Beijing: Chinese President Xi Jinping’s New Year address on January 1, 2026, went beyond ceremonial greetings, laying out a confident vision of China’s technological rise despite sustained pressure from the United States. Broadcasting from Beijing to an audience of more than 1.4 billion people, Xi highlighted how U.S.-led semiconductor restrictions have unexpectedly accelerated China’s push toward self-reliance and innovation in artificial intelligence and chip manufacturing.
“We have achieved major breakthroughs in chip research and development,” Xi said, stressing that Chinese AI models are now competing among the world’s leading systems. He noted that rather than slowing progress, export controls and technology bans have strengthened China’s resolve to build an independent and resilient innovation ecosystem.
Xi pointed to rapid advances in domestic AI and semiconductor capabilities, positioning China as one of the fastest-growing innovation-driven economies globally. Industry developments appear to support this claim. The recent launch of DeepSeek AI’s R1 model reportedly sent shockwaves through global tech circles, drawing comparisons with top Western AI systems and triggering volatility in major semiconductor stocks.
Within China, a new generation of tech entrepreneurs has emerged despite global trade barriers. Domestic chipmakers and AI startups are attracting massive investment, with founders becoming high-profile symbols of China’s homegrown tech push.
Framing external trade restrictions as catalysts rather than constraints, Xi argued that “blockades and suppression only strengthen our determination to achieve technological independence.” His remarks reflected a broader policy shift—from reliance on foreign imports to innovation-led self-sufficiency.
The message carried clear geopolitical undertones. Measures designed to curb China’s technological ascent, Xi suggested, may instead have hastened it. As he concluded his address, the Chinese leader projected confidence that the country is entering a new phase—one in which China helps set the global pace for technological innovation, driven by its own capabilities and strategic vision.
