Military Modernization and Global Posturing
China's military saw key milestones in 2025, including commissioning its third aircraft carrier and unveiling combat drones and invasion barges. The US report notes excellent performance of Chinese weapons in Pakistan-India skirmishes and gray-zone tactics in territorial claims, backed by lawfare.
Beyond borders, Beijing supported Russia in Ukraine with dual-use goods, aided Iran proxies, and intensified US cyberattacks. Tensions peaked with US $11.1B arms to Taiwan on December 17, positioning 2026 as pivotal for the island.
Xi deepened anti-corruption, military upgrades, and control over religion to quash dissent, preparing for potential conflict across domains while eroding US alliances.
Made in China 2025: Tech and Industrial Gains
The Made in China 2025 strategy yielded significant advancements, reducing vulnerabilities and boosting geopolitical leverage, per US congressional review. Biotech closed gaps with US, new drugs topping 30% of global pipelines; AI integration targeted 2030 across industries.
Deals proliferated: Yarrow Bioscience's global rights for GenSci098 therapy, Fosun's Pfizer obesity pact. EV firms tipped for global dominance, Canon shuttered China plant as locals rose, and Jiangnan Shipyard eyed world's first nuclear vessel.
Despite sluggish growth and tariff truces with Trump, Xi prioritized self-reliance, though wolf warrior diplomacy damaged image abroad.
Cultural Influence and Economic Realities
China shaped global film in 2025 beyond box office, with Disney's Zootopia 2 earning half its $1B from China, influencing market dynamics, tech, and narratives.
New regulations promoted reading culture, expanding libraries and digital access. A Beijing-led Global South consensus emerged, offering development models amid US-China frictions.
Overall, 2025 reflected Xi's vision of East rising as West declines, with coordinated strategies offsetting economic woes estimated at 2.5-3% growth.