HONG KONG – In what appears to be a crucial recalibration of China’s stance toward private businesses, President Xi Jinping convened a meeting with some of the country’s most influential tech leaders in Beijing on Monday. The gathering, which included Alibaba co-founder Jack Ma, marks a significant moment in China’s economic policy, signaling a potential thawing of relations between the government and the private sector following years of stringent regulatory crackdowns.
Ma’s attendance at the meeting is particularly striking, as the billionaire entrepreneur had largely faded from public view since 2020 when his public critique of China’s financial regulators triggered an unprecedented crackdown on the country’s booming tech industry. Alongside Ma, other prominent figures in attendance included Huawei’s founder Ren Zhengfei, BYD’s CEO Wang Chuanfu, CATL’s CEO Zeng Yuqun, and Xiaomi’s CEO Lei Jun, as reported by state broadcaster CCTV. Their presence underscores the gravity of the discussions and highlights Beijing’s apparent intent to mend relations with private enterprises that have long been the backbone of China’s economic growth.
The meeting comes at a time when China’s technology sector is regaining international attention. Just weeks ago, Chinese AI startup DeepSeek stunned global markets by launching an artificial intelligence model that rivals top-tier US-based competitors at a fraction of the cost. This breakthrough has reignited optimism in China’s tech industry, which has been struggling to recover from a prolonged period of uncertainty and regulatory scrutiny that shook investor confidence and stifled entrepreneurial ambition.
Jack Ma’s return to such a high-profile platform suggests that the Chinese government is seeking to turn the page on its past confrontations with private business leaders. The regulatory storm that followed Ma’s 2020 speech led to a sweeping overhaul of China’s tech landscape, affecting corporate giants such as Tencent, ride-hailing firm Didi, and food delivery platform Meituan. Billions of dollars in market value were erased as authorities imposed tighter controls on data security, monopolistic practices, and financial operations within the industry.
The shift in tone from Beijing is being interpreted as a recognition that the private sector is indispensable to China’s economic resilience. Angela Huyue Zhang, a law professor at the University of Southern California and an expert on China’s tech regulations, noted that this meeting marks a significant moment in the country’s economic strategy. “With the domestic economy slowing and geopolitical pressures escalating, the government is making it clear that it values and relies on the private sector to drive innovation and stimulate growth,” Zhang told CNN.
The financial markets reacted swiftly to the prospect of a more business-friendly approach from Beijing. News of the upcoming symposium led to a surge in the Hang Seng China Enterprises Index, which tracks major Chinese companies. The index reached its highest point since early 2022, reflecting renewed investor confidence, although it slipped slightly on Monday.
Despite being the world’s second-largest economy, China is facing mounting challenges. The country’s post-pandemic recovery has been weaker than anticipated, weighed down by an ailing property sector, sluggish consumer spending, and rising geopolitical tensions, particularly in trade disputes with the United States. The private sector, which contributes more than 60% of China’s GDP and accounts for over 80% of employment, has been increasingly concerned about Beijing’s tilt toward state-driven economic policies. The uncertainty surrounding regulatory changes and government intervention has made entrepreneurs more cautious, dampening investment and innovation.
The meeting with tech moguls represents a potential course correction. Fred Hu, chairman of investment firm Primavera Capital, emphasized the significance of the shift. “The private sector, long the backbone of the Chinese economy and the most important growth engine, has been battered in recent years by mounting policy and regulatory uncertainties, with dire consequences to China’s economy, and worse, to its labor market with rising youth unemployment,” Hu told Reuters.
The sweeping regulatory measures introduced by Beijing in recent years wiped out over $1 trillion in market value from major Chinese corporations, rattling investors both domestically and abroad. The clampdown extended to various industries, including online education and food delivery, creating widespread apprehension among business leaders. Even as regulatory tightening appeared to ease last year, many tycoons remained wary, reluctant to expand their businesses with the same boldness they once exhibited.
Xi’s meeting with these corporate leaders signals that Beijing may be attempting to restore faith in China’s business environment. While the long-term implications of this shift remain uncertain, the presence of Jack Ma—a figure once seen as emblematic of China’s entrepreneurial prowess and later as a cautionary tale of government overreach—suggests that a new chapter may be unfolding in China’s approach to private enterprise.
