Crisis Management for a Conflict with North Korea

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China should focus on economy not ‘territorial expansion:’ Lai

Taipei Times | English | News | Dec. 5, 2025 | South China Sea

President William Lai of Taiwan urged China to prioritize improving its economy over pursuing territorial expansion, highlighting China's struggling economic performance. Speaking at the New York Times' DealBook Summit, Lai noted Taiwan’s economy is forecast to grow 7.37 percent in 2025, while China’s growth is expected to be just above 4 percent according to international financial institutions.

Lai expressed hope that President Xi Jinping would focus on the well-being of the Chinese people amid economic pressures and indicated Taiwan’s willingness to assist in addressing these challenges. He did not provide further details on how Taiwan might offer such support.

China’s growth estimates for 2025 from the IMF, World Bank, Goldman Sachs, and Standard Chartered range between 4.5 and 5 percent. Despite meeting its growth target through policy support and strong exports—especially to the US—China faces worsening economic imbalances, with factory output exceeding demand and expectations of ongoing deflationary pressures. Meanwhile, Taiwan's tech-driven economy is projected to experience its fastest growth in 15 years, propelled by rising demand for artificial intelligence technologies.

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