China’s Xi Jinping Lures Private Sector as He Meets Jack Ma, Other Tech Entrepreneurs

President Xi Jinping has met Jack Ma and other tech leaders in a meeting with prominent Chinese entrepreneurs that he presided over on Monday, February 17. Jinping’s meeting with tech entrepreneurs represents a shift from the private sector marginalization that the Chinese government has shown for a long time, Yahoo Finance reported. Beijing now sees the private sector as instrumental in reviving its economy.

Eliminating Tech Crackdowns

President Jinping’s symposium was attended by big names in the electric vehicle, chip manufacturing, and artificial intelligence industries. The Chinese leader delivered a speech after meeting representatives from Alibaba Group Holding and Xiaomi Corporations.

During the meeting, Xi voiced support for the Chinese private sector. The meeting demonstrated the government’s software stance towards businesses that fuel China’s economy. Xi delivered a speech after hosting representatives of firms including the Alibaba Group Holding Ltd.

“It is necessary to resolutely remove all kinds of obstacles to the equal use of production factors and fair participation in market competition. Beijing should continue to promote the fair opening of the competitive field of infrastructure to all kinds of business entities, and continue to make great efforts to solve the problem of difficult and expensive financing for private enterprises,” Jinping told entrepreneurs.

The President asked the tech CEOs and founders to sustain their competitive spirit and remain confident in China’s future. The Chinese leader committed to eliminating unreasonable fines or fees against private enterprises and leveling the playing field for all players. This promise came as a relief to Chinese entrepreneurs, who have previously complained of state-dominated systems.

The Chinese parliament said it will commence a review of the country’s laws to facilitate private sector economic growth strategy even as President Jinping emphasized that the current changes are temporary.

Boosting Social Confidence

Experts have seen Jinping’s move to express China’s private sector support as an indication of China’s wider strategy to boost confidence.

“This is the strongest signal China could release to boost social confidence. The fact that Xi Jinping himself shows up to meet with the entrepreneurs highlights the political significance of this meeting,” You Chuanman, Senior Lecturer at Singapore University of Social Sciences said.

Previously, the Chinese government has launched major crackdowns on tech companies. Jack Ma became the highest-profile tech entrepreneur to be targeted by Jinping’s private sector crackdown in 2020. At the time, government authorities scuttled an IPO of Alibaba’s affiliate company, Ant Group. The crackdown marked the start of a 12-month campaign to tighten state control over the Chinese economy. The campaign also targeted billionaires and shifted resources towards government priorities that included tech self-sufficiency and national security.

The crackdown forced Jack Ma to disappear from the public. But things have taken a dramatic turn in recent months following China’s economic slowdown. Chinese authorities are now less combative and companies have aligned themselves with the government’s push for tech leadership in industries such as AI.

Market Reaction

Chinese tech stocks had mixed reactions to the February 17 meetings as investors awaited details of Jinping’s meeting with tech entrepreneurs. Last month, stock prices surged after DeepSeek launched its latest AI model. DeepSeek surpassed ChatGPT on Apple Play Store, triggering optimism in the country’s AI advancements.

“Some investors chose to take profit. Whether there will be further upside room depends on what support measures will be introduced, and it’s hard for the effects of these measures to manifest within a short period of time,” Chanson & Co Director Shen Meng said.

Besides Xi Jinping and Jack Ma, the private sector entrepreneur meeting was attended by tech leaders who are considered important figures in the country’s ambition to lessen its reliance on US technology. They included Tencent founder Pony Ma, Meituan’s Wang Xing, DeepSeek founder Liang Wenfeng, Unitree’s Wang Xingxing, and Huawei’s Ren Zhengfei. Robin Zeng of Contemporary Amperex and BYD’s Wang Chuanfu were also present. The two represented China’s fast ascent in electric vehicles.