Xi Jinping strikes bullish note on China's economic prospects ahead of Lunar New Year

Chinese president Xi Jinping highlighted the challenges the country faces in light of Donald Trump’s return to the White House this year while speaking at a reception in Beijing. The Chinese president’s speech called for addressing “risks and challenges without hesitation.” Despite acknowledging recent difficulties, Xi struck an optimistic tone regarding the economy.

Xi Jinping on China’s economic prospects

The Chinese president expressed confidence in the country’s economic outlook, despite a fragile recovery following the coronavirus pandemic. Xi noted that China has “stepped up efforts to push a basket of incremental policies to promote economic recovery,” as reported by AFP.


He emphasised the importance of resilience to achieve “high-quality development” and stated that “hard work and struggle” would be critical in overcoming obstacles.

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Xi Jinping on China’s next five-year plan

Xi also discussed the upcoming five-year plan, which will shape the country’s economic direction from 2026 to 2030. The president announced that proposals for the plan would be drafted this year.

The commitments to modernise the country under the 2026–30 five-year plan were made during the third plenum in July last year, according to the South China Morning Post. These objectives are expected to be achieved by 2029, coinciding with the 80th anniversary of the founding of the People’s Republic of China.

Xi Jinping on the anti-corruption campaign

The Chinese leader pledged to advance the country’s long-standing anti-corruption campaign. Last year, 56 high-ranking officials at the vice-ministerial level or above were investigated for graft. Anti-corruption agencies have intensified efforts to address corruption across various sectors, including the military, sports, and healthcare.

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FAQs

1) What problems has China’s economy been facing?
In 2024, China’s economy grew at 5 per cent, marking its lowest increase since 1990, if the pandemic years are excluded. Youth unemployment, a drop in domestic consumption, local government debt, declining birth rate and a property sector crisis have slowed down economic growth.

2) What effect could Donald Trump have on China’s economic prospects?
Donald Trump’s threat of tariffs can adversely impact China’s economy. The US President has also announced plans to counter Beijing’s strength in artificial intelligence by increasing investment in the sector.