China's Xi strikes bullish tone in speech to mark Lunar New Year

Chinese leader Xi Jinping struck a bullish tone during a speech on Monday ahead of Lunar New Year, after acknowledging "complex and severe situations" in recent months.

Xi addressed the gathering of top Communist Party officials as China gears up for its biggest public holiday, which this year runs from January 28 to February 4 and will see people bid farewell to the Year of the Dragon and ring in the Year of the Snake.

He leads a country still struggling to cement its economic recovery from the Covid-19 pandemic and beset by a property sector crisis, chronically low consumption and high youth unemployment.

China's economy grew five percent in 2024, its slowest rate since 1990, excluding the financially tumultuous years of the pandemic.

To reignite the stuttering economy, Beijing in recent months has announced aggressive support measures, including cutting key interest rates, easing local government debt and expanding subsidy programs for household goods.

"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 said.

He said Beijing had "stepped up efforts to push a basket of incremental policies to promote economic recovery".

"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," he said.

Experts have warned that the recovery remains uneven, and Beijing may face further headwinds this year if US President Donald Trump follows through on vows to hike tariffs on Chinese goods in retaliation for allegedly unfair trade practices.

They have also warned more efforts are needed to boost domestic consumption as the outlook for Chinese exports becomes more uncertain.

By a frozen lake dotted with ice skaters in Beijing's historic centre, some Lunar New Year travellers expressed cautious optimism that the stimulus measures would put the country back on track in the Year of the Snake.

"Now China's policies toward export and trade are very open," Zhong Haiping, a 27-year-old trader from southern Guangdong province, told AFP.

She said that she aims to conquer "some difficulties" at work in the coming year, but hopes "the Year of the Snake will be better than the Year of the Dragon".

Student Li Boxuan, who travelled from the northwestern city of Xi'an, is to set to try his luck in China's job market -- and contend with the country's high youth unemployment.

"I should graduate next year, so I hope I can find a suitable job," the 25-year-old told AFP.

"I hope I can progress together with our country, and we can both realize our dreams for the future."

© Agence France-Presse