President Xi Jinping highlighted China’s achievements in artificial intelligence and the chip industry in a triumphant New Year’s Eve speech as he called for more confidence in the country’s development path in the year ahead.

“China has become one of the world’s fastest-rising economies in terms of innovative capacity,” he declared in a televised address on Wednesday beamed to the nation’s 1.4 billion people, in which he touted China’s achievements in large AI models and breakthroughs in chip research and development.

The Chinese leader underscored the role of innovation in his government’s aim for high-quality economic development and the integration of technology and industry, citing the advancements in humanoid robots and drones. He also touted China’s progress in aerospace and defense, pointing to the country’s latest aircraft carrier, the Fujian, which is equipped with a new electromagnetic catapult launch system.

China had “overcome numerous 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) in 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 upbeat New Year’s Eve address in recent years, coming after his government overcame a multitude of challenges to underscore China’s status as a rising global superpower.

The year opened with a surprise breakthrough when Chinese AI startup DeepSeek defied US chip curbs to release a powerful, low-cost model that stunned Silicon Valley and rattled Wall Street. Chinese chipmakers have rushed to the IPO market, raising funds that are key to the nation’s goal of technological self-reliance and winning the global race on artificial intelligence.

China also stared down US President Donald Trump’s renewed trade war, wielding its dominance over rare earths to extract concessions on tariffs and export controls. Chinese shipments found new homes outside the US, pushing its trade surplus beyond $1 trillion for the first time — a new record in global trade history.

data-srcyload

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

In a further sign of Xi’s confidence in handling 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 had done 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 development.