Chinese President Xi Jinping met with Alibaba co-founder Jack Ma and other top tech leaders in Beijing on Monday, marking a significant moment for China’s private sector. The gathering suggests a potential shift towards a more business-friendly environment after years of regulatory crackdowns.
Alongside Ma, key figures at the meeting included Huawei’s Ren Zhengfei, BYD’s Wang Chuanfu, CATL’s Zeng Yuqun, and Xiaomi’s Lei Jun, as reported by state broadcaster CCTV.
The timing of this symposium is notable, coming shortly after Chinese startup DeepSeek’s latest AI model made waves by challenging global tech giants with competitive performance at a lower cost. This development has renewed optimism in China’s tech sector, which has been recovering from the three-year-long regulatory crackdown that began in late 2020.
That crackdown was triggered when Ma openly criticized China’s financial regulators and banks, leading to a sweeping policy overhaul that affected major companies like Tencent, Didi, and Meituan. Since then, Ma had largely disappeared from public view, making his presence at this meeting a strong indicator that authorities are shifting their stance on private business.
According to Angela Huyue Zhang, a law professor at the University of Southern California, this meeting signals that China is now prioritizing private enterprise to drive innovation and economic growth, especially as it faces slowing domestic growth and rising geopolitical pressures.
Renewed Support for Private Businesses
China’s economic challenges, including a struggling property sector and low consumer confidence, have prompted the government to reengage with the private sector. Private businesses contribute over 60% to China’s GDP and more than 80% of employment, making them vital to the country’s economy.
Fred Hu, chairman of Primavera Capital, called the meeting a “major course correction” in China’s policy toward private businesses. He noted that the sector, once the backbone of China’s economy, had been severely impacted by regulatory uncertainty, affecting economic growth and leading to rising youth unemployment.
Investors responded positively to news of the meeting. The Hang Seng China Enterprises Index, which tracks major Chinese companies, climbed to its highest level since early 2022 after reports of the symposium emerged, though it saw a slight decline on Monday.
China’s previous crackdown wiped out over $1 trillion in market value for many private firms, raising concerns about future innovation. Despite easing restrictions in recent years, some business leaders remained hesitant to expand. However, this latest meeting with Xi suggests a renewed effort to restore confidence in the private sector and encourage growth.
