Xi meets China’s tech chiefs in bid to boost private sector

BEIJING: China’s President Xi Jinping met with prominent industry leaders, including Alibaba’s founder Jack Ma, in an effort to revitaliSe the country’s economic growth.

The meeting, which took place at Beijing’s Great Hall of the People, aimed to promote continuity in China’s economic development strategy and to support the nation’s private businesses.

Talking on the importance of private entrepreneurship, he expressed confidence in the country’s ability to create wealth and opportunities for its citizens. He stated that China’s private enterprises have “broad prospects and great promise” and that it is the right time for these businesses to “show their talent.”

The Chinese president also highlighted the advantages that China has in developing new industries, citing the country’s scale of market and governance as key factors.

The meeting was notable for the presence of several top executives from leading Chinese companies, including Alibaba’s Jack Ma, Tencent, Xiaomi, BYD’s Wang Chuanfu, and Huawei’s Ren Zhengfei. Liang Wenfeng, the founder of DeepSeek, a startup that is pushing the boundaries of artificial intelligence, also attended the gathering.

However, the absence of top executives from several prominent tech companies, including ByteDance (the parent company of TikTok) and Baidu, was seen as significant. Baidu shares fell by more than 8 percent following the meeting, as investors interpreted the snub as a sign that the company is no longer in favour with the Chinese government.

The meeting comes at a critical time for China’s economy, which is struggling with an economic downturn driven by a housing crisis, stagnant low consumption, and high youth unemployment. Xi’s visit to the symposium, which first emerged on Friday, helped spur gains in Asian markets as investors welcomed the renewed focus on supporting private tech sector.

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Analysts suggest that Xi’s move to gather business leaders underscores the importance of private sector innovation for China to gain ground in the tech industry. “It’s a tacit acknowledgment that the Chinese government needs private sector firms for its tech rivalry with the US,” said Christopher Beddor, the deputy China research director at Gavekal Dragonomics in Hong Kong. “The government has no choice but to support them if it wants to compete with the US.”

The gathering is seen as an attempt to halt the economic slump in the world’s second-largest economy and to signal the Chinese government’s commitment to supporting private businesses. However, the extent to which Xi’s words will translate into concrete policies and support remains to be seen.

The tightly choreographed pro-business rally is being seen as a reflection of policymakers’ concern about a slowdown in growth and efforts by the US to limit China’s technological development. As China continues to navigate the complex landscape of global economic competition, the government will need to strike a delicate balance between controlling and supporting its private sector, lest it risks stifling innovation and entrepreneurship.

In a recent speech, Jack Ma, who was once at the centre of a crackdown on the tech industry, had criticized Xi. This meeting with Xi was seen as an attempt to patch up their relationship and to send a message of renewed support to the Chinese private sector.

The meeting was also notable for the fact that Ma was filmed standing and applauding as Xi entered a room, according to a video broadcast on state broadcaster CCTV on Monday. Xi, Ren Zhengfei, and BYD’s Wang Chuanfu were filmed giving speeches but no audio or transcripts have been published.

Investors on Monday were scouring pictures and footage of the meeting to spot top bosses and trading accordingly, with the presence of prominent industry leaders being seen as a sign of the businesses or individuals that are favoured by the government.