Chinese President Xi Jinping has said that tough challenges remain in China’s fight against COVID-19 and acknowledged divisions in society that led to rare spontaneous protests, after weeks of silence on a virus policy pivot that’s infected hundreds of millions and delivered a severe blow to economic activity.

In a New Year’s address on Saturday, Xi said the country is in a new phase of COVID-19 control and has adapted after following a science-based and targeted approach. The day before, he said the nation’s strategy had been "optimized” to protect people’s lives and minimize economic costs.

On Dec. 7, the government took definitive easing steps from its harsh zero-tolerance approach to containing COVID-19, which had included snap lockdowns, frequent mass testing and largely closed borders. Xi had repeatedly defended the strategy despite mounting economic costs, including as late as mid-October.