President Xi Jinping on Tuesday said that China's economy faced the "pressure of transformation" but could overcome this through hard work, in his annual New Year's speech broadcast to the nation.

"The current economic operation faces some new situations, challenges from the uncertainty of the external environment, and pressure of transformation from old drivers of growth into new ones, but these can be overcome through hard work," he said in an address broadcast on state television.

He noted the economy had rebounded and was on an upward trajectory, with its GDP expected to exceed US$17.8 trillion.

Xi said the country had fostered new quality productive forces and had seen new business sectors, forms and models emerging.

China's annual production of new energy vehicles topped 10 million for the first time in 2024, while the country made breakthroughs in integrated circuit, artificial intelligence, quantum communications and many other fields, Xi said in his message.

Xi reiterated China's commitment to promoting global governance reform and contributing to the maintenance of world peace and stability.

"In a world of both transformation and turbulence, China, as a responsible major country, is actively promoting global governance reform and deepening solidarity and cooperation among the Global South," he said.

Xi also said "Chinese people on both sides of the Taiwan Strait are one family. No one can sever our blood ties, and no one can stop the historical trend of the reunification of the motherland."

The president pledged China would unswervingly implement the policy of One Country, Two Systems to maintain long-term prosperity and stability in Hong Kong and Macau. (Xinhua/AFP)