BEIJING (Reuters) – President Xi Jinping convened an unprecedented gathering on Monday with key figures in China’s technology industry, including Alibaba’s Jack Ma, urging them to showcase their skills and have confidence in China’s model and market strength. The carefully orchestrated pro-business event, a departure from Beijing’s regulatory crackdown on tech giants four years ago, reflects policymakers’ concerns about slowing growth and U.S. efforts to hinder China’s technological progress, analysts noted.
Xi’s decision to convene business leaders, notably those who have achieved significant success despite U.S. pressure, underscores the crucial role of private-sector innovation in positioning China as a tech leader, experts opined.
“It’s an implicit recognition that the Chinese government relies on private-sector firms to compete with the United States in technology,” said Christopher Beddor, deputy director of China research at Gavekal Dragonomics in Hong Kong. “The government must support them to remain competitive with the United States.”
Official estimates indicate that China’s private sector, which competes with state-owned enterprises, contributes over half of tax revenue, more than 60% of economic output, and 70% of technological innovation.
Facing challenges such as U.S. tariffs and economic uncertainties, Xi emphasized the importance of private businesses in driving innovation and creating opportunities for wealth. He highlighted China’s governance structure and vast market as advantages in nurturing new industries.
Xi emphasized the need for private business owners and entrepreneurs to showcase their abilities, calling it an opportune moment for them to shine, according to state media reports that detailed his “important speech.”
At the high-profile gathering in the Great Hall of the People, reminiscent of a meeting during the U.S.-China trade war in 2018, Xi addressed assembled executives, stressing continuity in China’s economic strategy while acknowledging the potential of private businesses to foster economic growth.
Among the attendees were Liang Wenfeng, founder of DeepSeek, a startup challenging American AI ventures, along with industry leaders like Ren Zhengfei of Huawei and Wang Chuanfu of BYD, both prominent figures in electric vehicles and chip development.
Shares of Baidu fell over 8% on the Hang Seng index after none of its top executives were seen at the meeting, while founders of Baidu and ByteDance were reportedly absent.
Xi’s move to chair the business gathering, as reported by Reuters earlier, signifies China’s commitment to fostering innovation and competitiveness in the global tech race.
In addition to DeepSeek, which has been likened to a “Sputnik moment” for China, other participants showcased recent business achievements that have garnered public attention, demonstrating the country’s technological prowess and ambition.
It’s Lei Jun, the renowned CEO, who steered his smartphone and appliance company towards electric vehicles, and Wang Xingxing, the mastermind behind Unitree. A standout scene from CCTV’s Lunar New Year gala broadcast captivated audiences worldwide, featuring a mesmerizing display of dozens of Unitree humanoid robots dancing in a spectacle seemingly tailored to rival Tesla’s past endeavors and highlight China’s indigenous innovation. Among the distinguished executives in attendance were CATL’s Robin Zeng, Meituan’s Wang Xing, China Feihe’s Leng Youbin, and Will Semiconductor’s founder Yu Renrong, as shown in CCTV footage. Additionally, sources familiar with the event confirmed the presence of Tencent’s Pony Ma.
‘TECH SHARES SURGE’
Tech shares in Hong Kong have witnessed a notable surge in recent weeks driven by a mix of optimism surrounding the DeepSeek AI breakthrough and a more favorable stance by authorities towards internet giants. The Hang Seng technology index reached a three-year peak in morning trading on Monday, ultimately closing down by less than 1%.
In 2018, Xi Jinping presided over a prominent symposium for the private sector – a significant move coming six years into his presidency. During this event, he pledged tax reductions and enhanced access to financial support. Commenting on Monday’s meeting, Xiaoyan Zhang, a finance professor at Beijing’s Tsinghua University, noted that the objective was to convey a similar message stressing the significance of the private sector and aiming to “inject confidence.”
Analysts have pointed out that the presence of Jack Ma at the meeting could significantly bolster confidence. The once-prominent entrepreneur notably receded from the public eye following the suspension of the IPO of his fintech firm Ant Group by authorities in 2020, triggered by a speech he delivered that criticized China’s regulatory framework. Subsequently, his business empire, along with the broader tech industry, became the focus of regulatory scrutiny, marking a downturn for China’s private sector.
(Reporting by Beijing and Hong Kong Newsrooms; Additional reporting by Tom Westbrook in Singapore; Writing by Sumeet Chatterjee and Kevin Krolicki; Editing by Gerry Doyle and Clarence Fernandez)
