In a notably optimistic New Year's Eve address, Chinese President Xi Jinping spotlighted the nation's significant progress in critical technological fields, including artificial intelligence and semiconductor manufacturing. The speech, broadcast to China's 1.4 billion people, marked one of his most positive year-end messages in recent times, projecting confidence in the country's development trajectory.
Technological Triumphs and Economic Milestones
President Xi declared that China has become one of the world's fastest-rising economies in terms of innovative capacity. He specifically pointed to achievements in developing large AI models and securing breakthroughs in chip research and development. The integration of technology and industry was a central theme, with Xi citing advancements in humanoid robots, drones, and aerospace.
He also highlighted the country's latest aircraft carrier, the Fujian, which is equipped with a new electromagnetic catapult launch system, as a symbol of enhanced national defense capabilities. On the economic front, Xi stated that China had overcome numerous challenges to meet the targets of its 14th Five-Year Plan, with the country's gross domestic product on track to reach 140 trillion yuan (US$20 trillion) in 2025.
Navigating Global Challenges and Trade
The past year saw China achieve several strategic victories despite external pressures. Xi's speech came after a year where Chinese AI startup DeepSeek made a surprise breakthrough, releasing a powerful, low-cost model that defied U.S. chip restrictions and impressed global tech circles. Simultaneously, Chinese chipmakers aggressively entered the IPO market to fund the nation's push for technological self-reliance.
China also managed a record trade surplus beyond US$1 trillion, a first in global trade history, by finding new markets for its exports outside the United States. This occurred even as the country navigated a renewed trade war with the U.S. under President Donald Trump, leveraging its dominance in rare earths to gain concessions.
A Confident Outlook and Domestic Focus
Strikingly, Xi's address did not emphasize "external uncertainties" as a primary challenge for the coming year, a shift from his 2025 outlook. This reflects a stabilized period in relations with Washington following a one-year truce struck with Trump in October and an upcoming scheduled visit by the U.S. president to China in April.
Looking ahead to 2026, which marks the start of the government's 15th Five-Year Plan, Xi called for a continued focus on high-quality development. "We must remain anchored to our objectives, maintain firm confidence, and build on our momentum," he urged the nation. He also reinforced the need to continue his signature anti-corruption campaign, calling for the Communist Party to enforce strict discipline to "remove decay and grow new flesh."
The overarching message was one of resilience and forward momentum, underscoring China's perceived ascent as a global superpower built on technological prowess and economic strength.
