As of mid-2025, Chinese President Xi Jinping continues to lead the nation through a complex global environment shaped by economic uncertainty, shifting diplomatic dynamics, and rapid technological change.

Economic Strategy and Domestic Developments

In his 2025 New Year’s address, President Xi highlighted China’s economic resilience. The country’s GDP is expected to exceed 130 trillion yuan, with grain output surpassing 700 million tons. He reaffirmed the government’s commitment to high-quality development—prioritizing green, low-carbon growth, expanding the new energy vehicle sector, and advancing digital industries.

Despite these achievements, challenges remain. Xi acknowledged the need for more proactive macroeconomic policies to boost consumption and support economic recovery. At a key meeting in December 2024, he urged government officials to remain focused and prepare thoroughly to meet the 2025 economic targets, while stressing the importance of creating a favorable external environment.

Diplomatic Engagements and Global Relations

Xi’s foreign policy in 2025 reflects China’s strategic push to reinforce bilateral relationships and expand its global influence. In May, he visited Russia to mark the 80th anniversary of the Soviet victory in World War II, reaffirming the strategic partnership between the two nations. During the visit, China and Russia signed the Joint Statement on Deepening the Comprehensive Partnership and Strategic Cooperation in the New Era, along with over 20 agreements spanning multiple sectors.

Xi also held a phone conversation with South Korean President Lee Jae-myung, emphasizing mutual respect and cooperation to maintain stable ties. Additionally, he met with New Zealand Prime Minister Christopher Luxon to discuss closer collaboration in trade, education, and tourism.

Trade Relations with the United States

A major development unfolded in June 2025, as China confirmed its commitment to a new trade agreement with the United States. Following direct talks between Xi and U.S. President Donald Trump, China agreed to resume the supply of rare earth materials to the U.S.—a significant move toward easing long-standing trade tensions.

“Xiconomics” and Economic Self-Reliance

China’s evolving economic doctrine, often referred to as “Xiconomics,” centers on self-sufficiency, technological independence, and ideological cohesion. In the face of renewed trade friction with the U.S., China is seeking to insulate itself from external pressures—especially in critical areas like semiconductors and high-tech manufacturing.

U.S. restrictions have hindered Chinese tech companies, forcing them to rely on less advanced domestic alternatives. In response, Beijing is leveraging its control over rare earth minerals as a strategic asset in trade negotiations. Meanwhile, some Chinese companies have begun relocating operations to countries like Vietnam, especially in industries historically reliant on U.S. markets.

However, sectors such as electric vehicles are flourishing, thanks to substantial state support and growing global demand. Xi has been laying the groundwork for a long-term economic standoff with the U.S., mobilizing public sentiment through nationalist messaging and drawing on historical narratives, including the Korean War. While Western nations are seeking to reduce their reliance on China—especially in areas like rare earths—many analysts believe the global supply chain still heavily favors Beijing.

Scientific and Technological Advancements

Under Xi’s leadership, China continues to make significant progress in science and technology. The successful Chang’e-6 lunar mission collected samples from the moon’s far side, while the commissioning of the domestically-built deep-ocean drilling vessel Meng Xiang marks a leap forward in marine research capabilities.

China is also investing heavily in cutting-edge technologies such as artificial intelligence, quantum computing, and renewable energy, with the dual goals of reducing foreign dependence and ensuring long-term sustainability.

Conclusion

In 2025, Xi Jinping’s leadership is defined by a multifaceted strategy that seeks to address domestic economic challenges, deepen global partnerships, and advance China’s position in science and technology. As global dynamics continue to shift, Xi’s decisions will remain central to shaping China’s trajectory in the years ahead.