Chinese President Xi Jinping Meets with Entrepreneurs, Signaling Support for Private Sector
On Monday, Chinese President Xi Jinping met with prominent entrepreneurs, demonstrating the government's potential support for the private sector after years of volatility.
President Xi delivered a speech after receiving input from representatives of private firms, according to the state-run Xinhua News Agency. Premier Li Qiang was also present.
Although the specific firms or executives represented were not disclosed, the meeting included prominent figures such as Alibaba Group Holding Ltd. co-founder Jack Ma and Deepseek founder Liang Wenfeng.
This summit conveys a significant message that the Communist Party is shifting towards a more supportive stance towards the private sector, which drives a majority of China's economic growth.
Ma's disappearance from public view in 2020 signified the peak of President Xi's crackdown on the internet and private sector. However, recent developments indicate a less confrontational approach, as companies align themselves with Xi's priorities in areas such as artificial intelligence (AI).
"This meeting holds immense significance due to President Xi Jinping's presence, highlighting the government's commitment to supporting the private sector," said You Chuanman, a senior lecturer at the School of Law, Singapore University of Social Sciences.
"It marks a continuation of Beijing's shift towards a more tolerant and encouraging stance towards the private sector," You added.
Optimism surrounding AI's potential has sparked a rally in China's stock market, with the Hang Seng China Enterprises Index becoming the world's top performer.
Liang, whose cost-effective chatbot has positioned China as a leader in AI development, attended a closed-door symposium hosted by Premier Li last month. Ma has also become more visible in recent times, delivering speeches on AI.
Alibaba's own Qwen model has performed well in benchmark tests, demonstrating the company's growing relevance in the field. Apple Inc.'s incorporation of Alibaba's AI technology into Chinese iPhones further signifies confidence in its capabilities.
"Chinese AI models like DeepSeek-R1 have altered the narrative around China technology, boosting investor optimism and helping fuel the rally," Goldman Sachs analysts noted.
The extent of the government's shift towards the private sector remains uncertain. Xi's support could potentially boost the stock market and revive entrepreneurial spirits, but concrete policy actions will ultimately determine the impact.
Jack Ma embodies the rollercoaster ride of China's private sector. Once hailed as a giant of the industry, Ma faced scrutiny in 2020 for criticizing the financial sector, leading to the suspension of Ant Group's IPO and a subsequent crackdown on his empire.
Ma's recent return to the public eye and potential meeting with President Xi could signal a reversal of Alibaba's fortunes.
Alibaba's ambitious plan to split itself into independent units was abandoned in 2023, leading to the loss of key executives. However, the company's focus on AI has added $90 billion to its market value in 2024.