes outside the US, pushing its trade surplus past $1 trillion for the first time – a new record in world trade history.

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Relations between the world’s largest economies have stabilized in recent months after Xi and Trump struck a one-year truce with South Korea in October. Trump is scheduled to visit China in April.

In a further sign of Xi’s confidence in managing relations with Washington, the Chinese leader on Wednesday did not highlight “external uncertainties” as a challenge in his outlook for the new year as he did for 2025. Instead, he noted that 2026 marks the start of the government’s 15th Five-Year Plan and called for a focus on high quality.

“We must remain anchored in our goals, maintain strong faith, and build on our strength,” he said.

Anti-Corruption Drive

Xi also stressed the need to continue his anti-corruption campaign, calling on the ruling Communist Party to enforce strict discipline and promote self-reform to “remove corruption and grow new flesh.” Xi’s widening purge has fired several military generals and investigated a record number of high-level officials for corruption this year.

Despite the triumphant tone, Xi still faces many challenges at home, including many structural weaknesses in the world’s second-largest economy.

On Wednesday, Xi MANILA China is expected to achieve its growth target of “about 5%,” providing a high backdrop to data showing the recovery of the country’s manufacturing sector. Official data released on Wednesday showed the first expansion in factory activity in nine months, with the manufacturing purchasing managers’ index rising to 50.1 in December from 49.2 in November.

But the economy remains weak as the year draws to a close. Investment lost further ground in November, growth in consumer spending slowed sharply and the property sector suffered, reflecting continued weaknesses in domestic demand.

Xi has previously signaled a tolerance for slow growth in some regions and even said recently that China should dismantle “non-stop” projects, emphasizing his focus on the quality, rather than pace, of economic growth.

As in previous years, Xi used his speech to reiterate the stance of Taiwan’s ruling Communist Party. “Compatriots on both sides of the Taiwan Strait are connected by blood thicker than water. The historic trend toward national reunification is unstoppable,” he said, referring to Beijing’s long-standing pledge to bring the self-ruled island under its control, by force if necessary.

Xi’s message to Taiwan came after the People’s Liberation Army’s ended its most extensive training exercises around the island democracy for decades. For two days, Chinese warships and aircraft simulated a blockade of the global chip hub with live-fire exercises surrounding the main island, while dozens of rockets hit waters near its northern and eastern ends on Tuesday.