Chinese President Xi Jinping struck an optimistic note on Monday in a speech addressing the nation’s top Communist Party officials ahead of the Chinese New Year celebrations. Speaking about the challenges that China has faced over the past year, Xi acknowledged the “complex and severe situations” encountered but expressed confidence in the country’s ability to overcome obstacles and achieve economic recovery.
The speech comes as China prepares to celebrate its most significant public holiday, running from January 28 to February 4, during which citizens across the nation will bid farewell to the Year of the Dragon and welcome the Year of the Snake. The festivities, usually marked by family reunions, traditional meals, and colorful displays of fireworks, take place amid a backdrop of economic uncertainty and a sluggish post-pandemic recovery.
Xi’s speech addressed the country’s ongoing efforts to rebound from economic stagnation, compounded by the COVID-19 pandemic’s lingering effects. In 2024, China’s economy grew by a modest 5 percent, its slowest growth rate since 1990, excluding the pandemic years. Key factors weighing down the recovery include a property sector in crisis, persistently low domestic consumption, and alarmingly high levels of youth unemployment.
Beijing has introduced a series of aggressive measures to reignite growth. These include cutting key interest rates to encourage borrowing, easing local government debt burdens, and expanding subsidy programs for household goods to stimulate consumer spending. However, the results have been mixed, with experts cautioning that the recovery remains uneven and fragile.
“Over the past year, in the face of complex and severe situations, we have responded to events with composure, implemented measures comprehensively, overcome difficulties, and pushed each other to forge ahead,” Xi told party officials.
Xi emphasized the importance of perseverance and collective effort, calling on citizens to work toward the long-term goal of “national rejuvenation.”
“We have again proven that with hard work and struggle, no difficulties or obstacles can stop the Chinese people from pursuing a better life, or … the historical process of national rejuvenation,” Xi said.
The leader also highlighted Beijing’s incremental policy adjustments aimed at supporting economic recovery, signaling confidence in the resilience of China’s economy despite external pressures and internal challenges.
China’s economic trajectory in 2025 may also face headwinds from external factors, including the potential escalation of trade tensions with the United States. US President Donald Trump has threatened to increase tariffs on Chinese goods, accusing Beijing of engaging in unfair trade practices. Should these measures materialize, they could further strain China’s export-driven sectors, which are already grappling with slowing global demand.
Experts warn that boosting domestic consumption is critical to offsetting these external uncertainties. While the government has implemented policies to encourage spending, structural changes in consumer behavior post-pandemic and lingering caution among households continue to pose significant challenges.
Despite the economic uncertainties, many citizens remain cautiously optimistic about the coming year. In Beijing’s historic center, where a frozen lake served as a scenic backdrop for ice skaters and revelers, travelers shared their hopes for a better future.
Zhong Haiping, a 27-year-old trader from Guangdong province, expressed confidence in China’s openness to trade.
“Now China’s policies toward export and trade are very open,” Zhong said. Reflecting on her personal goals, she added, “I aim to conquer some difficulties at work in the coming year, but I hope the Year of the Snake will be better than the Year of the Dragon.”
Similarly, 25-year-old Li Boxuan, a student visiting from Xi’an, voiced aspirations to find meaningful employment despite the country’s high youth unemployment rate.
“I should graduate next year, so I hope I can find a suitable job,” Li said. “I hope I can progress together with our country, and we can both realize our dreams for the future.”
The Chinese New Year holds a special place in the hearts of citizens, not just as a cultural tradition but also as a time for renewal and hope. For many, it serves as a reminder of the country’s enduring resilience and ability to overcome adversity.
The celebrations are expected to bring a temporary boost to the economy, with millions traveling across the country to reunite with loved ones and increased spending on holiday-related goods and services. However, experts caution that this short-term uptick may not be enough to address the broader structural challenges facing the economy.
As China steps into the Year of the Snake, the road ahead remains fraught with uncertainties. While the government’s measures to stabilize the economy have shown promise, sustained recovery will require addressing deeper issues, such as improving household incomes, fostering innovation in key industries, and creating job opportunities for young people.
The international landscape also poses significant challenges, with potential trade tensions and shifting global markets likely to test Beijing’s economic strategies. However, Xi’s speech reflects the leadership’s determination to confront these issues head-on, with a focus on unity and resilience.
For ordinary citizens like Zhong and Li, the Year of the Snake symbolizes hope and the possibility of overcoming personal and collective challenges. As fireworks light up the skies and families gather for festive meals, the spirit of renewal and perseverance will undoubtedly carry China into the new year.
