Relations between the largest economies stabilize after Xi and Trump agree to a one year truce before April China visit.
President Xi Jinping used his New Year address to hail China’s advances in artificial intelligence and semiconductors, striking a confident tone as the country positions itself as a rising global technological power. Speaking in a televised address to the nation’s 1.4 billion people, Xi said China had become one of the world’s fastest rising economies in terms of innovative capacity, citing breakthroughs in large AI models and chip research.
Xi said China was on track to meet the targets of its 14th Five Year Plan, with gross domestic product expected to reach about 140 trillion yuan, or roughly $20 trillion, in 2025. He said the country had overcome numerous difficulties to lift its economic, technological and national defence capabilities to new heights.
The Chinese leader highlighted progress in humanoid robots, drones, aerospace and defence, pointing to the launch of the Fujian aircraft carrier equipped with an electromagnetic catapult system. He said innovation was central to his government’s push for high quality development and deeper integration between technology and industry.
The upbeat address follows a year in which Chinese AI startup DeepSeek surprised global markets by releasing a powerful low cost model despite US chip curbs. Chinese chipmakers have since accelerated fundraising through stock market listings to support Beijing’s drive for technological self-reliance.
Xi also pointed to stabilising ties with the United States after a one year truce agreed with President Donald Trump in October. Trump is due to visit China in April.
Despite the confident tone, Xi acknowledged ongoing domestic challenges, including weak investment, slowing consumer spending and continued strains in the property sector.
