In a 40-minute address, Xi Jinping emphasized the Communist Party's significant role in shaping global development, contrasting with his previous focus on domestic issues. He described the CCP as the world's largest ruling party and credited it with enabling China's rise to become the second-largest economy, accounting for 28% of global manufacturing.
Xi noted that the world is entering a 'new era of turbulence and transformation,' suggesting that China's international strategy may evolve. He announced a 7% increase in defense spending, the slowest since 2021, while reaffirming China's stance on Taiwan and the importance of military strength for national security.
Xi's remarks could influence investor sentiment regarding China's economic policies and its geopolitical strategies, particularly as he prepares for a visit to the U.S. in September