BEIJING, Feb 26, 2025 (BSS/AFP) - Chinese President Xi Jinping told top officials on Wednesday that Beijing should address domestic and international difficulties "calmly", one week before the country's biggest annual political gathering.

The world's second largest economy is facing down sluggish internal demand and a protracted property sector crisis, as well as the possibility of a deepening trade war with the United States after President Donald Trump took office.

Xi's comments were in response to a 2024 work report submitted by officials, which he "earnestly reviewed... and put forward important requirements", state news agency Xinhua said.

This year, "we must enhance our political capabilities, calmly respond to challenges brought about by changes in the domestic and international situation (and) adhere to the general key of working to seek progress while maintaining stability," Xi said, according to Xinhua.

Xi added that leaders must work to "promote the sustained recovery of the economy, steadily improve people's living standards and ensure stability in the overall social situation".

China is set to convene its largest annual political gathering in Beijing next week.

Known as the "Two Sessions", the event is centred upon plenary sessions of the National People's Congress and a top political advisory body.

Observers will be closely watching this year's gathering for signs of more robust policy support for the economy, which has struggled to achieve a full recovery since the Covid pandemic.