Chinese President Xi Jinping has made a strategic move to restore confidence in the country’s private sector, particularly in the technology industry, by meeting with key business leaders, including both rising and veteran entrepreneurs.
The event, which featured prominent figures such as Jack Ma, founder of Alibaba, and Liang Wenfeng, the young CEO of artificial intelligence startup DeepSeek, highlighted a potential shift in Beijing’s approach toward private enterprises.
The meeting marked a significant moment in China’s evolving economic policy. In recent years, regulatory crackdowns on major private enterprises, including Alibaba and Tencent, signaled tighter state control over the sector. However, Xi’s latest engagement suggests a recalibration of this stance. While reaffirming the importance of the private sector in China’s economic development, he also emphasized that businesses should align with the Chinese Communist Party’s strategic objectives.
This shift comes amid China’s broader efforts to boost investor confidence and stimulate economic growth, which has faced challenges due to declining private investment. Government data indicates that private investment contracted in both 2023 and 2024, highlighting concerns about business sentiment.
One of the most notable moments of the meeting was Xi’s interaction with Liang Wenfeng of DeepSeek, a rising AI powerhouse that has positioned itself as a competitor to Western artificial intelligence firms. The recognition of DeepSeek underscores the government’s focus on advancing high-tech industries, particularly in artificial intelligence, electric vehicles, and advanced manufacturing.
Jack Ma’s presence was also symbolic, as it marked his return to the public eye after his fallout with regulators in 2020. His handshake with Xi was widely interpreted as a gesture of reconciliation, signaling that Beijing may be willing to mend ties with previously targeted tech leaders.
While the meeting reassured private businesses, it also reinforced the government’s expectation that companies serve national interests. Xi reiterated the principle of “common prosperity,” which aims to curb excessive wealth accumulation while promoting broader economic benefits. Entrepreneurs were urged to contribute to China’s technological self-sufficiency, particularly in the face of growing geopolitical competition with the United States.
Beijing’s approach reflects a balancing act—encouraging innovation and private investment while maintaining tight political oversight. Analysts suggest that while the meeting and recent legislative efforts, such as the proposed Private Economy Promotion Law, may help ease concerns, sustained economic recovery will likely require additional fiscal and monetary support.
With input from the Financial Times, Reuters, CNBC.
