In 2018, President Xi Jinping invited entrepreneurs from diverse industries to a rare meeting in Beijing— an event where front-row seats were graced by relatively unknown executives. Fast forward to recent times, with China navigating a deepening technology clash with the U.S. and celebrating homegrown triumphs against American pressure.
On a recent occasion, Xi gathered a notable private sector contingent led by figures like the founders of BYD, Huawei, Alibaba, Tencent, and Xiaomi, alongside the up-and-coming AI startup DeepSeek. This assembly underscores Xi's focus on leveraging the private sector to fulfill his vision of enhancing China's technological independence and securing supply chains.
The evolution from 2018 highlights a shift in Chinese leadership's recognition of the pivotal role tech companies play in economic development, compared to a time when smaller firms predominated such gatherings. This transformation signifies a growing acknowledgment of these firms' contributions to China's economic landscape.
Xi's call for entrepreneurial prowess and confidence in China's market strength underscores a shift towards promoting private companies as key players aligned with state-owned entities, notably in the pursuit of technological self-sufficiency. While stimulating private sector involvement to bolster the economy, Beijing is also striving to harness innovation to circumvent external constraints on exports and technology.
Noteworthy attendees like Huawei's Ren Zhengfei and BYD's Wang Chuanfu directly opposite Xi, alongside prominent figures Jack Ma and Pony Ma seated in the front row, signal a strategic alignment and a softening stance towards previously scrutinized tech leaders.
As President Xi champions the private sector, upcoming legislation such as the Private Economy Promotion Law aims to ensure fair treatment and protection for private enterprises, reinforcing market optimism towards private enterprise prospects. While signaling a favorable climate for private businesses and tech firms, market watchers remain cautious given past developments.
The resonance of Xi's gestures and ongoing policy support are foreseen as key drivers for the tech sector's growth, as evidenced by a positive market response including Alibaba shares rising post-meeting greetings between Xi and Jack Ma.