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China is facing tough challenges with new phase of COVID-19, according to President Xi

In a speech addressing the nation on New Year's Day, Xi said that despite facing unprecedented difficulties, China has made progress in overcoming the challenges posed by the pandemic.

Chinese President Xi Jinping delivers a New Year address in Beijing. (AP)

China: China's President, Xi Jinping, has said that the country is facing challenges as it enters a new phase in its COVID-19 response.

In a speech addressing the nation on New Year's Day, Xi said that despite facing unprecedented difficulties, China has made progress in overcoming the challenges posed by the pandemic.

He also highlighted the successful convening of the 20th National Congress of the Communist Party of China and the country's strong economic performance, including a projected GDP of over 120 trillion yuan for the year and a 19th consecutive year of bumper harvests.

In addition, Xi noted the country's efforts to address pressing issues, including poverty elimination and rural revitalization, and to ease the burden on businesses through tax and fee cuts.

He also highlighted China's achievements in sports and space exploration, including the successful conclusion of the Beijing Olympic and Paralympic Winter Games and the completion of China's space station.