Chinese President Xi Jinping used his National Day speech to project confidence China remains an economic powerhouse, supported by strong manufacturing, technological progress and global trade. Xi’s call for growth, innovation and stability reflects confidence, but recent figures reveal an uneven economy. August retail sales rose just 0.4 per cent, signalling weak consumer demand. Industrial output grew 5.2 per cent, although the gap between strong production and limited spending remains worrying. As China prepares its next development plan, economic ambitions must also address people’s wellbeing. Lasting progress requires respect for human rights, protection of minority communities and serious attention to their legitimate concerns. National strength should be measured by both economic achievement and the dignity citizens enjoy.
Focus on Economic Growth
A major theme of Xi’s address was the need to maintain economic momentum. He said China’s economy had continued to move forward despite pressure and was shifting toward new growth drivers and higher quality development. China has entered the first year of its 15th Five-Year Plan which covers the period from 2026 to 2030. The plan is particularly important as Beijing seeks to strengthen advanced industries and improve its position in global technology competition. I called on officials to meet the country’s economic targets for the year and ensure a strong beginning to the new five-year period. His remarks came as China faces concerns over weak domestic demand, employment pressures and slower investment and consumption.
Technology and Innovation
Technology remains at the centre of China’s long term economic strategy. Xi stressed the importance of innovation as the country seeks to build stronger industrial and technological capabilities. China is placing particular attention on areas such as artificial intelligence, biotechnology, life sciences and controlled nuclear fusion. These efforts are also connected to the broader competition between China and the United States over advanced technologies. Despite recent improvements in US-China relations following Xi’s meeting with US President Donald Trump, competition between the two countries remains significant. Artificial intelligence has emerged as one of the most sensitive areas with Washington seeking to protect its technological advantage while Beijing continues to expand investment and research.
Xi’s emphasis on innovation reflects China’s ambition to strengthen its economy and reduce dependence on foreign technology. Yet this ambition is shadowed by longstanding intellectual property concerns. US trade reports have criticised copyright piracy, weak enforcement and pressure on foreign companies to transfer technology. American courts have also convicted individuals of stealing trade secrets for Chinese interests. Patent infringement and theft of confidential research raise distinct legal issues, but both can undermine trust. China’s technological progress should therefore rest on original research, fair competition and respect for intellectual property, alongside action against documented abuses.
Taiwan and National Unity
Xi also maintained Beijing’s firm position on Taiwan. He repeated China’s opposition to what it describes as Taiwan independence forces and external interference. At the same time he called for peaceful development of cross-strait relations and progress toward national reunification. This wording was notable because the same emphasis on peaceful development was absent from his National Day speech the previous year. Taiwan remains one of the most sensitive issues in relations between China and the United States. Beijing claims sovereignty over Taiwan and has not ruled out the use of force while Washington opposes any attempt to change the status quo through force and continues to provide defensive weapons to Taiwan.
Hong Kong and Macau
Xi reaffirmed Beijing’s commitment to “one country, two systems” and urged closer economic integration with Hong Kong and Macau. Yet promises of prosperity leave a central question unanswered: how much say do residents have in their political future? Hong Kong’s John Lee and Macau’s Sam Hou Fai were each elected by committees in contests with only one candidate. Ordinary residents had no direct vote for their leaders. Such tightly controlled elections raise doubts about meaningful democracy. Lasting prosperity should give people a genuine political voice alongside economic opportunity.
US-China Relations
The speech also came at a significant moment in US-China relations. Xi’s recent visit to the United States and commitments for further meetings have created an opportunity for dialogue between the two countries after years of intense tension. The leaders are expected to meet again at the Asia-Pacific Economic Cooperation summit in Shenzhen in November and at the G20 meeting in Miami in December. However improved diplomatic communication has not removed the deeper competition between Washington and Beijing. Disputes over technology trade and artificial intelligence remain major challenges. The two sides may continue to engage while simultaneously protecting their strategic interests.
The Road Ahead
Xi’s speech can be read as carefully scripted political positioning ahead of the Communist Party’s expected 2027 congress. His calls for stability and confidence present his leadership as essential to China’s future, potentially laying the groundwork for a fourth term as party leader. The fifth plenary session, scheduled for October 26–29, will focus on party governance and discipline. That agenda could also help Xi tighten his grip on the CCP and reinforce loyalty within its ranks. His message therefore carries a possible political purpose alongside its economic promises: strengthening his authority before the party’s next leadership selection.
Conclusion
Xi Jinping’s National Day speech combined confidence with a recognition of the challenges confronting China. Economic growth, technological innovation, political stability and national unity were central themes.
China faces pressure from weak domestic demand and employment concerns while competition with the United States continues in areas such as artificial intelligence and advanced technology. At the same time Beijing is attempting to create a more stable external environment through continued diplomatic engagement. Xi’s call for confidence and steady progress therefore comes at an important moment for China. As the country begins its 2026 to 2030 development plan and prepares for major Communist Party discussions, the coming months will show how effectively Beijing can translate its emphasis on resilience and innovation into stronger economic performance and continued stability.
