"Our economic strength, scientific and technological abilities, defense capabilities, and composite national strength all reached new heights," Chinese President Xi Jinping said in his 2026 New Year's address.

2025 has turned into a year in which China has kept growth on a solid footing, advanced its transition to high-quality development, and moved decisively to position itself as a stabilizing force in a fractured international system through long-term planning and new initiatives.

Resilient economy against weak global recovery

Against the backdrop of geopolitical tensions and a weak global recovery, the Chinese economy has shown signs of resilience, while others struggle to avoid stagnation. "Our economic output has crossed thresholds one after another," Xi said on Wednesday.

Posting 5.2 percent GDP growth in the first three quarters, China is on a solid trajectory to meet its full-year growth goal of about 5 percent, with total output forecast to reach 140 trillion yuan (roughly 19.87 trillion U.S. dollars), underscoring its continued position as the world's second-largest economy.

What matters is not just that the economy expanded, but how. Against economic headwinds, domestic demand has taken up more of the baton, and consumption has become a stronger driver of GDP.

According to official figures, China's retail sales of consumer goods in the first 11 months rose 4 percent compared with a year earlier, while service spending expanded even more rapidly, with categories such as culture and sports, as well as telecommunications and information services, recording double-digit gains in sales over the same period.

The more significant shift in 2025 is qualitative. The numbers point to a clear pattern: high-tech manufacturing and new quality productive forces are outpacing other industries, with sectors such as artificial intelligence, new-energy vehicles, advanced machinery, and green energy infrastructure becoming genuine engines of expansion.

DeepSeek, an AI model for instance, made an impressive debut this year by matching – if not surpassing – the capabilities of leading global models, all while using far less computing power.

By reducing dependence on foreign technology chokepoints and climbing up the value chain, China is trying to inoculate itself against external pressures while continuing to offer the world competitive, increasingly green products. This year, China entered the top 10 of the Global Innovation Index, cementing its place as one of the world's most rapidly advancing innovation powerhouses over the past decade.

"We met the targets in the (14th Five-Year) Plan and made solid advances on the new journey of Chinese modernization," Xi said in his speech.

The emerging priorities of the 15th Five-Year Plan (2026–2030) are telling: building a modern industrial system anchored in the real economy; accelerating self-reliance in science and technology; and expanding domestic demand. That triad signals a conscious attempt to fuse productivity, security, and social justice into one narrative.

For foreign observers, it also sends a clear message: China's opening-up will continue, but on the foundation of stronger indigenous innovation, stricter environmental standards, and a larger, more sophisticated home market.

"We continued to embrace the world with open arms," Xi stressed.

For instance, in December, China initiated special customs operations across the entire Hainan Free Trade Port (FTP) – the largest of its kind globally – aimed at easing the import of foreign goods, broadening zero-tariff policies, and rolling out measures to enhance the business environment. The initiative is widely regarded as a milestone in China's push to advance free trade and pursue high-level openness amid growing global protectionism. 

The global context of 2025 is hardly benign: trade restrictions proliferate, industrial policy clashes intensify, and major-power rivalry has hardened into the new normal. In that environment, China's steady growth and its refusal to embrace decoupling have acted as an anchor for global demand, particularly for commodity exporters and manufacturing hubs tied into global supply chains.

Stabilizing force against global governance deficits

As the United Nations celebrates its 80th anniversary this year, global governance deficits remain pressing challenges. China's stabilizing role in 2025, however, is not limited to macroeconomic performance. It is increasingly expressed in the language of institutions and norms, and the proposed Global Governance Initiative (GGI) is the clearest expression of that shift.

Unveiled amid broader debates over reforming multilateralism, the GGI is China's most explicit bid yet to move from being a beneficiary of post-war institutions to a co-designer of their next iteration.

By emphasizing sovereign equality, adherence to international rule of law, multilateralism, a people-centered approach, and taking real actions, China is tapping into long-standing frustrations in the Global South over unequal representation, politicized sanctions, and double standards in existing institutions. Crucially, the GGI does not reject the UN-centered international order; it calls for its improvement, signaling that China wants to reshape, not abandon, the rules of the game.

In 2025, facing growing protectionism and geopolitical instability, China has actively sought to foster global peace and stability. As this year marks the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, China has again reaffirmed its steadfast commitment to peaceful development and global stability.

After all, for a nation that endured great sacrifices to secure its independence and peace, reflecting on the hardships of war serves as a reminder to value today's hard-earned stability – particularly in a time of overlapping crises and increasing global turmoil.

"China always stands on the right side of history, and is ready to work with all countries to advance world peace and development, and build a community with a shared future for mankind," Xi said in his Wednesday address.

Here lies the deeper link between China's domestic trajectory and its global role. High-quality development at home – anchored in innovation, social investment, and environmental sustainability – is being presented as a template for a fairer, more inclusive globalization and stability.

Through the GGI-included initiatives and its commitment to global peace and stability, China insists that multipolarity should mean more voices at the table, more respect for developmental diversity, and more focus on concrete outcomes rather than ideological litmus tests. That message resonates in many capitals that feel lectured by the West but neglected when it comes to actual resources and policy space.

2025 has made one thing clear: China is no longer content to be a passive object of global narratives about "risk" and "challenge." It is actively defining what stability, development, and governance should mean in a new era and, through its economic performance, long-term planning under the 15th Five-Year Plan, and the GGI-included initiatives, it has proven to be a stabilizer on the world stage.

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