China should focus on economy not 'territorial expansion', Taiwan president says

China has ramped up military and political pressure against Taiwan, whose government rejects Beijing's territorial claims

Taiwan President Lai Ching-te delivers a speech after inspecting reservists operating a Taiwan made Hummer 2 Drone during a training session at Loung Te Industrial Parks Service Center in Yilan, Taiwan Dec 2, 2025. REUTERS

China's economy is in a bad way and President Xi Jinping should focus on improving the lives of his people and not "territorial expansion", Taiwan President Lai Ching-te said in an interview with the New York Times.

China, which views the democratically governed island as its own territory, has ramped up military and political pressure against Taiwan, whose government rejects Beijing's territorial claims.

Speaking to the New York Times' DealBook Summit, Lai said Taiwan's economy is forecast to grow 7.37% this year, "while international financial institutions estimate China's growth to be only a little above 4%".

"China's economy is indeed struggling," Lai said, according to a transcript released by his office on Thursday.

"We sincerely hope that as China faces economic pressures, President Xi Jinping will focus not on territorial expansion but on improving the well-being of the Chinese people," he added.

"Taiwan is willing to help and to cooperate in addressing these economic challenges," Lai said, without elaborating.

China's Taiwan Affairs Office did not immediately respond to a request for comment.

International financial institutions and banks like the IMF, World Bank, Goldman Sachs and Standard Chartered estimate China's 2025 growth to be between 4.5% and 5%.

China, the world's second-largest economy, is on track to reach this year's growth target of around 5% - thanks to policy support and resilient exports buoyed by traders accelerating deliveries to the United States amid fears the tariffs could rise even higher.

But economic imbalances have worsened this year as factory output outpaces demand, and analysts expect deflationary pressures to linger next year, even as the government steps up efforts to curb overcapacity and price wars among firms.

Taiwan's tech-heavy economy is expected to grow at its fastest pace in 15 years, riding the wave of demand for artificial intelligence technology, its statistics office said last week.