"The people on both sides of the Taiwan Strait are one family," Mr Xi said in a speech televised on China's state broadcaster CCTV. “No one can sever our family bonds, and no one can stop the historical trend of national reunification.”

Weeks before Trump takes office, the Chinese leader is seeking to shore up confidence that China’s economy can withstand threats.

Chinese President Xi Jinping was reportedly dismissive about the threat of deflation hitting the economy. While consumers can benefit from falling prices, persistent deflation can also lead to a downward spiral for spending and investment.

Chinese President Xi Jinping in a New Year's address declared Taiwan and China to be one people and said no nation can stop China from annexing the island nation.

No one can stop China's "reunification" with Taiwan, Chinese President Xi Jinping said in his New Year's speech on Tuesday, laying down a clear warning to what Beijing regards as pro-independence forces within and outside of the island of 23 million people.

The Chinese leader projected confidence amid Beijing’s economic struggles and ahead of the inauguration of Donald Trump, set to take a hard line on China.