China’s Xi nods to ‘external uncertainties’ in new year’s speech

Chinese leader Xi Jinping in an annual New Year’s address on Tuesday sought to shore up confidence ​that Beijing can make an economic transition and resist foreign pressure weeks before Donald Trump is due to return to the White House. Xi said the nation’s economy is on “an upward trajectory" and that the government has extensive international ties to offset challenges, messages that contrast with skepticism in the international investment community that Beijing is addressing its debt overhang and sagging consumption ahead of what could be a new trade war with the U.S. “The Chinese economy faces some new conditions, including challenges of uncertainties in the external environment and pressure of transformation from old growth drivers into new ones," Xi said, in apparent nods to both U.S.-led efforts to cut Beijing from technology supply chains and signs that China can no longer rely on heavy investment to underpin its economy. In a break with past years, Xi wasn’t shown during his address meeting one-on-one with foreign leaders like Russian President Vladimir Putin, though Xinhua News Agency said the two leaders exchanged New Year’s greetings earlier. According to Xinhua, Xi had told Putin their mutual trust and strategic coordination is handled in a spirit of “nonalliance, nonconfrontation and not targeting any third party," likely referring to the U.S. Against stepped up arms sales by the U.S. to Taiwan, Xi reiterated China’s intent to take over the democratically governed island, saying “no one can ever stop China’s reunification, a trend of the times," an echo of his comments in last year’s speech, when he said: “China will surely be unified."