Xi Talks Up China’s AI And Chip Path In New Year Speech As Demand Surges Despite Global Curbs: Report

• He cited progress under the current Five-Year Plan and gains in economic and technological capacity.
• Beijing is tightening its push for domestic semiconductor equipment and self-reliance.
• The outlook emphasized growth and manufacturing recovery ahead of 2026.

Chinese President Xi Jinping reportedly used his New Year’s Eve address to project confidence in China’s development model, highlighting advances in AI, semiconductors, robotics and defense as evidence that the country is building momentum despite external pressure.

AI, Chips Take Center Stage In Xi’s Outlook

Xi said innovation remains a key focus of China’s growth strategy, pointing to progress in large AI models, semiconductor research, and areas such as humanoid robots and drones, according to a report by Bloomberg.

He said the country had met major goals under its 14th Five-Year Plan and that gross domestic product (GDP) is expected to reach about 140 trillion yuan ($20 trillion) in 2025, noting gains in economic, technological, and defense capabilities.

AI Demand Surges Even As Curbs Persist

Xi’s upbeat tone comes as China’s AI ambitions are colliding with global supply constraints. Demand for advanced AI chips inside China has surged, prompting Nvidia to seek additional manufacturing capacity at Taiwan Semiconductor Manufacturing Co. for its H200 processors. 

Chinese firms have reportedly lined up orders for more than 2 million H200 units for delivery in 2026, far exceeding Nvidia’s current allocation.

Major Chinese internet companies are driving the demand, viewing the H200 as a step-change over domestic alternatives, even as U.S. export controls limit access to the most advanced chips.

Beijing Tightens Self-Reliance Push

In addition to its use of approved foreign chips, Beijing is also speeding up domestic efforts. Chinese chipmakers have been asked to demonstrate that at least 50% of equipment is locally sourced in order to get new fabs or expansions approved, and officials say they would like to go all-local eventually. 

The policy extends beyond items restricted by U.S. rules and is already nudging firms toward domestic suppliers such as Naura.

The strategy has helped fuel momentum across China’s semiconductor ecosystem, from foundries and equipment makers to AI chip designers, as companies adapt to a more closed global tech environment.

Xi Signals Confidence On Growth Path

On Wednesday, Xi struck an upbeat note on the broader economy as well, saying China is likely to meet its growth target of around 5% and that there are indications that manufacturing is recovering. 

Notably, he downplayed external risks in his outlook on Wednesday, instead urging confidence before the 15th Five-Year Plan that kicks off in 2026.

How Did Stocktwits Users React?

On Stocktwits, the S&P 500 ETF (SPY) showed ‘neutral’ sentiment amid ‘normal’ message volume, while the Invesco QQQ Trust (QQQ) reflected ‘bullish’ sentiment with ‘normal’ message volume.

In contrast, the SPDR Dow Jones Industrial Average ETF (DIA) and the iShares MSCI China ETF (MCHI) both saw ‘bearish’ sentiment amid ‘low’ message volume.

So far this year, SPY is up 19%, QQQ has gained 22%, and DIA is higher by 15%, while MCHI has risen 32%, outperforming the other major ETFs.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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