Warning to Taiwan
Kicking off the new year with a decisive tone, Chinese President Xi Jinping reaffirmed his stance on Taiwan, declaring that no one can prevent the island’s reunification with China. This bold statement, delivered during his 2025 New Year Address, underscores Beijing’s continued focus on asserting sovereignty over Taiwan and sends a clear signal to global powers amid rising geopolitical tensions.
A Direct Warning on Taiwan
Xi emphasized the cultural and historical ties between China and Taiwan, stating, “We Chinese on both sides of the Taiwan Strait belong to one and the same family. No one can ever sever the bond of kinship between us.”
This message follows years of increased military and diplomatic initiatives under Xi’s leadership to push for Taiwan’s reintegration with the mainland. The “One-China” policy remains a cornerstone of China’s diplomatic strategy, and Xi has made reunification a major priority in his third five-year term.
Tensions around Taiwan have grown significantly in recent years, with the U.S. increasing arms sales to the island and supporting its autonomy, further straining China-U.S. relations.
Reassurance on China’s Economic Challenges
Xi also addressed China’s economic challenges, acknowledging the slowdown caused by the COVID-19 pandemic, real estate collapses, and job losses. Despite these hurdles, he highlighted the country’s progress:
- Economic Growth: China’s GDP in 2024 surpassed 130 trillion yuan (USD 18.08 trillion), marking a recovery trajectory.
- Agriculture: Grain output exceeded 700 million tonnes.
- Innovation: China has made breakthroughs in cutting-edge technologies, including electric vehicles (E-Vehicles), artificial intelligence, quantum communications, and integrated circuits. Annual production of new energy vehicles crossed the 10 million mark for the first time in 2024.
However, challenges remain, particularly in the export of E-Vehicles, as the U.S. and EU have imposed heavy tariffs on Chinese imports.
Trump 2.0: A Looming Challenge
Xi’s speech also implicitly addressed the return of Donald Trump to the U.S. presidency. Trump, who will assume office on January 20, 2025, has vowed to impose stricter tariffs on Chinese imports, potentially exceeding 60%.
During his first term, Trump initiated a trade war, imposing tariffs on over USD 380 billion worth of Chinese goods. These tariffs have remained under Joe Biden’s presidency, continuing to affect China’s economic ambitions.
Trump’s campaign rhetoric included accusations against China regarding intellectual property theft, technological espionage, and the origin of COVID-19. Military tensions between the U.S. and China also intensified during his first term, particularly concerning the South China Sea and Taiwan.
Global Implications
Xi’s remarks serve as a reminder of China’s dual strategy of asserting its geopolitical ambitions while addressing internal economic challenges. The Taiwan issue, coupled with deteriorating U.S.-China relations under Trump’s second term, could further escalate tensions in 2025.
This address signals that China is preparing for another phase of global challenges, especially with the potential for renewed trade and military disputes with the U.S.