Xi Jinping says Chinese business having ‘tough time’ in new year message

China’s president, Xi Jinping, acknowledged in his new year’s message that “some enterprises had a tough time” in 2023 as data showed a weakening of factory production deepened this month, but he vowed to step up the pace of the economy’s recovery.

Speaking on TV, Xi said: “Along the way, we are bound to encounter headwinds. Some enterprises had a tough time. Some people had difficulty finding jobs and meeting basic needs.”

The Chinese leader also reiterated his intention to annex Taiwan, a self-governing democracy which Beijing claims is a Chinese province, saying it will “surely be reunified”.

The world’s second-biggest economy’s recovery remains sluggish, held back by a severe property slump, lacklustre global demand and record youth unemployment. Evergrande, once China’s biggest developer, has embarked on a painful debt restructuring process, while Country Garden, its main rival, defaulted in October.